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- real estate mike
- Contributions:2001
different brokerages are different on commission. pick the realtor you find most professional who you can communicate with and negotiate the listing fee. best of luck
- Art baghdasarian, "anahid1"
- Contributions:22
higher the price of house lower the commision/ 4.5 % total commision for a above average house is ok as long as buying agent gets 2.5% of it, art
- Richard Schulman, "RichardSchulman"
- Contributions:2108
Offer 2.5% to the buyer's agent. You need that to entice a buyer to come to your home. How did you come up with the number? You'll be able to find an agent who will take the listing. Especially if it is priced to sell.
Richard Schulman
Keller Williams
Richard Schulman
Keller Williams
- mnmlod
- Contributions:18
I my experience, the higher the price of the house or property the more negotiable the commission. If it is your standard tract home, you should be looking at 6 or 7 percent.
- Greg Cook, "Greg Cook"
- Contributions:119
Selling in this market, unless you absolutely have to is costing you more money than the difference in commission you might pay.
If you are in a distress situation and have to sell quickly, do you want the cheapest broker or the one who will do the most to get you out of a tough situation and perhaps get you a higher price?
Don't forget you have a lot of competition in the other homes for sale in your area, and many more to come. If you are offering the lowest commission of all the homes for sale, how would you feel about your competitive position.
In short, the commission you pay is a business decision you have to make in a very competitive market. The decision you make regarding the commission is yours alone and depending on your personal and financial situation will have an impact on the resolution.
Good Luck!
- nealadler
- Contributions:199
All commissions are negotiable of course. However please bear in mind that if you offer only 4.5% the buyers agent should be getting at least 2.5%, anything less many agents may not have an incentive show your listing. If that's the case that leaves only 2.0% for the listing agent. Out of that 2% the agent has to split that with the broker anywhere from 20% to 50%. The listing agent has advertising costs, and other fixed costs of doing business, MLS fees, association fees, and so on. When all is said an done if the listing agent gets only 2% after the broker split and expenses that doesn't leave much left over. Another thing to bear in mind there are many foreclosures out there. Most are listed at 6%, and the selling agent (the buyers agent) gets anywhere from 3-3.5%. If an agent has a choice in showing two properties about the same price, condition and so forth (notwithstanding both are what the buyer is qualified for and is the type of home they want) and one is offering .5% to 1% more one doesn't need to be a rocket scientist to figure that one out. The last thing you want to do is scrimp on the commission. You always get what you pay for. Lastly, if the listing agent is not able to negotiate a fair commission for themselves how will they be able to negotiate the best deal for you?
- Jeff Konstant, "jkonstant"
- Contributions:1970
Two broker friends of mine in California have recently told me that there is downward pressure on the listing side of commissions. Many are now accepting 1.5% as a listing side fee while offering the buyer's side 3%.
- Laura Chaney, "LauraChaney.com"
- Contributions:33
Only if you want limited exposure. In todays market, Buyers have so much to chose from. You want your agent to work hard for you. If you really want to sell quickly, offer 7%.
- Showcase Twins
- Contributions:69
If your broker has qualified buyers and is providing tours of your home until it is sold it should be higher.
- CulverCityRealtor
- Contributions:455
Commission rates are generally much higher then that.
- Jeff Star, "ShortsaleAgentofAZ"
- Contributions:967
Agents stop cutting your fee next you'll be doing it for free. Never go lower then 5%. Always pay a buyers agent 3%. 4.5% total is not realistic there is to much work an cost involved to be listing a house for 1.5%. I guess if your desparate for work you'll do it for next to nothing. People look at it as you get what you pay for. You want a cheap listing pay a cheap price. Discount listers hurt our business.
- NTETS, "Mr Caveat"
- Contributions:6436
there is a saying:
50 bucks is 50 bucks
50 bucks is 50 bucks
- Johnny James, "Palmdale Mortgage"
- Contributions:406
it is negotiable
- Frank Bernardo, "FrankBernardo.com"
- Contributions:86
yeah its negotiable but listen. you get what you pay for. most agents can all do the same thing. they are just like a gas station or a carton of milk. it doesnt matter what your commission is your home si going to be worth what a buyer will pay. if you have an agent that is willing to reduce his commission how hard is he really going to work. if you pay the agent 6 percent 3% each side your going to get an agent that is willing to work. make sure you pick someone that is aggressive knows how to get an offer on your home everytime a buyer sees it ( I can do that) knows everything about social networking (most dont) if you need more info go to [link removed by moderator] my blog
- Showcase Twins
- Contributions:69
it is to low
- Simon Mills, "Mills Realty"
- Contributions:1858
There are some very interesting comments to your question. The bottom line is there are great agents that don't charge excessive commission to effectively market and sell your home. This is one area where you don't necessarily get what you pay for. I am certainly not desperate for business and my standard commission is 1/3 of 1% for the listing side. My clients generally offer 3% to the buyer's agent, so the total commission is 3.34%. My listings sell, my seller's save money and the buyer's agent is happy to get paid. I work on volume so this system works for me and my clients.
- Cory La Scala, "San Diego CA Realtor"
- Contributions:419
I completely agree with Simon. "Discount' listings, if you must label it, don't hurt our business, it hurts some agents' bottom line. Many agents work for smaller, more flexible brokers, who give their agents more freedom because they have much less overhead. Brokers split commissions with the agents, some more generously, so we can list for a bit less.
- Elise Timpe, "Corona CA Realtor"
- Contributions:76
Agents are like anyone else. If you get a larger salary for doing job A than job B, which job will you try the hardest for? Translated...if a buyer's agent will make much more if they sell house A than if they sell house B, do you think that could affect their actions?
Most agents are ethical and try to do the best for thier clients. In hard times, especially when supporting a family, there can be a real test of ethics when this issue comes up for an agent representing a buyer. It can be a dissadvantage to the seller.
Some Real Estate companies won't let the agents do less than a 50-50 split. That can be directly proportional to the amount of advertising done by the company vs the advertising the agent must do out of their own pocket.
These are some of the variables often misunderstood.
Most agents are ethical and try to do the best for thier clients. In hard times, especially when supporting a family, there can be a real test of ethics when this issue comes up for an agent representing a buyer. It can be a dissadvantage to the seller.
Some Real Estate companies won't let the agents do less than a 50-50 split. That can be directly proportional to the amount of advertising done by the company vs the advertising the agent must do out of their own pocket.
These are some of the variables often misunderstood.
- Victor Gurrola, "Victor T. Gurrola"
- Contributions:1190
I would have to agree with most of the folks in here, its upto the Broker and the principle.
- Vince Curtis, "SoCal Appraiser"
- Contributions:4699
Yes.
- NTETS, "Mr Caveat"
- Contributions:6436
i have never understood why the agent with the least overhead and the easiest job gets the higher commish.
buyers agents dont even really need to pay for access to the local MLS if they didnt want to...100-200 in gas and your time, thats all you are selling.
btw
THREAD IS 10 MONTHS OLD!!!!!!!!
buyers agents dont even really need to pay for access to the local MLS if they didnt want to...100-200 in gas and your time, thats all you are selling.
btw
THREAD IS 10 MONTHS OLD!!!!!!!!
- NTETS, "Mr Caveat"
- Contributions:6436
Agents are like anyone else. If you get a larger salary for doing job A than job B, which job will you try the hardest for? Translated...if a buyer's agent will make much more if they sell house A than if they sell house B, do you think that could affect their actions?
I do like that one of you actually had the balls to admit that you have the power to push a buyer in a given direction and do actually exercise that influence in whatever way most benefits YOU...
REAs do push their buyers around all the time. the one the REA is pushing is usually the one that gets an offer, why? because buyers arent confident enough to negotiate AGAINST the buyer's agent which they maintain... but you have to because buyers agents get paid to push you to buy. buy. buy. buy. they arent looking out for your interests, its about looking out for theirs and hopefully not utterly screwing the client... if it can be avoided. if it cant, well then...
I do like that one of you actually had the balls to admit that you have the power to push a buyer in a given direction and do actually exercise that influence in whatever way most benefits YOU...
REAs do push their buyers around all the time. the one the REA is pushing is usually the one that gets an offer, why? because buyers arent confident enough to negotiate AGAINST the buyer's agent which they maintain... but you have to because buyers agents get paid to push you to buy. buy. buy. buy. they arent looking out for your interests, its about looking out for theirs and hopefully not utterly screwing the client... if it can be avoided. if it cant, well then...
- Wendy Rich-Soto, "SP RE Girl"
- Contributions:24
Where in Burbank is the home located? A 5% commission is realistic for a full service listing contract. This is where the commission is split equally between the listing agent and the buyers agent 2.5% on each side. DO NOT take the advice of only offering 2.5% percent to the buyers agent and letting the listing agent keep a higher cut. Equality is huge right now as far as commissions go. But you should keep in mind that even though you may list the home for less commission, some agents won't show it to their clients especially if it is less than 2.5% for the buyers agent. While that is wrong and goes against our code of ethics, it happens. If you are in a position where you really need to sell your home, you want the best possible outcome. When a Realtor is being compensated for the work they do, the usually will go above and beyond to get you the highest price you can sell for in today's market. That alone can offset the cost of the commission. Lastly, do not forget that just because an agent makes a 2.5% commission on a sale, they don't keep that amount. The commission earned is split with their broker as well. It reduces the amount they make sometimes to 1.25% when all is said and done. Hope this helps! But you can contact me for further information.
Wendy Rich-Soto
[contact info removed by moderator]
Wendy Rich-Soto
[contact info removed by moderator]
- Mercedes Varela, "HelpUSell Van Nuys"
- Contributions:304
The commission is negotiable and is not based on whether the home is located in the city of Burbank or in a particular Burbank neighborhood.
Interview different real estate companies (brokerage firms) and decide which agent has the most experience, gives your home the best exposure (marketing), and how comfortable you feel working with that particular agent because this may be business relationship which extends for a lengthy period of time. Another factor that may affect your sales price and/or commission is your selling strategy, are you selling because you must sell (job transfer, divorce, etc.) or because it's an option and you're ready for a lifestyle change?
Best wishes.
- Trinidad Gaeta, "Trinidad.Gaeta"
- Contributions:240
If you find an agent who will fight for a full commission, you can bet they'll fight your price as well. Meaning they will be tough negotiator for you to assure you get the highest possible price for your home.
Can you find someone who will do it for less then 6%, more then likely the answer is yes. How strong are they going to be when protecting you and the price you set on the home?
Something to think about!
Trinidad
Can you find someone who will do it for less then 6%, more then likely the answer is yes. How strong are they going to be when protecting you and the price you set on the home?
Something to think about!
Trinidad
- nealadler
- Contributions:199
All commissions are negotiable. Remember the agent has to split the commission with the buyer's agent. That amount needs to be worth the agents effort. I always tell sellers if I can't negotiate a fair commission, how can I negotiate the best deal for you. In most cases you get what you pay for.
- Judy Graff, "Judy Graff"
- Contributions:119
Lots of great answers here! But to put a fine point on it, the majority of homes are listing at 5%. Some are at 6%, some are at 4%, but the majority are 5% and have been for some time.
- Pasadenan
- Contributions:21466
"find an agent who will fight for a full commission" -
According to several Realtors® on this board, it is "illegal" to state what a full commission is in a public space due to NAR misinterpretation of Federal Antitrust laws.
According to a 2008 HUD study of FHA financed homes, the nominal amount of total REA commissions is $970 + 4.5%. Thus if a listing agent is asking for more than $400 + 2% the listing agent is charging more than "full commission" for less than full representation! And several Realtors® have stated you should offer 4% selling agent Commission, so that means only $400 + 0.5% for the listing agent commission for double full service!
If the listing agent tries to argue that you need to pay them more in order to do less of a job, you know for certain that the listing agent will rip you off on the sale too, taking 9 months to sell at less than 80% of the original listed price.
If the listing agent can't be more efficient with their work, they certainly don't deserve to be paid more!
According to several Realtors® on this board, it is "illegal" to state what a full commission is in a public space due to NAR misinterpretation of Federal Antitrust laws.
According to a 2008 HUD study of FHA financed homes, the nominal amount of total REA commissions is $970 + 4.5%. Thus if a listing agent is asking for more than $400 + 2% the listing agent is charging more than "full commission" for less than full representation! And several Realtors® have stated you should offer 4% selling agent Commission, so that means only $400 + 0.5% for the listing agent commission for double full service!
If the listing agent tries to argue that you need to pay them more in order to do less of a job, you know for certain that the listing agent will rip you off on the sale too, taking 9 months to sell at less than 80% of the original listed price.
If the listing agent can't be more efficient with their work, they certainly don't deserve to be paid more!
- Bob Brenner, "GuildMortgageBob"
- Contributions:47
Depending upon your competition, e.g. other homes, sometimes a 7% commission is realistic if want to sell the house. Point being, it depends upon a number of factors, the agent, the marketing plan mix, your listing price relative to your competition, etc.
- Cyndi Lesinski, "clesinski"
- Contributions:415
I understand this was posted back sometime, but I want to put on some current figures. Commission is not a set standard amount. With the market shifts that have occurred since this posting, commissions have shifted as well. Specifically with short sale and foreclosures. The banks have been determining the commission for these listings. Typically it is between 5-6% However, recently REO's are posting 4% to the buyers agent and 3% to selling agent. This will raise the total commission to 7%. There are currently several incentives to get buyers to close on some REO's before year end. For standard listings it is between 5-6%. During the interview process the Realtor will explain what the value of service is based on the commission and the service provider. For a Short-Sale seller commission is paid by the bank who holds the loan. Thus they are the ones who determine at time of short sale approval how much the commission will be.
What is a realistic commission rate for selling a house in Burbank, CA? Is 4.5% realistic/
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