When sellers negotiate commissions with listing agents they should keep in mind that the buyer's agent is under no obligation to accept that which the listing agent offers since they may have their own contract with a buyer which specifies their commission.
Home buyers would do well to use an exclusive buyer agent which can be found at:
I'm so glad that you've asked that question because many don't understand exactly what is involved when listing a home. There are a lot of factors that determine a listing fee. When you list a property, the agent/agency carry expenses in the listing of a property. There are MLS fees, advertising costs, marketing materials and of course the time paid to the agents in helping an owner sell a home. Agents spend time in marketing a home, especially in a market that is saturated with inventory. You have to take more time and effort in sellng a property and doing a good job for the owner.
Then once you get a buyer for a home, there are a number of other reponsibilities that an agent/agency takes on to make sure that both parties get to the closing table. There is a lot of time an real estate agent/agents spend to make sure both customers are satisfied in the end.
Buyers generally don't paid the fee. The sellers pay the listing commission upon closing of title. Please contact me anytime. I would be more than happy to explain the process in further detail. Thank you so much for your question.
The agent puts the house in MLS, a sign and does some paper work. The agent uses their knowledge and that of their office and network to sell your property.
What is the difficulty?
There is no difficulty if a buyer and seller agree on the price.
Sure, if you price it high, the agent will spend monies marketing a property that may never sell at the high price and waste time.
My accountant charges 50 bucks for a 1040 EZ form. The client is in and out in a 1/2 hour. I pay 10 times that amount because my taxes are much more complicated and, therefore, he will spend a lot more time. This is not all that different.
Actually, there is one big difference. At least the accountant will get paid. There are many, many situations where the realtor will provide all the services and still walk away with the nothing. Maybe the home didn't sell or the buyer was not as loyal as we thought. There are numerous situations where a transaction falls apart or never materializes at all even though there were countless hours of effort.
This is a big problem in this market and the realtors are starting to get a little smarter. They are a bit wiser when it comes to taking listings and they want to know there is some possibility of actually getting paid. Sometimes its ok to charge a little more and many times it's best to just walk away. Not all business is good business.
If the home is clean, in a good location and it's priced right then - we could easily list the home on the lower side of the scale. The likelihood of success is pretty good.
Or what if the house is a train wreck, on a busy road with an underground oil tank, a septic and a well? Then I would probably just walk away. And of course, we have many in between that are not in the first or second category and they fall somewhere in between. It's in these cases; an additional premium is usually negotiated.
Short sales are our biggest challenge of late. These require a lot more work and the fallout is extremely high. Experience says that a premium must be charged for all the additional work required to get the home to a successful closing. We didn't create the problem - why are we expected to correct it for a lower fee? Answer: We don't. Even the lawyers have raised their fees in these cases so the added costs vs the added work is justifiable.
Bottom line - Every agents "bottom line" may be a little different. If the home presents a lot challenges, it's perfectly acceptable to pay an additional percentage point or more. An agent who demands the additional fee is probably experienced enough to recognize these challenges in advance and can get you through the process. On the other hand, an agent who will accept a low commission for a difficult sale probably doesn't have the experience to recognize the problems in advance, and won't be able to negotiate or maneuver you through all the obstacles.
Besides, if he is willing to give away his own money that fast - what will happen when it's time to negotiate your money?
And always interview at least 3 agents before you make a decision.
Best of luck!
All commissions are negotiable in NJ. When you interview agents it is important to know just what you are getting for the money you are paying. Some agents will put your house on the MLS and be done with you. Others will offer services such as those mentioned above which might include walking your dog when there is a showing. You will get what you pay for.