Obviously, listing commissions can vary wildly, from 6% down to the companies who offer to list for a flat fee. Using a discounted listing agent isn't necessarily a bad thing, but you should be extremely wary of using any discounted lister who offers the "buyer's agents" a flat fee, rather than a percentage. There are a few companies in Denver pushing this listing model now.
To unwary sellers, it sounds like a fantastic deal. What seller wouldn't want to pay a flat $3000 fee, as opposed to a full 2.8%? The problem is... offering buyers agents a $3000 flat commission to bring their buyers to see your home, isn't very appealing when they could show their clients almost any other home out there and make 2.8%. As a result, the majority of buyer's agent will avoid showing your listing. Many will simply tell their clients that the house is already under contract, or that it has issues, etc, to avoid showing it. As a result, homes listed with a flat fee co-op offered... end up sitting on the market much, much longer. The sellers also typically end up having to take several major price reductions, before they can get the home sold.
So, bottom line... the flat fee listing commission often ends up costing the sellers money when its all said and done, because the home's price ends up being dropped so much to get it sold.
If you're going to use a discounted listing agent, find one who only discounts their side of the commission, and offers a competitive co-op to the agent bringing the buyer. That way, you don't make your home "one to avoid" in the eyes of all the buyer's agents out there.
Depends on whether you're the buyer or the seller. I tell buyers to plan on 1.5% minimum. With the new option of choice regarding who pays for title insurance, numbers on both sides can now vary since title insurance is a major percentage of these costs excluding Realtor fees.
Go to http://www.realeasynumbers.com. It's a great free program that calculates closing costs for any situation, for both buyers and sellers, in different states.
Cherry Creek Properties