Home Buying in 07716>Question Details

Keb747, Home Buyer in Atlantic Highlands, NJ

Please explain realtor fees-I plan to sell and buy still in Monmouth county. I understand that I can negotiate.

Asked by Keb747, Atlantic Highlands, NJ Thu May 30, 2013

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Actually, Marc, it is totally correct - both ways. The buyer also pays for the seller's transfer taxes and pays off their mortgage, but we don't approach the matter as if the buyer can negotiate a savings on those transfer taxes or on the mortgage (except, of course, on a short sale).

Personally, I find the "sell-and-buy" client to be more pleasant, but to take up much more time and effort, than two separate transactions.
0 votes Thank Flag Link Mon Jun 10, 2013
Just to clear up a misconception. The commission is paid out of the proceeds of the sale, but the buyer most definitely pays a part of the commission. It is built into real estate prices in general. So while you don't directly pay the commission as a buyer, it's there, in your mortgage, in the price you paid for the house. The statement "the seller pays the commission" is popular, but incorrect.

Also, in the case of a sell and buy where you use the same agent for both transactions, there is usually more room for negotiation on the commission, than if you are just selling.

However, this should only be exercised if the agent is active in both markets. You do not want to save 1 or 2% on your selling commission to use a buyer's agent who is working out of his area. Why? He will not know pricing and value in the unfamiliar market. You are paying for that knowledge and expertise. So the money you save on the selling end could evaporate on the buying end if the selling agent is not familiar with the market in which you are buying.
0 votes Thank Flag Link Mon Jun 10, 2013
All real estate fees are negotiable. When you are selling a home you have to pay a realtor fee that is significant enough for the listing agent to market your home and the buyers agent to be compensated fairly. As a buyer you don't pay any fee, it is paid by the other seller. The best way to decide who you should work with and what they have to offer in terms of services and fees is to interview a few realtors before making a decision.
0 votes Thank Flag Link Mon Jun 10, 2013
Hi there..

All explanations below are excellent..The only one thing I would like to add is that for most people their home ownership is the largest asset they have and the agent you select should treat it as such....Hiring an agent who will treat you with the respect you deserve and explaining the commission they will ultimately charge for services rendered is extremely important........There is not set commission across the board, however there is a small range among agents.....As said before interview three before making you decision......

Best of luck, if I can be of some help, please do not hesitate to call..

Diane Van Vliet
Heritage House Sotheby's International Realty
23 West River Road
Rumson, N.J.
Cell 732 859 2376

Cell
0 votes Thank Flag Link Thu May 30, 2013
Realtor for the most part will have a fee for which they work.

In many cases this fee can be open for discussion.

When selecting a realtor, please do not list with someone who is willing to accept a bottom commission rate. Realtors do not get paid until an escrow closes. They have to work pretty hard at getting the job done. Anyone who is willing to take a cut rate commission may not be willing to work as hard as they may need to to provide you with the level of professional service you deserve.

Besides, if the realtor cannot SALE him/herself to you unless they cut their rate,how on earth can you trust them to sale your home?

Best Regards,

Kawain Payne, Realtor
0 votes Thank Flag Link Thu May 30, 2013
Yes. Realtor fees are negotiable. You pay them as a seller so when you buy, you won't.
Don't just focus on the commission an agent charges you, compare it with what that agent is doing for you vs other agents and what they are charging
Web Reference: http://www.dianeglander.com
0 votes Thank Flag Link Thu May 30, 2013
Fees can span a very wide range. That doesn't mean that an individual agent working for a specific broker has great latitude in price. Let me compare to the purchase of a new automobile. New cars can range from 15K - 75K and even more. The car that has a sticker for 75K may negotiate some, but even their lowest price point may be much higher than elsewhere.

I don't always agree that "you get what you pay for" in real estate. I've seen plenty of transactions where the seller was paying a fee on the higher end of the scale and not getting very much service.

I will agree that if you choose a broker that offers a lot of flexibility in pricing, you might find that the lowest fees also come with some limitations. Those limitations may or may not be acceptable to you.

As a boutique brokerage who is not bound to corporate rigidity, we do offer several plans. When we charge a full service fee, we deliver full service. We are not an "entry only" shop, so we don't have any offerings for super low prices where we simply put a seller in MLS and walk away. All of our packages provide hands on negotiating and representation, but we do have some options to bring the price down for sellers.

I do believe it is worthwhile to meet with a few different agents from different brokerages. It is very difficult for an agent to tell you a fee over the phone, however, they may be able to quote you a range that they work within. Identify a few agents to meet with in person. It may be helpful to learn the price range they work within via phone, but the exact rate an agent quotes may not be able to be determined until they meet you and see the property.

On the extreme low cost range are brokers who are place a seller's property in MLS and direct all showing inquiries directly to the seller. (While our company has a very wide range in pricing, we do not offer that service.) This entry only (meaning enter it in MLS) service may or may not be acceptable to you. It does come with limitations and works for some sellers, although it has not yet gained wide acceptance from sellers. You must be prepared to do much yourself in order to travel this route. It is the right choice for a few select sellers.

Some agents have minimal ranges in pricing because they work for brokers who determine the pricing structure. Most fee ranges, or sometimes even an exact fee is determined by the broker.

You might hear "real estate fees are negotiable" and that refers to the industry. The industry cannot predetermine a set fee and determine that anyone who wants to sell a property pays that preset or standard fee. Any individual business in real estate may determine their pricing policy. So, a specific office may charge "X-Y" - another may charge "exactly and only X" and another may charge "A-B".

When you meet with agents, gain a thorough understanding of exactly what services you should expect and be specific when discussing updates, communications, and progress reviews.

I hope this info is helpful to your search. The final price you pay will depend upon your choice of services, agent, and broker chosen.

Deborah Madey - Broker
Peninsula Realty Group
0 votes Thank Flag Link Thu May 30, 2013
Deborah Madey, Real Estate Pro in Red Bank, NJ
MVP'08
Contact
Hello! Basically, all real estate commissions are negotiable, by law. An above average commission is 6%. This is typically split with the selling & buyer's agent.

As a seller, you should think of your commission as a marketing tool. All buyer's agents can see what you, the seller are offering as far as commission percentage. If a similar house is offering 3% and your listing is offering less, the agent will lean toward showing the higher percentage.

As a buyer, real estate commissions are not your responsibility and are wrapped up in the price.

Should you need further advice,marketing options or updates on the neighborhoods you are interested in buying in, feel free to contact me at MicheleI@BetterHomesUS.com.
0 votes Thank Flag Link Thu May 30, 2013
Atlantic Highlands Seller/Buyer, Kevin Hawkins gave you an excellent overview. The take-home message: the SELLER pays the commissions.

When you choose a REALTOR®, there are many factors you should consider:

Is he/she familiar with the LOCAL area?
Is he/she willing to take the time to really get to know you, answer all of your questions, and give you all the information you need to know when selling or buying a home in New Jersey?
Who will do the very best job to market your home when you sell it?
Who knows most about the latest marketing technology, including SMS text messages, QR codes, and internet presence?
Who will maximize the number and quality of the photos of the home you're selling, and also include a video or virtual tour?

Interview 2 or 3 different REALTORS® and see who you're most comfortable with. Better yet, pre-screen who you interview by looking at each person's web site/blog to get an idea of how they think and what they value. My website is: http://www.rumsonfairhavenhome.com and I also post real estate stories on the Rumson-Fair Haven Patch http://rumson.patch.com/.

P.S.: Ask the REALTORS® about the initials after their names. The "GRI" is the most prestigious and difficult to obtain, and if they don't have it, ask them why not (and see if you agree with their answers).

Leonard “Len” Dunikoski, GRI
REALTOR® Associate
Diane Turton Realtors – Rumson Office
8 West River Road
Rumson, NJ 07760
(732) 239-0739 (cell) (732) 530-6686 (office)
ldunikoski@dianeturton.com
http://www.rumsonfairhavenhome.com
0 votes Thank Flag Link Thu May 30, 2013
Lots of agents have the GRI. If you want to talk about prestigious, CIPS and CCIM are the most difficult and prestigious there are. Business experience is far more important than any letters someone might have after there name. Because someone took classes for a week or so certainly doesn't make them more qualified. Most of the designations don't mean much other than a way for NAR to get more money from the people they are supposed to represent.
Flag Mon Jun 10, 2013
Realtor Fees are the cost that the seller incurs when employing a Listing Agent after the home sells. Generally speaking the commission for most agents is around 6% of the purchase price. This percentage could be quite different depending on where you live and what is customary in your area. This percentage is paid by the seller, and it pays commission to listing agent, and the selling agent (which is the agent with the buyer). This is one of the big costs of selling a home with a real estate professional, but it is well worth it.
The good thing about buying homes is you get the services of a real estate professional for free!! the seller pays for your agent:)
Negotiating the commission is always possible, but some realtors will not budge on the percentage that they charge. Sometimes they just dont want to reduce there cost, and sometimes they are not permitted to by their broker.
These days there are a lot of "discount brokers" out there, and they do seem much more attractive then the pricey competitors. BUT YOU REALLY TO GET WHAT YOU PAY FOR IN THIS BUSINESS!! So just be careful:)
I hope this helped:)
0 votes Thank Flag Link Thu May 30, 2013
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