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In order to sell my house can i negotiate the agent fees?

  • February 25 2009 - US
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Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

 
 

Answers (36)

West: There is a place for nearly all types of buyer, sellers and agents in this market and likely in future. Some people really like the full service broker, some prefer a la carte, some want to do it on their own.


This site is here to empower all three and whichever a buyer or seller chooses. They are apt to be much more comfortable after visiting sites like this because there are both full service and discount brokers on here to provide them the transparency that makes it easy to choose which is the best suited to their needs.

  • September 10 2009
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It is truly amazing how well the RE brokers have fended off the discount brokerage concept...they have essentially scared sellers into thinking that full price realtors wont show discount realtor homes...its truly absurd.  This actually does occur which is completely illegal...One day the realtor concept will be in the same position as the travel agent is now...replaced by technology and diligence by the buyer.  The concept of discount brokerage will eventually take hold.

  • September 09 2009
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Jeff's rationale, is the agent that charges more must be better.

Ok, I'll charge 100% commissions. I'm the bestest ever!!!!
  • September 07 2009
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I think he dredged it up because he felt like he needed to justify why he should leech  a percentage off of a deal.
  • September 07 2009
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Jeff: Why did you dredge up a thread from March?
  • September 07 2009
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Wow Jeff! You are full of all kinds of bad advice. Don't choose a realtor that will negotiate their fee? You expect me to pay 10 percent on a 20 million dollar raw land deal? I just don't see your services as being worth the 2M. Again, the big thing you realtors are pushing is the MLS. Another example of someone latching onto a deal, providing absolutely nothing, getting signed releases of liability for themselves and getting paid. Talk about a ONE Trick Pony! What a racket you guys have!
  • September 07 2009
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Great discussion but to bring this back on topic.... The short answer is YES. All commissions are negotiable. Do keep in mind that for some companies, they have minimums due to commission splits though. The other thing to consider is if an agent says "I charge X%" then you ask if they would take 1% less and they agree, you should consider looking for another agent. If that agent can't even protect his OWN commission that he says he would charge, how in the world do you expect him to get you your asking price for the home? If you can negotiate down HIS pay, then that makes you a better negotiator than he is and you're better off with someone else. An agent that gives you their rate and sticks to it, is a much stronger negotiator. That half a percent or 1% that you are asking them to cut is nothing compaired to the amount they could cost you in your net proceeds if they can't negotiate the best price on the home for you.
  • August 31 2009
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Hey Tom, I tried to write it all out for the guy to end it all. It is so much harder now a days. And more expensive to be a Realtor. In my area though on a good note we've been seeing signs of improvement, the market is holding and even up a bit. There's only maybe 2% of the homeowners trying to sell on their own. I can only assume it's because our profession in my area is being recognized more these days. Best of Luck to you Tom in your area and if you ever find yourself in Jersey look us up!
take care
Lisa
  • March 20 2009
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Lisa, you touched all the basis,  This year I have spent more in real estate than I have earned.  So I am not sure where he gets the easy money aspect.  It is hard work to be a realtor.  I spent all day yesterday previewing a homes, so I could spend two hours today with someone that may want to buy a home.  $60,000 commission check????   Wheres he coming from.  My largest check after expenses was $7000 and involved around 160 hours of labor and $2200 in advertising expenses. 

It takes a lot more than a few hours training also,  I have been to over 180 hours of classes this year.  My license renewal, lockbox fees, organization fees and signs, I spent $32,000 so far.


  • March 20 2009
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Tom, i should of read your reply before undertaking the long response. but I felt compeled to do it. but i'm done now that took way to long and I have ads to run for clients paying commissions , damm now i'm up all nite. thumbs up on your answer by the way!
  • March 17 2009
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I wanted to be a Broker because I wanted to own my own office, which affords me the opportunity to earn more, But it also comes with greater risks because I am responsible for all the expenses also I control my own ads, my own way to doing things. We found out long ago that joining a more corporate type office was not for us. I don't knock them it's just not for us. We have more flexibility this way on many levels. I hope this finally answers your questions and clears things up a bit.
  • March 17 2009
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$3000 to $45000 for print ad, in addition to the Internet which takes time to produce marketable ads. Small monetary spending such as listing fees, internet costs, signs, etc. now more time and effort, staging , showing and scheduling the home, open houses, if any,offers, contracts,changing ads,inspections, appraisals, dealing with the mortgage and in some cases helping iwth the morg.paperwork,walk thru's,lawyer issues, negotiating any problems that arise,& the closing, and so much more depending on thehomes' specific needs, why then do Realtors spend time, effort&money on a property which may not sell? Because it's the nature of the business & it si the way we make contact for othe cliental. Of course our goal is to price it properly, market it effectively because no business wil survive without income and quality service. That is a break down of houw we generally conduct business. As to your concerns over commssion, perhaps you might engage a Realtor with the proposal that you would reimburse them for all advertising costs related to your property in exchange for a lower commission?

  • March 17 2009
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Risk&Reward JREA, $60k is a lot of cash to sell a house, if $60k is going to only 1 sole Realtor. Most times it's split 4x's between Agents & Offices. We're self employed so paying our own taxes also applies. Realtors do not sell every house they list, I WISH!
Some reasons they don't sell are, overpricing,marketing,odors,mess,out dated,and the list goes on. We're left with no commission and advertising cost. so what we deal with in fact is calculated risk.That the cash spent on ads brings a return to the listing agent. I personally spent far more on a few listings then I made in return. In today's market I firmly believe is much harder than ever. It requires skills,talent, and knowledge beyond the normal expectations of the old days. These skills I and my Husband have. As I'm sure others do as well. If a Home is in the higher end bracket like yours, I can tell you without a doubt advertising and marketing would be much more extensive and costly by far than the average home.  Here's a very rough example of the expenses  involved with the average home. this is only for my office not any other as they may differ from ours. Average days on market currently 140 days unless overpriced etc.
  • March 17 2009
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Profile picture for jrea3000
Specifics. Come on! OK Lisa, I'll take you at your word that you have trained hard. Good for you. Most Realtors get into the business with a few hours training to get a license. It's nice to know someone is serious about it, and I admire someone who goes beyond the basics. Just wondering-do you make any more money as a Broker than the typical Agent? If not, why not? But I would like to know how that training results in service to me, the guy who pays the bills.

Can anyone answer the question I have repeatedly asked?

What makes your services worth $60k to sell my house? How will you market it, other than the trivial means I have documented? You don't need to know my house, that's just Realtor "mystery" working. You just need to tell me what you do that is worth $60k.

I already know the answer, because I know from experience what Realtors do (sorry Tom). While I have HAD to pay monopolistic fees in the past when Realtors controlled the data, those services are worth far less now that most of what a Realtor does is readily available online. You can say that I don't know what I'm talking about, but I've hired Realtors enough times to know exactly what they do and do not provide. And what it's really worth.

And geez Tom, how do you know how hard I work or for what pay? FYI-I know of a LOT of IT guys that became Realtors during the 2001/2002 IT crash. Now just what is it that made IT guys think they should go into Realty? EASY MONEY of course. You'd like me to believe that because you work long hours, I should pay ridiculous fees. What are those hours worth to me? Or should I pay for long hours because, well, you have to work them?

I'll make this thread short. Either tell me EXACTLY what you do to market a home that is worth $60k in fees, or let's assume you can't and end the discussion.

Thanks
  • March 17 2009
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Lisa and Connie, 
Jera3000 would not like anything we say.  There are CEO's that make Millions every year.  I work for my clients on average 70 hours per week in real esate and hope to make around $60,000 per year.  I guess he thinks we sit back, run a few ads and make CEO pay.

Personnally, I worked less hours (40 hours a week) and the work was not as hard as a software engineer for Micron Technology in Boise, ID.  I was laid off and software engineers are a dime a dozen here.  So I went into real estate.  Now I work more hours for my clients, make less money and have to put up with people like Jera insulting my new profession.  Very frustrating.  I know he would never work as hard as I do, for the low pay I make.

If it is so easy Jera, why don't you quit complaining about agents and become one.  That way you can see what we do.

  • March 17 2009
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Connie your right I let Jrea get to me a bit. It happens. You and I and rest of industry knows how hard it is now a days to do our job.
  • March 16 2009
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fees are negoicable... speak with 3 top listing agents in your neighborhoood... and don't bother with jera3000 has no idea what they are talking about...

  • March 16 2009
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dammm Jrea, In order for me to become a Broker and a Broker of Record at that, I had to complete 3 yrs of being a full time Realtor and have a recomendation from the current broker I was employed with. In addition I could only work another job if it was less than 20 hours per week. My mother was a para legal for 45 yrs. and I can tell you Yes I can be put up next to a lawyer in comparisim to real estate. I have mild experience with the law and need to have it as a Broker of Record. I help yes help homeowners in my spare time in any way they need such as their mortgage issues free yes you read right free. I have a clean record of nearly 18 yrs in the business and it is a business. I am just as worthy as lawyers.As for my marketing a home no one can answer that unless they view the house in question it's very detailed each is different.  back to the schooling involved. 90hrs is just for a tradional real estate agent. Brokers 150hrs. plus 3yrs full time apprenticeship if you will in addition to manditory classes. i in addition did 80 hrs.continuing education.and 5hrs.additional every week for 10yrs. I'm thinking your attitude with realtors is more personal than anything else. ???

  • March 15 2009
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The short answer is Yes. Commissions are negotiable.

Much of what you are paying a listing agent for is marketing. Find out exactly what marketing is going to be done, and make sure the agent can tell you what makes their marketing plan successful. So much of real estate marketing falls into the monkey-see monkey-do variety. Don't settle.
  • March 15 2009
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Profile picture for jrea3000
Oh my goodness graceous Lisa. A Realtor will negotiate FOR you? Neither side of the table is interested in getting the highest price for the seller. Both Realtors are interested in getting the deal done, and if negotiating to a lower price does it, that is what they will do. See my earlier comment. If you "negotiate" $50k lower, you cut my assets a huge amount, but your commission very little. No Realtor is interested in negotiating the highest price, it puts their commission at risk.

Let's see, it takes what, 90 hours study, to get a Realtors license. And you put that in the same paragraph as a lawyer that took two years of post-graduate study to get a license? I'll take a cheap lawyer over an experienced Realtor any day. Realtors are sales people, plain and simple. Even tangentially putting a Realtor next to a lawyer is absurd. 

The examples you site of cut-rate Realtors were in a different reality. Over 40% of the homes sold in the major city near mine sold last year in foreclosure or short. We all know how concerned the banks are with cost, they're just trying to dump the places as fast as they can cost be damned.  Do you really think real people who are losing equity daily will continue to pay outrageous fees for very little actual service?  There is a huge opportunity for those low-rate companies right now.   It is coming. The market will no longer continue pay high fees for low value-add services.

And STILL no one has been willing to specify exactly what they do to "market" a home, other than what I have listed already which is not worth 5-6%. Clearly, Realtors prefer to keep it a mistery, and just keep quoting the same old generalities about "experience", "service", "marketing" etc.
  • March 15 2009
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Jrea, An experienced negotiate will make me more money in the end so why not give a little to get a lot.If you were in big trouble with a legal issue would you want the cheap lawyer to do a so so job. or would you pay the big bucks for an experienced, knowledgeable Lawyer?. Isn't experience and knowledge equivalent to seniority and the like? Wouldn't you expect to have pay increases or climb the corporate ladder if you deserved it? Realtors only get paid when they produce a result .Demeaning a persons value in any industry shows a lack of appreciation for anyone's worth. Industries that have tried to under price the competition and or standard market pricing and most times fall victim to a lack of cash flow to provide professional service to the their clients. YHD & Fox tons one in the same company is a clear recent example of this.The famous 2 % commission  leaving their customers with the majority of responsibilities to complete the sale&showing of their property. Even in a booming market this business failed & failed horribly leaving a class action law suit, filing for bankruptcy & then changing the name from YHD to Fox Tons.& doing a repeat of same. they had over 10,000 law suits from buyers & sellers for lack of service etc. In today's current market conditions the banking industry facing huge losses daily still see the value of realtors & pay fair commissions for the sale of the properties. general 5%

 

  • March 14 2009
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Jerea,The Internet has made the industries job more complicated.Most of today's buyers see far more houses then they did  3 yrs ago.I've heard the same story many times from different Realtors, Buyers are shopping not only for homes but for Realtors, thinking that the more Realtors the better. So not True. To say it's made our job easier is just an In  correct statement. Our job is becoming more costly with advertising, fees,education,etc, I've found that the term Buyer's Burn-out largely applies now a days. My home is worth over a $1mil&should I sell I'd gladly pay 6%  I know the cost in running ads and higher end homes can take longer to sell. If the home is on the market more than 3 months the costs are threw the roof for ads. If the home is priced to sell then I would consider lower a commission. I've done it, I usually take off 1 percent I would want the best agent the best ads & the best negotiator to list and or sell my home and I would pay for that experience and knowledge. I continue on next comment…

  • March 14 2009
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bump
  • March 14 2009
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your PLAIN AND SIMPLEanswer is:


ABSOLUTELY !






  • March 14 2009
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Sorry for the poor formatting below. But I can't seem to get "edit" to work.
  • March 14 2009
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Tom-I'm saying that based on what Realtors provide, you ARE Maaco, Kmart and Wal-Mart. C'mon, no more generalities. Tell me specifically what you provide to "market" a house, beyond what I've already listed--which is not worth 5-6%. My house is worth $1MM or there abouts. What do you provide for your $60,000? OK, I'll pay your $2,000 expenses, but how about reasonable fees of say $5,000, which seems fair given the services provided. Seriously, what do I get for my $60k?

Lisa-people are getting paychecks renegotiated all the time. But more to the point, what Realtors USED to provide justified their fees. Realtors controlled access to the MLS. They had to know the market because the MLS didn't give much detail. They had to actually go down to City Hall to get sale price information. Now all that information is freely available online. They used to have to drive people to endless showings, but now the research to narrow to a short list of houses can be done online. All available without a Realtors involvement. But Realtors have yet to lower their fees to reflect the reality of actual value that they currently present.

In macro economic terms, the Realty industry used to be monopolistic competition.It didn't have to lower its fees to meet the new reality of the value provided. But due to the current long-term issue of too many realtors and not enough clients, and technology changes, the industry will become purely competitive. And fees will come down substantially.

Roberto-you are a good man and a realist. I wish you well.

But I think most Realtors are either dillusional or simply dishonest about the value they provide.

  • March 14 2009
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if you were a client buying with me as well as selling, I'll reduce the listing commission. If your home is in my neighborhood I'll list for less... so there agents out there who will reduce commissions and provide the same service.
  • March 14 2009
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I was going to respond to your question in length however Tomashworth said it for me. I agree with Tom 100% just would like to add that if you work at your job for 40 hours a week would it be ok if your boss then negotiated your paycheck with you?
we are professionals and for alot of us its our full time career we work hard, spend money, and offer our expert advice. sometime it takes months to never to sell a single home we already take the chance of being paid zero. It's a career choice that few understand it's worth.

  • March 14 2009
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Heh, heh,   Sure I'll sell your home for 1%.  You put up your own signs and fill out your own paperwork.  Just send me a check when the sale is completed.

You get what you pay for.  Go to the Maaco and get a cheap paint job on your car.  Go to Kmart and buy your business suit.  Go to Walmart and get cheap tires on your car.  You still get the paint, the suit and the tires.  Right??

I have rather have the piant job on my car that looks great and last a long time.  I had rather buy a business suit that won't fall apart the first time I wash it.  I had rather not put my family safety second and drive around on tires that get no traction on wet roads.

Same thing with discount agents, you get what you pay for.  If you want someone to market your home to it fullest, that cost money.  On average it cost me over $2,000 per home just on avertisements, virtual torus and other marketing.    Do you think I am going to invest that much if my ROI is not going to be very good?


  • March 14 2009
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Profile picture for jrea3000
I answered this some time ago, and yet only one Realtor has responded. And at that with only the suggestion to pay the Realtor as much as you can.

I'd really like to know what other service Realtors provide "Marketing" your house. I've bought and sold five houses over the years and never seen any more than the items I've listed.

Please, Deby, explain to me how Realtors "earn every penny" selling. I do agree that I have worked Realtors really hard BUYING a house, driving us around for hours, but that was before you could do all the research you need online before visiting any houses. I don't even see the value provided in buying anymore, other than getting me in the door to look around.

Realtors do do a fairly good job as the non-emotional intermediary during negotiations. Pretty good pay for a couple hours work. Personally, you can probably imagine, I have always thought that Realtors were the most under-worked and over-paid monopolistic competition in existance. With the ready availability of information online, I'd like to understand why Realtors think they are worth so much now days.
  • March 14 2009
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