Home Selling in 48813>Question Details

Jmouse, Home Seller in 48813

Are realtor commissions negotiable? We were considering listing by owner but dont think we'll get the exposure we need.

Asked by Jmouse, 48813 Sat Apr 23, 2011

With market values dropping, we're not sure if we could get enough to pay the house off and pay 7% in realtor commissions. We could probably do 3-4% total, however, we didn't know if that was even feasible. The selling price would be somewhere around $170,000 so it's still a decent amount of commission. Just wondered if any realtors would consider a deal for only 1.5-2%.

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Hi, I agree with Mack. Some agents will negotiate commissions but make sure you aren't compromising on communication, marketing, and any other services if they do. Besides the homes location and condition, marketing and pricing are the two most imprtant factors when selling a home. Be sure to ask your agent how far beyond the local MLS they will go to market your home. Statisitics show that 90% of homebuyers are beginning their search on the internet and last year 61% of those people were first timers.

Another factor to consider is the agent typically splits the commission with cooperating brokers if they help sell the home. Then they typically have a split with the agency they work for and then taxes. So after all said and done the amount of money that will go into the agents pocket is peanuts. I'm not sure you will get top notch service for that amount.

Christopher Pagli
Licensed Associate Broker
Accredited Buyer Representative
GREEN Designated Agent
William Raveis Legends Realty Group
914.406.9023
1 vote Thank Flag Link Sun Apr 24, 2011
J,

It is commonly understood that realtor's professional fees are negotiable. However, in the event you are seeking to discount these fees to 3-4% you would likely end up with a discount broker....one that offers less than full service.

As you mention, you should be concerned about your home's exposure. The reality of using a less than full service agency would likely decrease the level of service you receive......

If this is your plan, we recommend requesting an account of the agency's comprehensive marketing plan in writing. This documentation should spell out everything they plan on doing to sell your specific home. It will also provide you with a guide to use when keeping track of your home's sales progress.

1-2% would definitely find you with a discount brokerage and seriously limited services that may not include much more than listing the property on the local MLS and putting a sign in your front yard.

Good luck,

Bill
1 vote Thank Flag Link Sun Apr 24, 2011
Commissions are always negotiable between you and your agent, there are no set standards; therefore consider interviewing in person a few local agents from different realty companies, then choose the one you like best; choose your agent with care.
1 vote Thank Flag Link Sat Apr 23, 2011
They certainly are! Well, I take that back. Some agents and brokers will negotiate, some offer lower prices without negotiation (in a negotiation, there's give and take, right - so they'll take a lower fee, and you'll take fewer services, maybe?), and some won't, for whatever reason.

The important thing is that you receive value for the commissions you pay, because while you may not get what you pay for, you probably won't get more than you paid for!

Keep in mind that a lot of great agents who are getting tremendous exposure aren't getting their listings sold . . . that doesn't mean that you can get a property sold without going "all out," but it does mean that you really have to make agents want to show and sell your property.

All the best,
1 vote Thank Flag Link Sat Apr 23, 2011
If they charge less, they are probably
Web Reference: http://GoMelinda.com
0 votes Thank Flag Link Sun Apr 24, 2011
As indicated by other respones below, commissions may be negotiable with some brokers. If you are thinking trying the For Sale by Owner option or selecting a real estate agent, I have short articles on my website that discusses both. If interested in reading these articles, under "my pages" click on the articles of interest including For Sale by Owner Option and Selecting a Real Estate Agent Tips.. Happy trails to you and yours.
0 votes Thank Flag Link Sat Apr 23, 2011
Commissions are always negotiable. I have to say 7% is high, although I really can't discuss specifics of commission due to anti-trust regulations.

Laura's suggestion is a great one and I would also recommend rockinblu's blog: http://rockinblu-rockinblu.blogspot.com/ which has a lot of good information for fsbos (although I noticed a certain obsession with cars on my last visit). It may take a little searching to get to exactly where you need but he has pretty much anything you may want to know regarding the fsbo process.

Interviewing and finding an agent who will work well with you and for you is very important. Don't go for the cheapest just because its the cheapest. On the other hand if an agent tells you that you get what you pay for, RUN.
0 votes Thank Flag Link Sat Apr 23, 2011
Yes, commissions are negotiable. There is no usual commission! Each real estate company is free to set its own fee schedule and to negotiate various rates with individual buyers and sellers. Any agreement between two different firms to set standard rates, however, is a serious violation of antitrust laws. Violations occur when competing firms agree to act together, this is what the US Justice Department calls restraint of trade. There is no set fee, fees are negotiable.
Web Reference: http://www.clovelake.com
0 votes Thank Flag Link Sat Apr 23, 2011
Some Realtors are negotiable on their commission. If you haven't spoke to a Real Estate agent to do some math and see where you need to be, you should. The first thing your agent should do is a CMA to see where your house's market value is. Agents can spend $200 to $500 on advertising and marketing materials to get your house sold as quickly as possible. If you have any questions, feel free to call me or email me.

Ryan Halsey
Team Leader/Associate Broker
Premier Realty Team of
Keller Williams Realty-Charlotte
Cell 517-331-1676
halseyry@core.com
0 votes Thank Flag Link Sat Apr 23, 2011
Realtor commissions are negotiable. I am with Keller Williams/Premier Realty Team in Charlotte.
If you would like to discuss your situation, call me at 517-331-0773

Thanks, Teresa Redfield
0 votes Thank Flag Link Sat Apr 23, 2011
Hello Jmouse,
You could consider listing your home with a flat fee agency which is less expensive. They won't market your property as extensively but at least you'll get it posted on the Multiple Listing Service for agents to see.
Hope this helps.
Good luck!

Laura Feghali
Prudential Connecticut Realty
0 votes Thank Flag Link Sat Apr 23, 2011
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