No agent is going to come along and discuss their "lowest fee" in an open forum. You really do need to speak one on one.
I have a feeling you misunderstood the first agent........he might have meant the total commisson you would pay him was 6%, 3% of which which would have been offered to the buyer's agent......not that the 3% would be added to the 6 for a total of 9.............I might be wrong (it happens haha) but you do need to clarify that!
If you are a for sale by owner - you don't have to pay anyone....anything..........but if you're listed, say with a flat fee broker, on the MLS, usually a commission is offered to the buyer's broker........or.........you can stick a for sale sign in your yard..........list on internet sites that will allow it..and hope a buyer's agent will have buyers who will agree to pay the agent out of their pocket.
There is NO "normal" (customary, usual or typical) commission/fee!!!!
Legally, and ethically - ALL Commissions are negotable...............end of story.
The Dept. of Justice would not take kindly to agents stating otherwise.
Suggestion - read up on the Sherman Federal Anti Trust laws.
If you would like we can discuss this in more details.
Feel free to contact me.
Did you already list your house? Because if that is true, then no Realtor should advise you because it interferes with your relationship with your agent.
If you didn't, and are just asking from a nearby property, I'd love to talk to you about why you should list with me. I'm sure I could get a home like that sold for top dollar in minimum time.
Second commissions are negotiable.
Third in a cooperative listing typically the listing broker offers 1/2 there fee to the selling broker (so in your example above I believe you may of misunderstood what the agent told you)
Fourth - there are companies out there that will for a low set amount list your home on the mls. They offer the seller limited services and typically the seller would be responsible for showing the home, negotiating the home and if there is a buyer agent involved compensating that agent.
You dont have to offer compensation on a FSBO to the cooperating broker, but lets say the market price for your home is 100000 and you only have one buyer that came to you from a buyers agent, if you dont want to pay the buyers agent and lets use your fee above 3% and want the buyer to pay then your sales price should be 97000 problem is most lenders dont take fees into the equation seperately and many buyers dont have the additional funds to pay brokerage above the purchase price and that is why it is included in the sales price or in your case 100000 as the bank will loan them against it.
Consumers can get educated to massive equity savings with a simple 3 word Google search of....
..........FLORIDA REALTOR REBATES
Its always amazing to watch certain realtors refer Loan Originator's pre approved buyers to their so called "preferred" or "in-house" lenders to save .125% in a Tax Deductible Interest Rate = a whopping $16.00 mo savings on a $200,000 loan that the borrower won't have more than 36 to 60 mo. before they refi or sell the home anyway.
But will then try to conceal and do everything they can to prevent consumers from learing about and obtaining such a massive savings that is available to them thru REALTOR REBATES!
LENDER "A" has enjoyed being able to charge a 10.00% rate and 6 Points without ever so much as even a peep from consumers for 20 yrs.
LENDER "B" comes along and offers better service, a 4.00% rate and 0 Points.
LENDER "A" won't stand for this and then says and does everything they can to discredit LENDER "B" in effort to prevent consumers from being able to obtain the savings LENDER "B" offers as LENDER "A" wants to keep the Cash Cow in place, charging consumers 10.00% and 6 Points.
In effort to educate my clients and make sure theyâ€™re completely aware of just how popular Realtor Rebates /Buyerâ€™s Agent Credit savings has become in Florida, please read the below:
FLORIDA REAL ESTATE COMMISSION Rule 61J2-10.028 (2) provides that: a licensee may share brokerage compensation with a party to a transaction (buyer or seller) as long as full disclosure is given to all interested parties.
US Dept. of Justice Consumer Alert: Consumers Can Save Thousands of Dollars in Commissions in 40 states
Contact me so I can put you in touch with a realtor who can answer your questions about how they will offer full service, from start to finish, to help you locate and close on your best deal!
Pro Option Mortgage/ Florida
Ph: 888 662 4404
Prior Service U.S. Marine Corps
Take the good advice of a Florida Mortgage Broker/ Investor, someone who not only knows better, but has NO Financial gain from the sale of your home!
Read the below and just try this for 2 or 3 months with one of my realtor partners who won't force you to agree to be tied down on a SIX MONTH (1/2 yr) listing contract.
I believe you'll be SHOCKED at how much traffic you'll see and how you will most likely sell your property faster and for TOP DOLLAR too! Plus, you won't be Tied Down to a Listing Agent for SIX MONTHS!
Educated consumers all know Realtor Commission Points are basically FOREFIETED EQUITY, no matter how you slice it or dice it! To come out and give a song and dance, telling a seller how awesome their home is to get them to sign a 6 month contract, to then enter it in the MENU called the MLS that thousands have access to and sit back and let anohter realtor sell it requires no skill!
On a $300,000 property 6 Points = $18,000 Plus "Transaction Fees" of another $1,000 for entering a property on a MENU and another for readig off a MENU called the MLS?
FSBO is a great way to sell a home if you know what you are doing as selling real estate is not rocket science!
But if a seller does not want to go FSBO, here's what smart sellers should consider doing instead:
3% Commission = $9,000 to the Listing Agent
3% Commission = $9,000 to the Buyerâ€™s /Selling Agent
NEW WAY THAT WORKS FASTER
1% Commission = $3,000 to the Listing Agent
5% commission = $15,000 to the Buyerâ€™s/ Selling Agent
FACT: The likelihood of Listing Agents selling their own listing is rare as many follow the "set it and forget it" strategy. They want to list homes and let other agents sell them.
The vast majority of homes are sold by Buyerâ€™s agents who sell other agentâ€™s listings. Therefore, offering a 5% or even 7% commission (vs. dropping the sales price which shows desperation) to any Buyerâ€™s Agent can Greatly increase traffic on your home and the chances it will sell quickly and for a higher price!
Itâ€™s only human nature if you think about it, a Buyer's Agent reading the MLS in your area for homes to show their buyers see homes paying 2%, 2.5% and 3%, but then suddenly your listing grabs their attention paying 5% = $15,000! You can bet that Realtor will make DARN sure your home will be on the list to show their buyers! And I bet there will be a lot more positive things said about your homeâ€¦ya think?
There are Realtors who will list your home for as low as 1% allowing you to offer 5% to the Buyerâ€™s Agent to sell your home quickly and if they can sell your home, then more power to them as they can get paid the whole 6% for finding a buyer!
Pro Option Mortgage/Florida
Ph: 888 662 4404
Prior Service U.S. Marine Corps
In regards to your question...
An agent may seriously say, "I'll list your home for sale FREE!!"
Would you take such an offer?
What do you suspect the outcome of such an offer to be?
Clearly, one must realize, between free and full price is where you want to be, and the closer to free you get, the less you will receive in return. This reality may not be transparent..
It is very much like that insurance company ads on TV where Lucy and Linus want insurance to cost 5 cents. The response is, "It can't be 5 cents!"... And it can't be free of course
So you want half off on that canoe you have been eyeing. The seller says SURE, which half do you want? This, whether you choose to face the facts or not, could be the choice you will be making. Mortgage brokers promoting agents who work for less than their costs won't convey the model does not service the home buyer or home seller well. Why, because you will not be able to determine which half of the canoe will float. Such INVALID choices are perplexing because, neither half will float, so choosing is an exercise of futility.
Don't get trapped into such non-sense.
Your choice MUST be based on the outcome you want, the time frame it must be delivered and the terms and conditions associated with the sale. The agent with the proper strategy will be the one that will SAVE you money and/or MAKE you money. To be misdirected to think the professional fees are relevant is to believe, as some mortgage brokers believe, your money is play money. The strategy that delivers the RESULTS you need is where your attention must be focused.
In the scenario you describe, I must believe the first is stated incorrectly. Exceptions would exist IF this is an EXCEPTIONALLY low priced home. There is much we do not know regarding your situation and/or the conditions related to the sale of your home. The other real estate professionals responding have provided exceptional guidance.
The best choice for you depends on the goals and results you want. Don't be distracted by illusions of saving that come at great cost.
By the way, my plumber lives in a nice home in Palm Harbor, Fl and has advise on how one should sell a home. He, however, sells one home every 25 years. Real Estate professionals are responsible for marketing, consulting, negotiating and overseeing the purchase and sale of dozens of home annually. That may be a great stating point in evaluating the best sources of home selling advise.
Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group, Palm Harbor, FL