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My mother is 78 and is selling her home. The real estate co. is charging her 6%. Should it be 3%?

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January 31 2011 - US
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I think 6% is correct, and split between agents, it is 3%.....
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February 24 2012
Technically we are not supposed to discuss commissions as they are negotiable. 6% is normal. If the house is really expensive 5 %. offering out 2.5 percent to a buyers agent vs 3 percent may be a little motivation to get people through the door. If you need to drop the price you may want to negotiate the commission.
Some agents feel discount brokers cheapen the industry and provide limited service to save on costs. Before I was an agent I was always glad to pay a reasonable commission to my REALTOR
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March 26 2011
Brokers discussing what a "normal fee" is, in many states violates the law. It could be argued that they a in collusion and price fixing. I will gladly speak to the process though, to help clear it up. The list g agent will negotiate with you a BROKERAGE FEE. This is entirely negotiable, and a firm is free to charge whatever they wish. This can be a percentage of the sales price or a fixed fee or even a combination... When the home is sold, the listing broker will pay the other broker a COMMISSION. This is typically in the MLS as an offer of cooperation. The amount offered is not and should not be fixed. It is up to the seller and listing broker to determine how much the co-op broker will be paid. I hope this helps, and please, brokers here, remember that discussing fees can possibly land you in hot water.
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March 22 2011
Realtors, this story is for you.

About 15 years ago, I was asked by my daughter's soccer coach to help them out.  They had a small condo and wanted to buy a much bigger home.  But they had a lot of debt and were having difficulty qualifying with their debt-to-income ratio and not much equity in their condo, so nothing was getting done.

I had to spend a few days on a "Rapid Resolve" to improve their credit, then I worked up a "Purchase/Consolidation" loan, an 80/30 (yes, 110% financing) that paid off all of their extraneous debt at the purchase closing and got their DTI down to a qualifying level, enabling them to sell their $100,000 condo and buy a $250,000 home.  The clients were delighted with the outcome.

Their realtor friend, who made her split on both the purchase and on the sale (3% of $350,000), neither of which would have happened had I not been creative, had the audacity to complain out loud at the closing about my 2% origination fee.
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February 25 2011
I find an increasing rise in discount real etate services. Many professionals that work with upper-middle income clients all the way to the super wealthy, and these clients are charged no more that 4%, 2/2 Split

6% commission are no longer an issue when you can provide quality service by utilizing the new and technologically advanced solutions. Solutions like panoramic upto 360 degrees.Unlimited picture files, MLS compliant virtual tours, and a website that can capture leads and also allows the viewer to print their own flyers. You could add blueprints, mortgage documents, old inspection reports all on 1 website dedicated this property.

I have recently created a 5 part video presentation of a little program we call the Edge Listing Program.  Your clients will love, especially when you show them the site on your first meeting. Be sure to use Seller Presentation site build just so you can pitch your strategy to the Sellers in one cohesive site.

Check out the videos on [link removed by moderator] . Remeber it comes in 5 parts and it totals about an hour.
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February 16 2011

Six percent is a fair commission if the house is priced at $50,000 or less.

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February 15 2011
The fee once the propery sells is usually 6% total.  There is 3% to listing broker and 3% to selling broker.  This is all negotiable.   
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February 15 2011
Profile picture for Pasadenan
sell your home

(How listing a house for sale really works).
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February 14 2011
Six percent is ridiculous! Agents now do 1/5th of the work they used to do and selling prices are higher than back in the 80's, yet they still get paid the same percentage. In the age of loan officer compensation being under fire, it's an outright insult that agents are still getting paid this amount for doing virtually nothing. Consumers shop for homes on the internet, do much of the research and the agents still act as if they deserve this fee. It's a joke and I have no idea why this prehistoric ritual remains.

You can hire a RE attorney for a few hundred bucks to do the paperwork and you can sell the thing yourself!  
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February 13 2011
The 6% fee is likely being split between the listing and selling broker.  The listing agreement your Mother signed should specify what percent of this fee is being paid by the listing broker to the cooperating buyer's broker.
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February 13 2011
Well  like all others on here I will say the same 5-6 % is the going rate, Even though you might be paying 3-6 percent you need to be priced right other wise allot of time can be wasted.

GL.
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February 13 2011
Profile picture for Dunes....
I also wonder if it's accurate for Agents to keep tossing this out?
"It is split 50/50 between the listing company and selling company"

Not tryin to bash just wondering if the 50/50 split is THE Split in most cases between Listing Agent and the Buyers Agent/Agency especially in the Current Market....

Seems like a lot of Agents comment about Listing Agents should offer 3% or more to Buyers Agents and take 2.5% or less as their side of the Split to ensure their Listings are shown to potential Buyers
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February 05 2011
there is no going rate. If there were that'd be price fixing, a violation of the law.


I think many of the full service brokers are running about 5% to 6%; some of the discount ones are less. Some of the agents then supplement it by adding  in extra commission by calling it an "administrative" fee.
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February 05 2011
Profile picture for Dunes....

Commissions over Time from the Department of Justice Web Site

Brokers typically charge a commission based on a percentage of the home's sale price. Over the past decade the average commission rate has remained relatively steady between 5.0 and 5.5 percent.
DOJ
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February 05 2011

Six per cent is the normal commission for home sales. It is split 50/50 between the listing company and selling company, that would make it 3% each and probably what you were thinking. The rate is determined when the Selling Agreement is signed.

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February 05 2011
6% is the going rate and we realtors work our tail off to earn it. When I had my personal home for sale I even added a $1,000.00 bonus to the selling agent as my area had so many similar homes I thought it would be a good incentive. Less than 30 days later we had had over a dozen showings and a full price offer in hand!!
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February 05 2011
I have always know for the fees to be 6%--  and it is split between the agents, 3% each -- but it is negotiable....  6% sounds right.
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February 05 2011
The 6% is the commission, however their usually is a split between the selling agent and the listing agent, around to 50%. 
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January 31 2011
All fees are negotiable.  The norm in our market is 6%.  There is 3% to listing broker and 3% to selling broker.  In some instances the sellers can offer to pay more as an incentive to sell the property quickly. 
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January 31 2011
You are correct, the 3% that you are referring to is for selling agent and there is another 3% for the listing agent.  as Joan mentioned, all commissions are negotiable.  many agents may pretend that they have to offer 3% to the selling agent to make sure other agents are motivated to bring clients to view the listing.  one way to get away from this is to ask for a % refund from your listing agent if the house is in pretty good condition and would sell easy.  after all, you are giving him the business and he shouldn't mind sharing part of his profit with you
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January 31 2011
All commissions are negotiable.  If they refuse to do it for less, then maybe she (or you) can shop around for another agency.

Or is the contract already signed?
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January 31 2011
Profile picture for wetdawgs
Six percent commission is pretty typical.   Usually 1/2 of it goes to the selling agent and their brokerage, and 1/2 goes to the buyer's agent and his/her brokerage.
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January 31 2011
 
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