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Virginia, Other/Just Looking in Wilton, CT

What is the typical real estate commission in Sarasota?

Asked by Virginia, Wilton, CT Wed Jul 14, 2010

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Steve (888) 662-4404’s answer
Virginia,

If a realtor knew of a lender offering a No Money Down loan at a 2.375% fixed rate with no pmi, do you think they would tell buyers about it? In a heartbeat!

As a Florida Mortgage Broker, I'm simply helping buyers save money too!

If truthful, everyone in the Mortgage and real estate industry will admit that real estate commission is in fact, the Buyer's FORFEITED Equity.

Ask anyone who says different this question:

If a buyer negotiated their lowest price on a listed property, and then if the seller didn't have to pay the 6% real estate commission, and could lower the sales price another 6%, who is really paying the real estate commission?

Example: 300,000 sales price x 6% realtor points = $18,000 of Forfeited Home Equity given to the buyer’s agent and listing agent

A buyer really can't do much about the 3%= $9,000 that the listing takes, but the Buyer’s Agent 3% is up for grabs in the form of Buyer’s Agent Rebate to Buyer.

There are buyer’s agent who are more experienced than most, willing to work harder, negotiate better AND offer to split the realtor equity points with the buyer keeping a very fair amount of $4000.00 and giving the buyer a $5,000.00 credit to pay closing costs.

Why would they do this? If they keep $4,000, that is the same as they would make selling a $133,000 property and if they did this 3 times per month, that makes them $144,000 per year!

Are realtors allowed to do this?

US Dept. of Justice Consumer Alert: Consumers Can Save Thousands of Dollars in Commissions
http://www.justice.gov/atr/public/real_estate/commission-tab…


The Florida Real Estate Commission (FREC) Rule 61J2-10.028 (2) provides that a licensee may share brokerage compensation with a party to a transaction as long as full disclosure is given to all interested parties.


If you’re going to hand any one of thousands of realtors such a large amount of Equity on a purchase, at least work with one who, in addition to helping you locate and negotiate your best deal, is willing to offer you a Buyer's Agent Credit of your home equity. Basically sharing YOUR Equity with you!


200k sales price = $3,000 Buyer's Agent Credit to buyer

300k = $5,000

400k = $8,000

500k = $10,000

1m = $20,000


HERE’S AN EXAMPLE REALTOR GFB
http://www.trulia.com/blog/steve_31/2012/07/my_realtor_bough…


HERE ARE WAYS IT CAN BE USED
http://www.trulia.com/blog/steve_31/2012/06/my_buyer_agent_p…


HERE’S HOW IT WORKS:
http://www.trulia.com/blog/steve_31/2012/05/realtor_bid_prog…


HERE’S WHY IT’S OFFERED:
http://www.trulia.com/blog/steve_31/2012/05/why_why_would_a_…


HERE’S WHO SAYS YOU SHOULD GET IT:
http://www.justice.gov/atr/public/real_estate/commission-tab…


Contact me and I’ll introduce you to a realtor(s) who offer Buyer’s Agent Credit savings to help my buyer referrals anywhere in FL.


Steve McRory

Pro Option Mortgage

http://www.pro-option.com

steve@pro-option.com

Ph: 888 662 4404

Prior Service U.S. Marine Corps
0 votes Thank Flag Link Sat Aug 11, 2012
BEST ANSWER
Hello Virginia,
After reading the previous answers to your questions I can see why there could have been some confusion. I believe in keeping it simple. The answer to your question is: In most national real estate brokerages the most common and usual commission is 6% to be equally shared by both the listing angent and the buyer's agent. Some brokerages set a, usually firm commission of 7% and feel they are worth it. Whether their reasoning is valid is up to the seller. I charge 6% commission with 3% 0f that amount going to the buyer's agent. I do not know of ANYONE who works harder or smarter than I do, or who spends more on advertising and promotion of my listings or holds more open houses or communicates more with their clients than I do. I have recently heard of some internet providers who get your listing on the MLS for a set fee but do nothing to actually SELL your home. Sellers should interview, assess and select their representation wisely.

Faye Doyle, LLC
RE/MAX Alliance Group
2000 Webber Street
Sarasota, FL 34239
Cell: 941-504-7496
Fax: 941-954-5455
Email: fayedoylellc@gmail.com
Website: FayeDoyle.com
0 votes Thank Flag Link Wed Jul 14, 2010
David - I have given up trying to inform others that as agents we are NOT supposed to state what a "customary" or "typical" commission is....as all commissions are negotiable!

I am glad that at least you "get it". Thumbs up to you for that!

The Sherman anti-trust laws forbid agents from discussing this among themselves - and especially here in a public forum.
By stating what you think is standard or expected, you may be swaying what anorther agent will charge, or misleading a consumer into thinking they HAVE to pay that amount.

Virginia - speak to a few local agents and ask what they charge.Ask for a written marketig plan to see what you should expect. Commissions ARE negotiable. You have many options. There are also flat fee offices that will charge you a fee to ist your home....and full service offices that offer an array of services. Real estate these days is not one size fits all.
Sit and discuss this face to face with a few local agents.

Best wishes...........

PS
For anyone who doesn't understand the concept of the anti trust laws, , I suggest you take this up with your Broker......or better yet, give your state Real Estate Commision a call. You can even google "Dept. of Justice real estate anti trust laws" for a crash course in what you should and shouldn't say!
2 votes Thank Flag Link Wed Jul 14, 2010
Dan - you have nothing to lose - you're not Realtor..............you may say or state whatever you want tol

When you become Realtor, perhaps you will think twice before sharing your thoughts, and realize that whether we agree or not, we have rules and regulations we must follow - or suffer potential consequences.

. As far as offering a wide ranging average - what point does that serve? That's not generally what a consumer is asking for.

As is recommended, especially in this day and age of multiple options, not just percentages, but flat fee options, too - a consumer is best served by speaking directly with several agents. No need for several "perhaps" scenarios...........just stick to the laws.


Terri - bravo and thumbs up ! (you, too Dunes)
1 vote Thank Flag Link Thu Jul 15, 2010
Dan

It's a little more important for members of the RE Industry to pay attention to the Opinion and interpretation the Dept. of Justice Enforces with large Fines, loss of License and Jail time..

I can understand your disagreeing with this or any other issue like Fair Housing Laws but on these issues your beef/disagreement/opinion should be with the Dept. of Justice, the Supreme Court ....Agents are only Complying not making these Laws/Guidelines or Rules..They do so because to do otherwise could literally destroy their career/Future.

And these Rules/Laws were not made arbitrarily but for very good and legitimate reasons and as the result of many Lawsuits and Abuses...They are made to PROTECT and IMHO are GOOD LAWS
1 vote Thank Flag Link Thu Jul 15, 2010
Hi Virginia,

Unfortunately, it is illegal for an agent to discuss real estate commissions between ourselves or openly here in print form. Some agents here just don't get that and risk the loss of their license in doing so. There is no set commission and everything is negotiable. Some may charge less for less services and some may charge more. I, like some of my other colleagues on this site suggest you contact some agents and interview them. Find out what services they provide for the amount of the commission they charge.

It's the only way to do it.

My best,
Terri

Teresa M. Fellows
Waterside Realty LLC
941-350-4297
tmf4257@mac.com
http://www.floridawestproperties.com
1 vote Thank Flag Link Thu Jul 15, 2010
Debbie, Debbie, Debbie

That wall you keep beating your head against must have alot of dents in it by now. LOL Some people get it, but just don't care about discussing commissions in an open forum. They would rather try and get the business. It used to be against Trulia rules to discuss commission here, but apparantly they too have given up since it is not in their guildlines anymore.
1 vote Thank Flag Link Thu Jul 15, 2010
Virginia:

John Peirano 941-232-9081

Based on the Answers of Debbie and David below I feel their excepts need repeating...the bottom line is that ALL AGENTS are unique in the SERVICE they bring to the table and the marketing plan offered in helping obtain the most money to you as a seller.

In today's marketplace Sellers need to to really focus on the importance of PROFESSIONAL PHOTOGRAPHY and PROFESSIONAL AD COPY. You never get another chance to make a first impression and with the internet and MLS - AGENTS producing nearly 3 out of 4 sales, the BEST PERCEIVED HOMES based on PERCEIVED VALUE are the ones that get shown and SELL. Remember you are in competition - what your agent does to make your property as attractive as possible matters.

After Photography and AD COPY, real estate SIGNAGE is very important in that having a sign that contacts the AGENT directly is much better than having a sign that has a contact point of a receptionist or agent on floor saying to the customer "HOLD on while I look up the information on that Property for you". In 2009 based on the National Association of Realtors statistics for "Where Buyers Come From" - 36% of buyer sales come from or initiate from being found on the INTERNET, 36% come from AGENTS - thus the multiple listing service that feeds other internet sites, and 12% come from SIGNAGE...therefore make sure any agent you are considering hiring UNDERSTANDS where on the INTERNET the buyers are shopping and how to reach those buyers.

If you would like to set up a confdential interview to REVIEW how Signature Sothebys International and my team differentiate your home from the competition please call us for a 30 minute appointment to review our action plan.
941-232-9081

Again Worth Repeating:

FROM DEBBIE ROSE :
" The Sherman anti-trust laws forbid agents from discussing this among themselves - and especially here in a public forum.
By stating what you think is standard or expected, you may be swaying what anorther agent will charge, or misleading a consumer into thinking they HAVE to pay that amount.

Virginia - speak to a few local agents and ask what they charge.Ask for a written marketig plan to see what you should expect. Commissions ARE negotiable. You have many options. There are also flat fee offices that will charge you a fee to ist your home....and full service offices that offer an array of services. Real estate these days is not one size fits all.
Sit and discuss this face to face with a few local agents."

FROM DAVID BARR
"If you are selling a home, you should interview Realtors to see their marketing plan to sell your property, and evaluate if the commission they charge is commensurate with the services they are offering. "
1 vote Thank Flag Link Thu Jul 15, 2010
Debbie, you covered it all!

Best answer award...
1 vote Thank Flag Link Thu Jul 15, 2010
If you are looking to purchase a condo or house in Sarasota the seller pays the commission. ( You are paying it in the price of the home). If you go directly to the listing agent they will be paid the total amount of commission that they have contracted with the seller. You will not have a agent working for you to negotiate the best price terms and conditions.
If you work with a buyers agent to find the property then the buyers agent will be paid by the agent hired by the seller and usually it is about half of the commission that the seller has agreed to pay in real estate commission. Most transactions have both a listing agent and a selling agent. We work together, share the commission and it creates an Arms length transaction where we try not to get emotions involved since it is our business.
The commission that the seller pays varies in this area. There are flat fee listings where the seller does much of the work themselves to full service where the broker handles the entire marketing and transaction.
If you are buying I suggest you find a Realtor who is experienced in this market able to navigate through the short sales and bank owned foreclosures since they are prevalent in the Sarasota area.
Feel free to visit our site where we feature local foreclosure listings.
We specialize in assisting buyers and negotiating the best price terms and conditions.
If your selling a home in the area, the commission is negotiable, interview several brokers. Typically you get what you pay for and in a market where foreclosures are setting the pricing of the market, and there is a large inventory of homes for sale marketing is very important. If you would like to discuss CLUB REALTY' s marketing plan we would be glad to discuss your options.
Hope this helps,
Brooke O'Malley
CLUB REALTY http://www.MyClubRealty.com
941-726-2677
PS.
Regarding short sales the lender accepts the short payoff of the loan and this includes a commission being paid to the Realtors involved. The seller who is losing the property usually has no money, which means that the purchase price minus commissions, back taxes, and any liens equals a net that the bank receives after everything is paid to allow free and clear title to the buyer.
Web Reference: http://www.MyClubRealty.com
1 vote Thank Flag Link Wed Jul 14, 2010
Dear Virginia:

There is no typical commission. Suggesting a "typical" commission would be a violation of real estate law because of possible price fixing.

If you are buying a home, the seller pays the agent representing you in the purchase.

If you are selling a home, you should interview Realtors to see their marketing plan to sell your property, and evaluate if the commission they charge is commensurate with the services they are offering.

Best regards,
David Barr, Broker Associate
Sandals Realty
david@davidbarrhomes.com
Twitter: @sarasota_homes
1 vote Thank Flag Link Wed Jul 14, 2010
Much like attorneys there is no typical fee. I would strongly suggest that you interview a few agents, make sure they are familiar with the type of transaction you are completing and the area for the transaction, ask for their references and chose the best agent you can find. A good agent can save you thousands, if not tens of thousands. Savings and making the process easy can quickly out weigh a few dollars difference in commission very quickly.

As my father always said, "people can only charge what others think they are worth." So be careful of those who quickly offer discounts. They often do this because others won't use them without a discounted price. And as my father also used to say. "there is no such thing as a free lunch."

BRIAN A. MCGREEVY
Broker/Owner, REALTOR, MBA, GRI, ABR, SRES, RRS, AHWD
2007, 2008, 2009, 2010 & 2011 Five Star Award Winner- Best in Client Satisfaction
Sarasota Home Realty
2100 Constitution Boulevard
Sarasota, FL 34231

E-mail: SarasotaReal@gmail.com
Phone: (941) 544-6763 FAX: (941) 866-7588
0 votes Thank Flag Link Fri Aug 10, 2012
Every real estate transaction is unique and as such there is no "typical" real estate commission. It was, is, and always will be negotiable.
0 votes Thank Flag Link Thu Aug 9, 2012
Virginia, as a direct answer to your question, there is no such thing as a typical real estate commission. Different brokerages and their agents charge different amounts. You will also find that there is no typical level of service either. Different brokerages and their agents service their customers differently.

Best thing to do would be to interview a few agents from different brokerages that appear to be a fit for you. They can identify the costs (commissions and associated fees) and detail the services they provide in return.

You will usually find that most real estate commissions are paid by the sellers. At times there are fees that are also paid by the buyer, but again, that depends on the brokerage and their agents.

BRIAN A. MCGREEVY
Broker/Owner, REALTOR, MBA, GRI, RRS, ABR, AHWD
2007, 2008, 2009 & 2010 Best in Client Satisfaction
Five Star Award Winner
Sarasota Home Realty
2100 Constitution Boulevard
Sarasota, FL 34231
http://www.SarasotaHomeRealty.com
E-mail: SarasotaReal@gmail.com
Phone: (941) 544-6763
FAX: (941) 866-7588
0 votes Thank Flag Link Fri Oct 8, 2010
Debbie, I get the sherman antitrust reasons to say nothing. However, when someone asks what the average is I do not see that as being an issue personally.

Could it be as simple as saying I have seen anywhere from 3.5% to 8.2% listed on the MLS with 6% being the most common?

Perhaps the questions should ask what the mean rate is instead of the average?
Perhaps the reply should cover the range alone and not show the most common rate?
0 votes Thank Flag Link Thu Jul 15, 2010
Ohhhhhh Patrick - so that's why I have this constant headache!!
That darn wall!

:)

I really think many agents are just ignorant on the topic - maybe not, maybe they don't care, and you are correct.
Who knows..........
When I first came to trulia, I wasn't aware that it was illegal to state specific commissions, or have an open discussion about them - then I educated myself, with trulia's help and that of other knowledgeable agents - maybe others will figure it out in time, too.

Parodn me while I go and paint the wall - those dents aren't very attractive!
Have a happy day!
0 votes Thank Flag Link Thu Jul 15, 2010
OK - so based on David Leventhal's answer below, and the "Best Answer" awardee's response, - I will just wave my white flag and surrender! :)

So many agents just don't know or understand that what was just said below is illegal!
The consumer isn't supposed to understand the law - but Realtors should!

I give up............David White, JohnPeirano - thanks for the back up support - maybe one day all agents will be educated in regard to this often-brought-up, but touchy subject.

All commissions are negotiable.............period. That's the only proper repsonse to this question.

And on that note - have a great day everyone
0 votes Thank Flag Link Thu Jul 15, 2010
6-7% depending on property and marketing and all
Let me know if my team can help
David Leventhal
The Leventhal Team
0 votes Thank Flag Link Thu Jul 15, 2010
Sorry I know the buyer doesn't pay the commission. Typically in CT the rate is 5%. Is it more or less in FL. Please don't give me a bunch of baloney. I just want to know what is the standard practice. Thanks.
0 votes Thank Flag Link Wed Jul 14, 2010
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