Zillow Advice: Selling Process - Do listing commissions decrease as the selling prices increase? http://www.zillow.com/advice-thread/Do-listing-commissions-decrease-as-the-selling-prices-increase/519467/ Zillow Advice | Zillow Real Estate gjstcruz,The answer is yes, ... http://www.zillow.com/advice-thread/Do-listing-commissions-decrease-as-the-selling-prices-increase/519467/ gjstcruz,<br/>The answer is yes, the brokerage generally earns the same commission for selling either property. &nbsp;It is one of the irrational components of the Real Estate pricing structure.&nbsp;<br/><br/>The majority of your answers here will be: "commissions are negotiable". This is completely accurate and I will echo that statement to free myself of liability, yet that statement avoids the conversation you are really getting at in your question. Commissions are negotiable, but in a quick review of available listings in your area, there is no indication that commissions are correlated to the selling price of the home (south of 2MM anyway). &nbsp;Commission rates, or at least those offered to buyers agents, seem to be in the 2.5%-3% range, regardless of the selling price.<br/><br/>The truth is, the Real Estate commission model is irrational for this reason and a few more. &nbsp;The model does not serve the customer efficiently. Whoever figures out a better way to do it will be a very rich person.&nbsp; Tue, 19 Nov 2013 20:05:00 GMT http://www.zillow.com/advice-thread/Do-listing-commissions-decrease-as-the-selling-prices-increase/519467/ 2013-11-19T20:05:00Z With commercial properties, ... http://www.zillow.com/advice-thread/Do-listing-commissions-decrease-as-the-selling-prices-increase/519467/ With commercial properties, the commission rate stays basically the same.<br/><br/>Walking away goes both ways. Wed, 20 Nov 2013 16:38:00 GMT http://www.zillow.com/advice-thread/Do-listing-commissions-decrease-as-the-selling-prices-increase/519467/ 2013-11-20T16:38:00Z @gjstcruzThe house is a legal ... http://www.zillow.com/advice-thread/Do-listing-commissions-decrease-as-the-selling-prices-increase/519467/ <em><strong>@gjstcruz<br/>The house is a legal three family in North Bergen, NJ.</strong></em><br/><br/>We are not talking single family home.&nbsp; <strong>We are talking about a multi unit which may be an investment property.&nbsp;</strong> In many brokerages that is considered a commercial property.<br/><br/>When you interview agents be sure you are talking to the right agent.&nbsp; You need someone experienced with multi units both owner occupied and investment.&nbsp; Not every agent is experienced dealing with this type of property.<br/><br/>As others have said commissions are negotiable.&nbsp; When you are dealing with 3 housing units, coordinating showings, advertising to multiple audiences, running ROI numbers etc. agents may not be too keen on making concessions. Wed, 20 Nov 2013 15:13:00 GMT http://www.zillow.com/advice-thread/Do-listing-commissions-decrease-as-the-selling-prices-increase/519467/ 2013-11-20T15:13:00Z "Commissions, for the most ... http://www.zillow.com/advice-thread/Do-listing-commissions-decrease-as-the-selling-prices-increase/519467/ <strong><em>"Commissions, for the most part, ARE NOT negotiable, no matter how we try to appease the FTC."<br/></em></strong><br/>Actually, I have found commissions are negotiable on listing agreements.<br/><br/>#1 - Know what services/circumstances you are negotiating for. It doesn't necessarily work if you just roll in and ask for X%, but if you ask for X% under specific circumstances, it does work.<br/><br/>#2 - Know that "walking away" is part of the negotiation. Just because Realtor 'A' will not discuss the commission structure, doesn't mean that your negotiation is done. Wed, 20 Nov 2013 05:37:00 GMT http://www.zillow.com/advice-thread/Do-listing-commissions-decrease-as-the-selling-prices-increase/519467/ 2013-11-20T05:37:00Z There is an "industry standard," ... http://www.zillow.com/advice-thread/Do-listing-commissions-decrease-as-the-selling-prices-increase/519467/ There is an "industry standard," at least in local markets.&nbsp;<br/><br/>Regardless of the rationality, brokers generally charge on a commission basis, not on a time &amp; materials basis.&nbsp;<br/><br/>Commissions, for the most part, ARE NOT negotiable, no matter how we try to appease the FTC. The VARY, from brokerage to brokerage and even agent to agent, but that's not the same thing. Competition just means that there are options for the consumer, not that every provider has to bend on their pricing.<br/><br/>There are flat-fee and discount brokers out there, and if the price of the services is paramount to you, then I suggest you shop brokers who already offer flat-fees or discounts. &nbsp;Why bother with brokers who want to charge more than you want to pay? Isn't that like going to a restaurant and saying that you only want to pay $4 for the $7 entree? Who does that? You go where the entree is $4!<br/><br/>All the best, Wed, 20 Nov 2013 05:21:00 GMT http://www.zillow.com/advice-thread/Do-listing-commissions-decrease-as-the-selling-prices-increase/519467/ 2013-11-20T05:21:00Z There is no industry standard-interview ... http://www.zillow.com/advice-thread/Do-listing-commissions-decrease-as-the-selling-prices-increase/519467/ There is no industry standard-interview agents, ask to see their work on sold properties on their listings and ask a lot of questions about their marketing plan! Wed, 20 Nov 2013 02:22:00 GMT http://www.zillow.com/advice-thread/Do-listing-commissions-decrease-as-the-selling-prices-increase/519467/ 2013-11-20T02:22:00Z Great question, and there ... http://www.zillow.com/advice-thread/Do-listing-commissions-decrease-as-the-selling-prices-increase/519467/ Great question, and there is no industry standard. Real estate brokerage commissions are something that cannot be set. Each real estate broker may have some policies regarding what a minimum commission they may list a home at, but I am sure they do not set maximums. My recommendation is for you to find a handful of Zillow Premier agents in your area and interview them all so you can see what they have to offer. I think you will find the process to be interesting with a variety of options for you. Just make sure the real estate agents aren't all from the same office. Tue, 19 Nov 2013 22:42:00 GMT http://www.zillow.com/advice-thread/Do-listing-commissions-decrease-as-the-selling-prices-increase/519467/ 2013-11-19T22:42:00Z Thanks for the prompt postings. ... http://www.zillow.com/advice-thread/Do-listing-commissions-decrease-as-the-selling-prices-increase/519467/ Thanks for the prompt postings. It does seem irrational that as the price of the property increases the percentage should stay constant. A 100% difference in the gross commission (i.e., between the sale of a property for $250K vs. $500K) is patently significant. It can't be twice as much work and I doubt the agent is twice as good. The more I learn the more nominal "negotiable" appears to be. <br/>I've just begun research as executor of my father's will. The house is a legal three family in North Bergen, NJ. I live out of state, and plan to interview at least three agents but would like to walk in with some knowledge. That's why I'm here. I appreciate the help. Tue, 19 Nov 2013 21:49:00 GMT http://www.zillow.com/advice-thread/Do-listing-commissions-decrease-as-the-selling-prices-increase/519467/ 2013-11-19T21:49:00Z In my area the percentage ... http://www.zillow.com/advice-thread/Do-listing-commissions-decrease-as-the-selling-prices-increase/519467/ In my area the percentage is always negotiable but normally 5 apples.&nbsp;<br/>&nbsp;What is interesting is that houses that are priced lower usually have a higher percentage and&nbsp;properties in the millions have a lower percentage. Question is which one is&nbsp;more difficult to sell thus taking more effort and time from the agent?&nbsp;&nbsp;&nbsp; <br/>&nbsp;In my homeland of Ireland 1% is the standard. Tue, 19 Nov 2013 18:52:00 GMT http://www.zillow.com/advice-thread/Do-listing-commissions-decrease-as-the-selling-prices-increase/519467/ 2013-11-19T18:52:00Z I my area, The Broker sets ... http://www.zillow.com/advice-thread/Do-listing-commissions-decrease-as-the-selling-prices-increase/519467/ I my area, The Broker sets the commission rate. It is typically 6% of the selling price. I can be negotiated. You need to interview a few Realtor to see what the going rate is for your market.The real question that most home owners who are selling their home is " what do I get when all said and done?"&nbsp; Tue, 19 Nov 2013 18:26:00 GMT http://www.zillow.com/advice-thread/Do-listing-commissions-decrease-as-the-selling-prices-increase/519467/ 2013-11-19T18:26:00Z