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What is the going rate for selling agents. It was 5% years ago. Are they accepting less?

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January 22 2010 - Wildhorse
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Profile picture for Dunes....
What are your "Expensive" Marketing programs?
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April 26 2011
Commission varies by areas and market competition.  I always recommend you start at 6% but can reduce to 5% if there is a need to do this later in lieu of price reductions.  I don't want to lose any agents who will look at commissions before determining what properties to show (I do not do this but many out-of-area agents will).  My time and expensive marketing programs warrant the higher commission and my job is to get the home sold in the shortest amount of time - so whatever it takes and seller agrees is what I will do. 
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April 26 2011
We're accepting more, partially because homes are more difficult to sell than they were a few years ago, partially because, well, we're just open to the possibility.
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January 25 2010
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Answering the OP...

In all the transactions I've been involved in, the starting point is 6% (3% to each participating agent). I've typically negotiated a lower rate in the event of dual agency, but have not yet sold a house where I felt the selling price was high enough to warrant a negotiation on the percentages.

In today's market, it seems that 5% is something doable (2% to selling agent and 3% to buying agent), but that would depend on a lot of factors (not least would be how realistic your asking price is).

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January 25 2010
Profile picture for SoCal_Engr
I call BS...

"If I listed your property at 5% that may or may not cover my marketing exspences on your property"

5% of what selling price? I have a hard time believing that the costs involved in selling a house have a linear relationship to the selling price of the home. Granted, some properties need special handling. However, most of those have prices that reflect that "special handling" and market.

And, cry me a river over "your costs". The last house I sold, the agent showed up the next week with their new Lincoln. Everyone deserves to make a living, but I'm not buying any line that an agent's cost on a per-house basis is eating up all the profit (unless you're doing a poor job of selling).

"Also, do NOT look @ commission as an expense...but moreso an investment. "

An "investment" returns money downstream. An "expense" is the cost of doing business. RE commissions are an expense. Hopefully, I am a smart consumer, spend wisely, and get the most/best service possible - but it's still a "cost of doing business"...an expense. If I want to avoid that expense, I can try FSBO, but then I have to evaluate (a) how much my is worth, and (b) what are the possible ramifications (i.e., different category of buyer, more effort on my part, etc.).
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January 25 2010
I am a strong advocate for Melissa's reasoning.  The current market has so many listings, that you need to make your listing stand out either to Buyers or Agents!  If you choose to market to Agents, giving a higher commission can only help your chances of getting the right buyer in your home!

I will NEVER push a buyer to buy a place that pays me more, but if there are 2 properties that are alike and one pays me a full 1% more than the other, you better believe i will @ least show the property.

It all comes down to numbers.  finding the right buyer is never easy, but the more showings you have, the better your chances are of getting that right buyer.

Also, do NOT look @ commission as an expense...but moreso an investment.  I am sure you can find Agents that will take less than 5% commissions, but do you really want someone like that selling your biggest asset?  People only take less on commissions because they should.  The best agents can ask for 6s% and deserve them because they get the home sold quicker @ an higher prices.

Saving 1% on a commission might cost you 4-5% on the sales price!
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January 25 2010

ok first of all there is not "Set Rate" price fixing is illegal, dont let an agent tell you going rate or typical rate, big no no. I am willing to work for no less than 5.5% but at 6% I will fully market your home.Heres how it works for you bottom line. If I listed your property at 5% that may or maynot cover my marketing exspences on your property I get half of that 5% split between Listing and selling agent, my broker takes 30% of that off the top. Another thing to consider is If I under cut the commission and a buyers agent sees that there cut on your property is 2.5% vs 3% they will not show your property. So it sits unsold, your not saving anything. It is better to list a little his even, say you listed at 6.5% your listing agent agrees to only take the 3% and offer 3.5% to the buyers agent your property pays out higher than the rest it sells quicker.

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January 22 2010
Profile picture for sunnyview
The last house I sold in CA was a total 6% commission. 3% to the listing agent and 3% to the buyers agent. You may be able to negotiate a little bit, but you want to make sure that you don't lose buyers' agents interest or quality marketing from your listing agent in the process. 

Since you're in Davis there's just one more thing...Go Aggies!
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January 22 2010
 
Related Questions
What is the going rate for selling agents. It was 5% years ago. Are they accepting less?
Profile picture for Dunes....
Latest answer by Dunes....
April 26 2011 | 8 answers
  • Asked by mborunda
  • In Pricing
  • January 22 2010
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