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what is real estate commission rate?

  • May 09 2013 - Telluride
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Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

 
 

Answers (14)

Profile picture for Ezekielella1
Good luck! You will put a lot of time into it. Pay the percentage and get the property sold..
  • September 28 2014
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Profile picture for 808rhb
I am selling my home and farm for 849,000.  A six percent commission is $50,940.   A very nice home nearby without the land sold for $575,000. The commission there was $34,500.  I can see no justification for the additional 16,440.   The 6 percent fee  unjustifiable.   The advent of internet marketing makes it even more so.  I will go with a fee for services basis and a flat fee real estate attorney and save very much.
  • September 27 2014
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Profile picture for Ezekielella1
We are worth more than a 6% split. But, that is what the ole timers have set in place.
With that being said! They are negotiable and you get what you pay for.....
  • August 27 2014
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It is a negotiated amount.  Historically real estate commissions were paid because having a broker was vital to getting your property found and obtaining a good price.  One big reason why commissions have remained steady at 2.5 - 3.0% is because of the brokerage firms.  Most associate brokers have to pay a cut of their commission to their firm who charges a minimum commission to the associate broker.  Thus the associate broker must also charge a minimum to the client.  It's a racket if you ask me.

With the proliferation of the real estate web sites and the massive growth of real estate feeds, you would be a fool to pay any agent a percentage commission.  I recommend finding somebody with a flat fee service and buy yourself a nice refrigerator.
  • October 21 2013
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The rates are negotiable.  The agent should always take into account how much you need to Net when discussing commissions.  
  • October 18 2013
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Profile picture for Dunes ..
According to the Dept. of Justice on their Anti-Trust Site
"Over the past decade the average commission rate has remained relatively steady between 5.0 and 5.5 percent."
Competition and Real Estate

You do have options and if you check out the link above they will be explained (Flat Fee/Fee for Service..Rebates...Full Service)
Lot of info..give it a look if you're interested in getting a general idea of possible options

  • October 18 2013
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Profile picture for user6219448
Why is 6% so customary for so long? Agents do far less work now with the Internet and computers. Why hasn't the rate gone down?
  • October 18 2013
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It is negotiated between the parties at hand. 
  • May 22 2013
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Profile picture for David Widlund
Mr Hakimi, That's spam and violates Zillow's Good Neighbor policy. This is a place to come for answers to real estate questions, not for free advertising.
  • May 11 2013
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Profile picture for davidhawke
Commissions are negotiable, and some agents are more competitive than others.   I personally offer a full service, discounted listing service.   You can see from my reviews that I am well rated, and my clients love my service.  

You can feel free to call me, and I will save you money!

David Hakimi
Broker's Guild Classic Ltd.
[deleted by Zillow moderator. Please see our Good Neighbor Policy for posting guidelines]
  • May 11 2013
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Everything is negotiable.

What does it say about the value the agent puts on themselves? Does it demonstrate how strong their negotiation skills are if they can't defend their own value?

I like to share with sellers the various levels of commission and the pro's and con's of each - and allow them to choose when they well informed.
  • May 10 2013
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Profile picture for David Widlund
Seems like the number I've seen repeatedly on settlement statements is 5.8% split between buyer's and seller's agents. Many times, the seller's agent will reduce their commission on the sell side if there is a good chance that the seller will use them to purchase a new home after the sale. But the buyer's agent receive's a full commission.
  • May 09 2013
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We are not permitted to discuss commisisons openly.  It will vary from Broker and also depending on what level of service you require.  Cheapest isn't always the best - would you want to go the the cheapest doctor, or the cheapest attorney.  I would rather focus on who will get the job done for you - a hard working Realtor is worth every cent. 
  • May 09 2013
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It really depends, most common is a 6% commission rate, 3% to the listing brokerage and 3% to the selling broker. There rates can be negotiated, but even then, if a commission is going to be lowered you generally will want to offer the selling broker 3% to attract more buyers.
  • May 09 2013
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