Home Buying in Eden Prairie>Question Details

Carl, Both Buyer and Seller in Eden Prairie, MN

current percentage received by listing agent/company

Asked by Carl, Eden Prairie, MN Tue Jul 12, 2011

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Commissions are negotiable and all agents/brokers have their own determinations for negotiating them with clients. I would suggest interviewing experienced agents and discussing commission structures with them at that time, as well as their marketing strategies, experience, negotiation skills and market conditions. I would look at more than commission structure when hiring a professional as all will affect the outcome of your bottom line.
Web Reference: http://www.JoeAndCindy.com
0 votes Thank Flag Link Tue Aug 30, 2011
All commissions are negotiable and it is actually illegal (it is called price fixing) for any licensed real estate agent or broker to answer your question in this type of forum.

Interview several agents, ask lots of questions, find out what they will do for their commission (see if they will actually give you a list of items and services that they will provide), and then negotiate with the agent of your choice.

Also keep in mind that not all agents are full service agents. Even if they say they are "full service" what does that actually mean? There is no standard definition. So that is why it is important to ask what you will be getting for your money.

For example, I give my potential clients with several choices, each with their own list of services and products that I will provide.

Another factor to consider is how much do you want to provide for an agent who brings a buyer. Generally, the more you offer the Buyer's Broker, the more showings you will get. This can be a big selling point and it might even get you a higher offer price for your home.

So while it sounds like you will be saving money by keeping the commission low, that is not always the case.
0 votes Thank Flag Link Mon Jul 18, 2011
Dear Carl,

That depends upon the brokerage and the agent. All commissions are negotiable between the seller and the brokerage. It does take time, expertise and money to properly market a home for sale, somthing to keep in mind when selling.
0 votes Thank Flag Link Sun Jul 17, 2011
Hi Carl,
This is a question we are asked every week. Every seller wants to save money. And the good agents want you to receive as much as possible in your sale. A good listing agent will help you prepare your home for sale, will do Comparative Market Analyses on an ongoing basis for you so you understand the market at all times. They will also do a Price Trend Analysis for your home to indicate market trend. A good Realtor will help you list your home at the right price and the right terms so that it will sell in the shortest time without additional markdowns. Don't be confused by agents who will try to "buy" your listing by promising a over market sell price. What they promise is not real.

As a lister I typically spend $600 - $1000 on printed material for each listing. I spend a couple hundred on mailers to your area. I spend $500 to $1000 for food and beverage at Broker's Opens and Public Opens. Then there are signs, balloons, give-away gas cards, etc.

You need a positive result whether buying or selling. Find an outstanding Realtor you like to work with. Their net result will save you more than a few hundred dollars in fees.
0 votes Thank Flag Link Wed Jul 13, 2011
55 percent to the listing broker (who then shares it with the agent depending on their split arrangement).

45 percent to the selling broker (who then shares it with the agent depending on their split arrangement).

This is a typical arrangement between brokers. But there is nothing to prevent an agent/broker from charging a higher commission to the seller and keeping a larger percentage (giving a smaller percentage to the sellers agent/ broker)
0 votes Thank Flag Link Wed Jul 13, 2011
Carl,

Let me answer your question another way. The payout to the broker and agent that bring a buyer is typically 2.7% to 3.15%. The remaining percentage goes to the broker and agent that list your house. 5% to 7% is the typical overall percentage a seller pays depending on what level of services you receive.

As others have stated, there is no set rate and everything can be negotiated.
0 votes Thank Flag Link Wed Jul 13, 2011
Why is everyone so interested in what we earn?
You have so many priorities to consider,

and everyone asks about the $$ but no one is asking what we do for that commission!

Is this another case where you will take the LOWEST BID?
0 votes Thank Flag Link Wed Jul 13, 2011
Carl,

Don't take your eye off the ball. You need to look at the entire package of what an agent offers and answer this question. How or with whom do I end up with the most money, least amount of hassle, in the shorest time?

Cameron Piper
Coldwell Banker Burnet
Licensed MN Broker
Web Reference: http://campiper.com
0 votes Thank Flag Link Wed Jul 13, 2011
Carl,
Both of the agent comments are accurate. If you wish to discuss this further with an Eden Prairie specialist please feel free to give me a call @ 612-616-2902.
Best,
Micah Tweten
Edina Realty
http://www.epmoves.com
Web Reference: http://epmoves.com
0 votes Thank Flag Link Wed Jul 13, 2011
As suggested agents are subject to anti-trust laws that don't allow anything that suggests a group setting of fees. Yes, there are averages and those can be quoted, usually best as a range.

Each company can tell you what they charge and how it works when splitting with another company. So if you want to know you simply have to ask. "what do you charge in this situation?" "And if splitting with another company what do you keep of the total."

The reason to ask this way is that some companies will only quote a total amount. As a client you do have a right to know how your agent is paid.

And yes, some companies will offer a discount to a seller that also buys. But that is negotiated between you and your agent. For example my company has a number of programs for saving money. It is then up to the client to choose or negotiate an agreeable fee arrangement.

Good luck.

Steele V. Propp
Home Avenue Real Estate
steelep@aol.com
0 votes Thank Flag Link Wed Jul 13, 2011
For the record - the ONLY response an agent should/can give is that all commissions are negotiable!!!.......legally, there is no "typical", "customary" or "usual" commission!

By stating what one considers to be "typical" , it can be seen as an attempt at price fixing........even if that was not the intent.
It implies that the stated number is the "going rate" and that "everyone" is charging it.
That's not what the anti- trust laws allow.

Agents who don't understand this need to look it up....or speak with their state RE Commission or Board for clarification.
0 votes Thank Flag Link Tue Jul 12, 2011
Your question is rather brief, but I will answer what I believe you are asking. I assume by your profile that you are selling a home and buying another.

The percentage fee charged is always negotiable and what is common varies from market to market. Let me regress and say that the seller pays the agents commission. So whatever percentage you negotiate as a seller, half will pay your listing agent and half will pay the agent who brings you the buyer. So, when you buy, the seller of the home you select will be paying your agents commission.

Keep in mind that these commissions aren't all ending up in your agents pocket. They most likely have a hefty split with their broker, pay local, state and national dues as well as have expenses incurred in marketing your home for sale.

The typical commision in my market in Houston, TX is about 6%. (Again, that varies from area to area as far as what is typical). If you sign an agreement using the same agent to sell your current home as you use to buy your next home (assuming you are staying in the same relative geographic area) they may agree to reduce their percentage.

Good luck in your home sale and purchase!
0 votes Thank Flag Link Tue Jul 12, 2011
Cal - truthfully, due to anti-trust laws, agents should not discuss specific commissions in a public forum.

Your best option is to call a few local agents and see what their commission structure is. Also see what it is they will do as far as marketing your home.

Today, there are a variety of business plans out there....from flat fee, a la carte plans.... to a range of commission plas in which the listing company shares a percentage of the commission with buyer agents.

Interview a few local agents.........or stop in a few agencs in your area.
Best wishes.........
0 votes Thank Flag Link Tue Jul 12, 2011
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