Barbara, you have seen answers here that just about cover the scope of thought about this issue.
Here is just another little twist. I recently saw a listing on the MLS here that was offering a 1% commission. Sorry, I don't work for 1%! I showed the listing to the buyer and referred them back to the agency agreement they had signed. It says that my broker will accept the commission offered by the broker for the seller as long as it meets a certain minimum. The buyer is responsible to make up the difference, so in effect the commission becomes a part of the price that the buyer has to pay to purchase the home. When the buyer added the commission to the asking price of the home they decided that the home was overpriced and decided not to visit. (It is illegal for brokers to work together to SET a commission for the area, but is is NOT illegal for a Broker have a minimum commission policy for his office.)
Of course another solution would have been for the buyer to subtract the commission from the price they offered for the home.
The point is that homes on the MLS are priced with the commission included. If a home is being sold with a low commission, then it is worth less than the home next door, just as it would be worth less if it were lacking some other feature.
Yes? - Tue Sep 1 2009, 08:13