X = what you negotiate. Per the Sherman Anti-Trust Act! Kelly - if I were you I would DELETE your answer ASAP!
As for the "Split" This is negotiated between the Broker and the agent. Every agent has a different split. What folks dont realize is that AFTER that spilt - we have to pay Taxes, Federal, State, SELF-EMPLOYMENT, licencing fees, MLS and NAR and local Association Fees and Dues, Gas, our phone bill, oh yeah and our mortgage, food..... You get the idea.
I think what they are trying to tell you is don't give up the job at the grocery store. real estate isn't the easy money it was just a year or two ago. besides, in a recession people will still need to go to the grocery store. think of it like job security.
Don't you just love it when the agents catch each other in: " ... ooop's, did I say that ...?..."
... >>> Kelly - and any other Realtor who makes a statement like this last one: It is Against The Law to make a statement like that! Homes carry an X % commission rate; as does Land.
>>> X = what you negotiate. Per the Sherman Anti-Trust Act! Kelly - if I were you I would DELETE your answer ASAP! ...
: ^ )))
>>> "Homes carry a 6% commission rate and Land 10%. What most people don't understand is that the company the agent works for gets 50% of that, then it is split between the agents involved. For example, with a $5000.00 commission: the Listing company will get $2500 and then the agent will get 50 to 80% based on their plan. The Buying Agent's company gets the other $2500 and splits with their agent the same way."
(nothing new here boys and girls..)
I believe you were told 6% - then.
But in todays market, you have agents that haven't had a closing in 6 months ... when the agent doesn't get a check either does the broker/manager.
Some have gone to 3% (2% listing, 1% buyer) and you have quite a few that have gone to a flat fee ... a $400,000 sale is a $8,500 flat fee sold in 45 days, 46 to 90 days $9,500 etc, etc ....
Many will and many are negotiating their commissions ...
Keep in mind .. the worst headache an agent can have - is a "broke headache" ..
It depends on "where" in the south ...
Most agents will tell you 6 or 7% ... the reality is, it's slow and they're a lot of good agents out there that will do it for 2%, with the buyers agent getting 2% ... it's all negotiable - very negotiable.!