Profile picture for zerine

What is the going rate for commission for Realtors. or what is the cost of selling your home.

I would like to know what is a normal fee for the agent to sell ones home.
  • November 11 2010 - Thornton
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Answers (21)

Best Answer

Profile picture for Blue Nile
First; if an agent tells you that they don't know what other agent's are being paid, you don't want to do business with them.  The % commission for the selling agent (buyer's agent) is listed in the Multiples, and requires very little math skills to give a statistical response; and most listing agents (seller's agent) are not going to accept being paid much less than the selling (buyer's) agent for the same transaction.

Second, if someone insists on telling you that you have to pay them what they ask because "you get what you pay for", you also don't want to do business with them, as first, that means they have no negotiating skills and are not willing to negotiate; and second it means they are likely inefficient and lack innovation.  (If people get what they pay for, then why do people shop sales and discounts, and clearances, and why do homes on the average sell for 5% below "list" price, and why are most manufacturer's "suggested retail price" or "list price" about 1.5 to 2 times the nominal street price?

No; amount of money has never determined quality of work nor honesty.  You will need to evaluate both of those separately from the discussion of fees.

HUD produced an interesting study in 2008 of FHA financed homes.  All home purchases in the US that are financed have to have a HUD-1 form filled out and turned in to HUD, which indicates commission fees for both buyer's and seller's agents.  This is a government form; they can't legally cheat on it.

The results of the study is the nominal amount for REA transaction fees is $970 + 4.5%.  So that is where you should start your negotiations.  As for the splits between the Listing and Selling representatives; you need to carefully consider the impacts and discuss that with your REA once you have selected one.  As for split between the Listing agent & their Listing broker; and the split between the Selling agent & their selling broker; that is between the agent and their broker; but it is good for you to discuss that upfront with your potential agent to know if their fees will be sufficient for the advertising expenses that you expect them to put out.  If they tell you it is private and none of your business, they probably are not going to be very communicative with you during the transaction either.

As for total transaction costs for buying and selling; they run closer to about 10% to 16% due to cleaning, staging, financing, inspections, termite report, corrections, recording, title transfer, escrow, appraisals, etc.  Don't get fooled into thinking you can make a profit on flipping with just a 10% increase from when purchased.
  • November 11 2010
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for sunnyview
"We need ans. To the question % rate for realtors in Bredonton Florida"

There are no set real estate commissions by law. You can negotiate any commission that an agent will accept. In my area, the commission rate I usually see offered by FSBOs ranges between 1-3% and the commission rate I see listed in the local MLS for agent is most often between 4-6% to be split between the seller and buyer's agent.
  • May 31
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for acedl
We need ans. To the question % rate for realtors in Bredonton Florida
  • May 31
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for Blue Nile
Only the selling (buyer's) agent brings a buyer to a house.  The "listing" agent is responsible for ADVERTISING the house, and for representing the seller.

Only the seller can dictate what will be listed in the multiples for the compensation for the selling (buyer's) agent.  Some say 4% for the selling agent and broker to get the agents to show it first.  But it doesn't always work that way; most agents look to find what meets their client's criterion and what they can close quickly, not at how much commission they will get.

As for the "listing" agent; the first thing you want to check before even beginning to discuss fees is whether the agent is honest, or whether you see lots of inconsistencies and half-truths.  And the second thing you want to check, still before discussing fees, is their total average days on market for all their listings over the past 3 years, and what percentage were taken off the market without selling.  If their average days on the market is over 6 months, you definitely don't want them representing you.  Ideally, you want their average to be 3 months or less.  That alone will tell you whether the agent will work effectively for you or not.  But you also want to check the ratio of "sold" price to seller's desired price.

Fee negotiation only begins after you have screened and filtered the potential agents for these other criterion.

As for Biller; the HUD study indicated that total REA fees were as high as 16% in some cases, so Biller should pay 16% fees and leave his home on the market for 5 years before getting any offers.


  • November 12 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for biller1161
I'm a owner in Surprise, AZ area looking for a listing agent.
I must tell each of you as I read your comments. It is scare what I see....an agent that had negotiated a lower commision would probally not even bring a buyer to this house but to the other house which he /she has a high commission....
  • November 12 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

How much an agent charges should have direct link to how much exposure your home will receive. The more people that see your house the better your chances are of selling it. Find out exactly how that agent will market and advertise your home and how he/she will get your property seen by potential buyers.
  • November 12 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

AGENT: I'M ALWAYS WILLING TO NEGOTIATE IN THESE ECONOMIC TIMES MANY SELLERS ARE HAVING TO BRING MONEY TO THE CLOSING TABLE.
  • November 12 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for Blue Nile
"unspoken but expected commission" -

If you are going to call it "expected", you might as well have set it in stone, and thus there is no reason for you to keep silent about it.  It is clear that you mean 3% listing commission + 3% selling representation commission.  That is what most agents "expect", and that is what the customer "gets" if they don't know they are supposed to negotiate it.

As for federal anti-trust laws... the exact same laws applies to every business in the U.S.  (except for non-profits, and some utilities that are regulated differently).  There is nothing in the anti-trust laws that specifically refers to agents nor real-estate.  Even the case law does not single out agents.  Sure, there were some abuses by some local chapters of the National Association of Realtors decades ago, which is why the "training manual" warns against such things, but disclosing one's fees and having a discussion on range of fees offered in a region or in general is not "price fixing".  The case law is extremely clear.  If disclosing fees is an issue, then why not prosecute the fast food hamburger industry?  Or trucking companies?  Or shipping companies?  Or Architects?

The problem with Nathan's post was not that he disclosed his fees, but that he provided a self-promotion link in violation of Zillow's terms of use policy.  Zillow appropriately removed the link to correct the problem.
  • November 12 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Federal anti-trust prohibits any formal "normal, usual, etc" commissions. Reality is if a seller or their agent doesn't offer the same or more than the the unspoken but expected commission, their home will get few showings. The commission is ALWAYS the first thing a broker looks for when picking homes to show. As a buyer, make sure your agent shows you homes from other companies. With a cornucopia of agent competing for fewer sales some offices have an unspoken rule that their agents show the office's listing first before showing any other listings. Re: rates. Competition and the efficiency of the internet is driving the cost down, and will continue to do so. What used to be 7% can now be had for 4% and even negotiated by the hour if one has enough expertise to do some of work. A big change coming is lawyers using the state real estate commission papers and competing with Realtors. A site like MLS is being developed for them.
  • November 12 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

While there are no "standard" rates for Real Estate brokerage--in fact, there are all kinds of laws against price-fixing in the State of Florida--one could look at the standard rate that lenders are allowing on foreclosed and short sale homes--they regularly approve 5% to a one-agent transaction, 6% to a two-agent transaction.
  • November 12 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for SeattleHome.com
90+% of homes on the MLS in Seattle are selling at 3% to the selling office, so they're likely 3% additional to the listing office.  There are plenty of other rates, especially for luxury homes, but 6% total is by far the most common rate here.
  • November 12 2010
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for JarydRuffner
Thank you Victor.
  • November 11 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

No matter how sad the reality it doesnt change it. I wish it wasnt true but Jaryd makes valid points.
  • November 11 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for JarydRuffner
Dan, I agree with what Realtors should do, but when selling a home it is important to understand what some will do. If four homes are very similar and a buyer wants to see them, it is common for the agent to setup appointments to show them to their buyers. If the agent chooses to show the higher paying homes first, that is entirely their choice. I have taken buyers out numerous times when they really liked the 1st or 2nd home on the list and decided to make an offer without viewing the rest. Agents in today's ecomony are selling fewer houses than in years past and are faced with the fact that many homes take much longer to close. Median sales prices also continue to fall too which means lower commission amounts since commission % havn't gone up. What you are arguing makes sense in a "perfect world" and I personally don't look at these figures when showing clients, however I know dozens of agents that do. Desperate times call for desperate measures and if a seller wants to sell, it is important to understand that not all agents are Realtors and not all Realtors follow the ethics they are supposed to. That is all.
  • November 11 2010
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for the_country_hick
Jaryd, " If your home has a lower commission than others around it, which one do you think agents will take their buyers to first?"

Isn't a realtor ethics bound to look out for the best interests of their client? Doesn't that mean they are ethically bound to find the best house for a client not the best commission for that realtor?

If a realtor takes their oath seriously shouldn't the % on a listing not matter? Or are you saying that all realtors really just look for the biggest commission they can get and no buyers needs or preferences count?
  • November 11 2010
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for JarydRuffner
Keep in mind that the commission gets split 4 ways. Listing Broker, Listing Agent, Selling Broker, Selling Agent. Commission amounts are also advertised to agents in the MLS as an incentive for selling agents to bring buyers. If your home has a lower commission than others around it, which one do you think agents will take their buyers to first?
  • November 11 2010
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for Bette Defarm
Just curious: What is it worth to you?  IMHO That alone should determine what you pay for the service. Always Negotiate and get it in writing.
  • November 11 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

For the record - (legally) there is no "rule of thumb", there is no customary, standard or usual commission........stating that would be against the Sherman anti-trust laws. Agents who don't understand this need to read up on the laws and check with the real estate commission in their state..

Zerine - All real estate commissions are negotiable.
Speak to a few agents, and see what they will charge for their services. Find out specifically what they wil do to market your home.
There are a variety of full and limited service agents out there - see what the right fit would be for you.

Best wishes...........
  • November 11 2010
  • 3Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

It depends on if you want some or all the services of a Realtor.  If you hire an attorney, if you get a reissue rate for title, if you pay for a part of your buyer's closings costs, if you include your moving costs....

I say rule of thumb - 6-8% could be as high as 10%
  • November 11 2010
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for James Sanson
I wish there was an answer for this, but this would be called price fixing. There is no normal fee for an agent to sell a home. Each home  and each market yields a certain dollar amount.

What I have learned in life you get what you pay for. Some agents will list a home and not even put a sign in the front yard, and others will invest top dollar to sale your home.

I would want as a seller to know what is the best way to maximize your profit. Having an agent do it for 1%, 2%, 3%, 10%, etc will yield a profit based on the amount of advertising, marketing, and experience.

I hope this helps
  • November 11 2010
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

 I charge 1% or 2% depending on the level of marketing you need.  In addition, the seller pays the broker co-op fee which is used to pay the broker who brings a buyer - the co-op fee is generally 2.8%.  You can learn more about the difference in my marketing plans here: [link removed by moderator]
  • November 11 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.