Lb, Home Buyer in Mountain View, CA

Broker Fees for selling in Mt View

Asked by Lb, Mountain View, CA Fri Apr 26, 2013

Hi, I would like to know more about the more modern ways that the brokers and agents are charging for working on the sale.
I know the days of 6% commission are long gone, but are the new models?

Any ideas?

Help the community by answering this question:


Here are a few suggestions:

1. What is your sales record in the area?
2. What are your working hours?
3. How do you communicate? ie phone, email, text, facebook?
4. Do you answer your own phone?
5. After I sign the listing do you handle the daily activities of selling my home or do you have assistants that do the work?
6. How will you market my home? Internet, open houses, broker tours, single property web site, eblasts, fliers, etc?
7. What is your preferred pricing strategy? High, low, at market?
8. What are my selling expenses? title, escrow, transfer taxes, hoa fees, etc?
9. Do you like my home? What do you think the positive and negative attributes are? How will you enhance the positives and make the most of the negatives?
10. How long have you been in business?

There are probably more but these are a good start.

Marcy Moyer
Keller Williams Realty Palo Alto
DRE 01191194
Web Reference:
1 vote Thank Flag Link Mon May 6, 2013
It is a good start, yes, thanks
Flag Mon May 6, 2013
So, I contacted some agents and a lot of them are offering 2.5%+1.5% model.
However, as some of you have suggested, I should I know what I am getting

How do you interview an agent/broker?
What should I look for?

Any ideas on questions/suggestion?
0 votes Thank Flag Link Mon May 6, 2013
You have stated:”I know the days of 6% commission are long gone…”

You have asked: “Any ideas?”

Yes, I have an idea. My idea is that you are wrong. There are a variety of models embraced by a variety of Realtors in regard to payment for services rendered. You may discuss your ideas with any Realtor with whom you wish but I don’t think you will convince any of them that your idea is superior by accusing them of giving you a “sale pitch”.
0 votes Thank Flag Link Sat Apr 27, 2013
Hi LB,
Life is a simple equation, if I have self worth and solid self esteem, and recognize personal value in the service I provide to my clients that goes above and beyond expectations, every time, then i will charge My commission accordingly.......If I dont value my money, how will i value yours?
If I could buy the same shoes I get at Payless at Nordstrom, for a higher price, why would i go there......its all about VFM -value for money....... your expectations for the service provided.....based on that hire a full service Realtor and be happy to pay for it, as in return you will get what you expect, or then a discount broker, and adjust your expectations accordingly......choice is yours!
I work purely "By Referral", its a good way! If you need references, let me know.....
Wishing you only the Best,
Nina Daruwalla
0 votes Thank Flag Link Sat Apr 27, 2013
You ask a car salesman for a quote, and you will get a sales pitch.
You ask a contractor for an estimate, and you will get a sales pitch.
You ask an insurance salesman for some details, and you will get a sales pitch.
Have I helped you?
0 votes Thank Flag Link Sat Apr 27, 2013

I completely understand what you are saying, but I didn't ask for a quote. I was hoping to ask other buyers/potential buyers what they are experiencing.

However, the only responses I am getting are from agents :(

that's what I meant when I said, I am getting tired by "all the sales pitches"

Flag Sun Apr 28, 2013
I am getting a little tired by all the sales pitches in response to my question
0 votes Thank Flag Link Sat Apr 27, 2013
In general, the commission is certainly negotiable between 4%-6% not fixing.
All is about how you want to get your home sold and get the best maximum price.

When you hire the right Full-time Real Estate Professionals, You Can Tell when you work with the professionals together. You get efficiency, and protected with maximizing your $$$$. Not surprisingly, in most cases the sellers earn "more" money back on the sold prices, when the right person is doing right jobs for you.
0 votes Thank Flag Link Sat Apr 27, 2013
As the other agents say commissions have always been negotiable. So has what you get for that commission. There are many ways to sell a home, but I assume you want to maximize your net while minimizing your legal exposure.

1. You could put a sign up yourself, or an ad on Craigslist and someone would buy your home. You would get a buyer, but you would not have the information you need about what disclosures are need, how to deal with the hoa and what is required from them, or advise on what constitutes a good offer, and what your obligations are to a buyer. This way would decrease your expenses buy may not give you the best net by not having a competitive situation and has a lot of potential legal pitfalls. It does have the advantage of not having to deal with realtors which is a real plus for some people.

2. You could hire a discount broker who would make sure you have all the mandates disclosures, but may or may not give you the services you want, ie marketing, open houses, returning phone calls. You may find a good one, as many are, but you may not.

3. You could hire a full service broker who charges 5-6% and get a lot of services but you pay for it. The services you get are not uniform, so you have to ask. Some agents spend a fortune on newspaper ads (which I believe are great for the agent but don't do much for the seller) some have an extensive internet marketing plan. Some agents do their own open houses, some farm them out to other agents. Some fliers make the homes look fabulous, some are tacky.

4. Staging a home has been shown to be a very important way to increase the amount you get back, but it does cost $2000 a up depending on the size of your home. My model is to offer free staging to increase my value added to the transaction.

In the end, hiring a real estate agent is like being in a short term marriage. You need to trust this person with your most important financial asset, and lean on this person to help keep you doing things correctly. If you do not trust and believe in your agent then whether they charge 8% or 1 % you should not use them.

Marcy Moyer
Keller Williams Realty Palo Alto
DRE 01191194
0 votes Thank Flag Link Sat Apr 27, 2013
Did you know that some developers send announcements to agents that they will pay agents 4% rather than the previous 3% (half of the long gone 6%) if the agent brings a buyer? The developers consider it a cheap way to locate good buyers.

On the other hand there are buyer agents who advertise they will write up a contract for a buyer and charge significantly less. I wouldn't be surprised if you couldn't find someone to do it for perhaps 1%.

Commissions have been negotiable for decades. Price fixing is not allowed.

The hard part is knowing if a real estate agent who charges say 3% rather than 1% percent will deliver better results. Whether you are looking for a tutor for your child, a carpenter, a doctor, or any other self employed professional your first steps should be to find experienced professionals who have a record of delivering what you hire them to do. If you can't tell the difference hiring the cheapest one is one way to decide. Unfortunately choosing the wrong one can be costly.

In some ways real estate can be compared to baseball. Anyone can do it... but professionals win. Look at the agent's "batting average". Look at what their clients have to say.

You are competing with other buyers and with how effective you are at buying versus how effective you are at your own profession. Do you want to have skilled experienced help doing something you seldom do or perhaps have never done? Do you have time to waste on bad guesses? If your offer isn't accepted will you be able to find a house you like as much at the same price?

Juliana Lee
Top 2 agent nationwide at Keller Williams Realty, the nations largest realty
Cell: 650-857-1000

Over 30 years experience
Over 1,000 homes sold in Santa Clara and San Mateo Counties
Web Reference:
0 votes Thank Flag Link Sat Apr 27, 2013
Commissions are negotiable. Full commissions are not long gone. Commissions are based on several factors and it is best to interview your agents and determine what you want in an agent.

Much like a Dr. or an attorney. You get what you pay for. It's more than marketing, there is risk management, strategy, negotiating, market knowledge, contract knowledge and more.
Web Reference:
0 votes Thank Flag Link Sat Apr 27, 2013
Your response is only saying that I should expect to pay the age old 6% commission and you are just selling me the benefits of what I get for that commission.
I am sorry that helps me. That's not what I want to know.

To me, "You get what you pay for" applies in each profession, even a landscaper. He can also say, there isn't just landscaping, there is pruning, garbage disposal, leaf-blowing and more.
To him, I can say, I just want you to prune, how much would you charge?

I would like to know a similar model for agents. Can I hire them for specific purposes, etc?

Hope this helps clarify what I am looking for
Flag Sat Apr 27, 2013
Commissions are always negotiable - interview agents and find out how much they charge. Keep in mind that all agents have their strong points and weak spots. Don't select an agent based on commissions only.
Web Reference:
0 votes Thank Flag Link Fri Apr 26, 2013
ok, what are the things you would ask an agent if you were a seller?
Flag Fri Apr 26, 2013
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