Experience counts, look for an agent who has been working full time at least 5 years, more is better. Ask for documented evidence of how many transactions they closed in the past year (any less than 12 a year and you're probably wasting your time) Ask for a list of the current listings and then start doing your diligence, check Trulia, Realtor.com, Zillow etc and see how their presenting their listings. Do they use a professional photographer to shoot homes, are they appearing in a dominant position all over the web etc. Finally ask what their position is on dual agency (one agent in the middle working both sides of the transaction)
I've posted a link to a piece I wrote and posted on my blog here on Trulia that offers more advice on this subject.
I wish you the best of luck and that your home sells quickly.
Please call me anytime - 424-777-9377
Should you have any questions - please feel free to call me Toll Free: 1-855-TRUST-55 (1-855-878-7855) ext. 777.
President - RealtorÂ®
- Trust Sale Realty -
Residential & Commercial Real Estate
Toll Free: 1-855-TRUST-55
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This thinking of real estate sales as a commodity usually leads to lower net for the seller.
You see - not all agents are the same.
I recently had a conversation on the commissions, with the seller who assumed that he would "save" money by offering less in commissions. His opinion changed quickly when we went over the direct relation between Days on the Market (DOM) and sold to asking price ratios for houses with lower than standard commission percentage. The lower commissions houses were not shown as much, and their DOMs were longer and sold to asking ratios were lower as well (stale listings sell at lower prices). This is public information, by the way. We also looked at how different properties were "presented" or "not presented" in the MLS and internet - and looked at their commissions offered and their DOM, sold to asking price ratios...Those that were marketed better - sold at much higher price than those that were not - no surprise there.
There is a lot of work and investment by a realtor when selling any type of real estate - and luxury real estate especially. Agents don't get paid if they don't sell, regardless of how much time, effort, marketing dollars they pour into showcasing property.
For the seller I spoke with (above), I bought furniture and decorative pieces for staging, cleaned the place up, de-cluttered, donated his unwanted furniture, and advertised extensively on the internet etc.) The place sold higher than the market value and higher than what the seller was hoping to sell for, within 21 days. The seller paid full 6% commissions, and his 1% difference (between 5 and 6%) paid off five-fold. He was also very happy...
I feel that the real question here is: "How do I make the most money on my sale?" or, "What should I do to maximize my net on the sale of my property?"
If you find an agent that will make your investment in commissions (read marketing) well worth it,
standard compensation will be well deserved then, and your return (along with your net) will be gratifyingly massive.
Best of luck with your sale, and hope this helps,
Beachfront Realty, Inc.
Yes, commission rates are negotiable ! Commission rates can vary from 10% down. The best way to talk about commission rates is just to be straight forward with the agent about that issue. I would caution you that high end property does require additional marketing, however, you may want to pay for the additional marketing yourself in order to keep commission rates low. Also, you do want to offer the agent who brings in the Qualified buyer additional commission. Most homes are sold by agents with buyers.
Good Luck to you!
Consider beginning your shopping by becoming informed about the top area agents and companies in your location and then begin the interview process. Knowing what to ask can bring you the clarity you require. Total volume sale for both the company and agent, market share, internet visibility, services provided, ease with which to contact the company's call center, etc.
Hope this information is helpful.
But thanks for asking. We're dealing with an issue now where a client wanted to demand that an agent lower their fee right in the middle of a deal just to get the asking price lowered within their budget. This approach will certainly make your agent's skin crawl and send you packing.
I can do 1.5% as the listing agent and 2.5% for the buyers agent, and if your looking for another property as well I can represent you at 2.5% as your buyers agent with the listing at 1% instead. Goodluck! Definitely find an agent that best fits all your needs!
Commission rates for brokers/agents are negotiable - some brokers may also charge a minimum commission rate which the agent is not able to lower further. Customarily, the average commission rates charged to sellers in the LA area is between 5 - 6%, and half of that amount is usually offered to any agent who brings and represents a buyer who purchases the property. For a property in that price range, you should have no trouble finding a motivated agent, even for a commission on the low end of the scale. Good luck, hope this information is helpful.
John Barry, Realtor
Coldwell Banker Residential Brokerage
Commission rates are certainly negotiable but you need to remember that you get what you pay for sometimes. The best approach is to interview 2 or 3 different agents who work locally in your area. They'll present you with their marketing plan for your home and go over pricing with you as well as discuss the local market with you. Many agents will offer a discount on the listing commission if you work with them to purchase your next home. Here in the Chicago area, listing commissions are around 5% but I know that other areas differ.