Commission Question: If I am using the same real estate agent to sell and buy a house...

Trulia Markerman
Both Buyer and Seller
San Francisco, CA

What should the commission be on the sale of my house? Thoughts and advice from all are appreciated.

Answers (3)
Keith Sorem
Agent
Glendale, CA

T
Great and fair question to ask.

The commission agreement for the sale of your current property is negotiated between you and your Realtor.

The commission agreement for the purchase of your next property is not negotiated by you. It is, just as your was, negotiated between the listing agent and the seller.

Contrary to most people's perceptions, Realtors are not rich. A normal split between the employing broker and the Realtor is 30-50%. That means we earn 50-70%. After paying taxes, errors and omissions insurance, promotion, education, etc. most agents probably live on 25-30%.

The way to look at your question is really this: who is the best person to serve my needs? Only 35% of Realtors nationwide are full time. If your Realtor is in the few that dedicate their lives to working full time in Real Estate, are competent, good negotiators, and know their business, is it not worth it to go to sleep at night knowing that you are in good hands?

Tue Aug 11 2009, 13:21
Scott Riggsbee
Broker
Pinehurst, NC

There are several agents out there that will give you the "blow smoke up your ***" answer, but the truth is it should depend on several factors. Commission is always negotiable and these factors should be taken into account from both sides. 1) How long was the listing on the market and what type of marketing dollars were spent to sell that property. You can't expect a professional to spend good money getting a home sold for you, only to take a commission cut and barely break even. 2) How much business have you done in the past, and will you do business again in the future? This may have an effect on how much your agent is willing to work with you, if he knows that you have been or will be a source of recurring revenue for his business. and 3) Ultimately the commission that's offered on the home that you buy will probably come from the seller's pocket and not yours. That is spelled out in the listing agreement that your agent doesn't have anything to do with.

Sometimes we see sellers that expect an agent to hardly break even or worse yet not make any money on selling a listing, when they represent that individual in buying another home. It's kind of like going to your attorney and saying since I let you represent me on this case, I want you to invest in another 60-70 hours of work for me for free. Or going to the grocery store and saying well, since i bought my groceries here this week, I want to come back next week, get just as many groceries and not pay a dime. It's just not sensible. And if you have a good agent, the hurdles that they will guide you through, and the better price that you'll get on your new home will more than make up for some small reduction in payment for work that's ALREADY BEEN DONE.

Ultimately you have to ask yourself, what did I agree to pay for commission on the listing? One side of the selling transaction has nothing to do with the other transaction.

Tue Aug 11 2009, 12:12
Abraham Mills
Agent
Greenville, SC
FIRST ANSWER

Your agent should work with you on this. Just let you feelings be known, and don't be afraid to ask him/her if they are willing to cut you a break on the commissions. I surely would if you were working with me!

Good Luck!

Web Reference: http://www.abemills.com
Tue Aug 11 2009, 09:58

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