Profile picture for millermankjm

Minimum Commision on sale

Wondering if there is a minimum commision on the sale of real estate by full brokers?
  • November 16 2011 - US
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Answers (8)

Best Answer

Commission is negotiable, but it doesn't go on sale. Here's an article that may help you understand how it works: http://homebuying.about.com/od/realestateagents/qt/NegCommissions.htm

Hope that helps :)

  • November 16 2011
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Greetings.  In real estate there is no standard rate of commission.  Commission on a property is always negotiable between the seller and the Broker.  There are some companies that do have a preferred commission rate but the key to remember is that all commission, according to real estate law, is negotiable.  I hope this helps. 
  • December 13 2011
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As has been said, there is no minimum. However MANY times you will see much HIGHER percentages as the price gets really low. In my market, it would take much more work to sell a mobile home for $35K than a starter ranch fo $400K - thus the disparity in commissions. I generally always use flat rates for that sort of sale, and usually have a $2500 minimum, so it sounds like this deal is in line with how i would work.

YMMV however, and this would certainly change in other markets.

Best,
Mike
  • December 13 2011
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Profile picture for millermankjm
A property with a low asking price, under 30K, had a commision of 3K (10%) which was found to be a flat price as it did not change when the sale price was much lower at 18K (3K of 18K 16.7%).  So with this known, the buyer balked since they would be indirectly paying that expense.   The sales agent was negociable to reduce the commision to make the sale more reasonable to the seller. 
  • December 13 2011
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Commissions are all negotiable...as has been said.  The biggest thing is finding the right agent you can work with and who will be there for you.

Also, you don't always get what you pay for.  I just got a previously expired listing where the previous agent did less and charged more and didn't sell the home.  We've done the extras to market the home and have had a ton of showings in just the first week.

Good Luck!
  • December 12 2011
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There is no minimum on commission that a broker can charge. You could use a flat fee company. However don't forget you get what you pay for sometimes!
  • November 21 2011
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There is no minimum or set point for commission, nor is all compensation commission-based. In many states you may find flat-fee or a la carte pricing. In the commission world there are limited and full service, that are generally priced accordingly. There are also some places that offer rebates. I think the best way to determine what is fair in your market is to call around for pricing and what is included.
  • November 16 2011
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Profile picture for kapyarets

Commission is negotiable. Before you make a decision you need to find out that are other sellers are paying, what part from the commissions will be paid to the buyer's agent You want to be competitive on that side too. You need to know what you will have for the money, ask as much questions you need to understand how the money will help to sell your property. If you are asking to lower the commission, be ready to make cuts on marketing.

  • November 16 2011
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