There is no "standard" commission for the industry. A company may establish standard or regular rates for their own company. That, however, has nothing to do w/ the industry. If someone tells you that "x" fee is their standard, that can be a very true statement. No agent or company has any obligation to alter their rate upon request. Any individual or company can present their rates as is, period. The individual you spoke with may or may not be willing to negotiate their fee. If the agent was attempting to represent to you that a quoted rate was standard for the industry.......no, not so. Within the industry, you will find a wide range of service and fee options.

Always gain a complete understanding of what you are getting for the fee structure presented. A higher fee does not guarantee more or better service. It's a lot more expensive to carry the administrative and marketing responsibiity for a listing than most people think. It's hard to provide full service and extensive marketing for a cut-rate fee. Promises that you will get everything from agent "y" that you would from agent "x" for 1/4 the price, is probably not so. Something has to give, otherwise the rate just can't go that low. I have seen fee structrues at the higher end of the scale for a market with minimal services delivered; and I have seen fee structures that were at the higher end of a range for a marekt with over the top, knock your socks off marketing and service. It's also possible that if someone is breaking into a new area, that they might knowingly decide to take a listing at a price which they anticipate to be a financial loss to them. Such would be rare, but not impossible.

In response to the poster who indicated they had not seen higher commission rates than you quoted, I have definitley seen double digit commissions.

What is best for your situuation, your propery, and competitive in your market is best answered by interviewing individual pros in your area.

It isn't a valid comparison to draw an analogy between puchasing a commodity and choosing a service professional. If you hire a graphic designer, ad agency, attorney, or Realtor, you are choosing based upon anticipated results, advice, skill, commitment, and knowledge.

If you hear about a full service Realtor who provided a discounted rate, it might have adjustments made accordingly. It might not....but it might. Don't assume. Ask a lot of questions and choose what is best for you.

Deborah Madey - Broker
Peninsula Realty Group - New Jersey

Ronald,

It's all very negotiable ...

Some agents will "say" 7%, I've even heard one or two mention 8% (of course they couldn't keep a straight face) ... but as a whole, they'll try to start a consumer out at 5 or 6% ..

But in todays market, you're now seeing agents range from 2 and 4% total (buyer and sellers agent) - and glad to do it ... last Thursday a friend in Florida contracted a flat fee to sell his $700,000 home for $11,000 from a "very well known" full service realtor in the area ... some good business is certainly better than no business at all ..

Just like car dealers, you need to shop around ... just because this dealer wants $32,000 for this Lexus doesn't mean the dealer down the street won't sell the same one for $30,000 ...the more you shop, the better the price.

Good luck and happy hunting.!


;^)

Commission rates are always negotiable. Some Brokers have policies that their agents can or can not negotiate. 5% has been the going rate for new construction and 6% for resale homes. But again, that is negotiable.

I base commissions on the property and the needs of the client.

First of all...there is no "standard" commission. And the highest commission I've ever seen is 6 percent, but it was only once or twice when the builders were having "fire sales" at the beginning of last year. I typically see somewhere in the 3% percent range based on the builders I've worked with here in Northern Virginia.

I suggest that you need to talk directly with the builder's sale manager (not the sales rep at the site) to see what they're offering.

What commission did you agree to pay your Buyer's Agent/Broker in the Buyer's Agency Agreement you signed (if you used one)? Anything above and beyond that may not be due your agent/broker.