Home Selling in Santa Rosa>Question Details

Jason P., Both Buyer and Seller in Santa Rosa, CA

How much commission should I pay my agent? THe selling price is expected to be around $100,000.

Asked by Jason P., Santa Rosa, CA Tue Dec 6, 2011

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The normal commission rate is 5-6% of that fee unless the listing agent has the buyer he also splits half with the selling or buyers agent then he splits again with his Broker. Now if it's a short sale the going rate is 6% and sometimes more, but you don't pay it the bank does, so it could be 10% for all you care as it doesn't come out of your pocket. If you need any help please just gove me a call

Brenda Alarcon 707-953-3444
Bradley Real Estate
1 vote Thank Flag Link Tue Dec 6, 2011
For what it is worth, although many agents don't seem to understand this.....commissions, by law, are negotiable.

There is NO "normal", "customary", "usual" or "standard" commission, and agents should not state or imply there is.
Agents who are foolhardy enough to discuss this in open forums may leave themselves open to anti trust law issues, as it may be seen as an attempt to fix prices.

Speak with and interview a few agents to see what percentage they charge, and what they will do for you....ask for a written marketing plan.

There are also companies who may offer an a la carte menu of services as their business model.
Do you due dilligence, and focus on the big picture, not just the commission fee.

Best wishes!
2 votes Thank Flag Link Tue Dec 6, 2011
Jason,
Ask them what they expect. Commissions are negotiable and a good agent is worth more than whatever you pay them and a bad one will cost you way more than just the commission. This subject should not be difficult for your agent to address, its part of our job. Their office may have a policy regarding this and each company can act as they feel best suits their market. Just ask.
2 votes Thank Flag Link Tue Dec 6, 2011
Debbie is so smart! :-)
1 vote Thank Flag Link Wed Dec 7, 2011
Alan May, Real Estate Pro in Evanston, IL
MVP'08
Contact
Jason,

Although there are often "customary percentages" in particular areas - in San Francisco it is typically 2.5% for the buyer rep and 2.5% for the seller rep - commissions are negotiable.

The seller sets the amount for both the listing agent and the selling (buyer's) agent, and they are not always the same. The reason I mention customary percentages is because if you are offering less than that many selling agents will not bring in buyers if they are making less money. If you offer the same thing other agencies do you will be on an even playing field in that regard.

With regards to your listing agent, you should pay them enough to be incentivized to work hard for you, but make sure you are getting the best because it makes a huge difference who you hire. Properly preparing a property for listing and marketing is a lot of work, and when someone is good at it it will pay off in the end.

You can talk to a local title company if you want a completely unbiased opinion about what percentages are normally being paid out, or ask several realtors.

Best Regards,

Lance King/Owner-Managing Broker
lance@fixedrateproperties.com
415.722.5549
DRE# 01384425
1 vote Thank Flag Link Wed Dec 7, 2011
Every brokerage is different. I guess its a company rule that some brokerages cant go below a certain percentage but at Ownerland Realty, where I work, I am aloud to negotiate my commission. I flex my commission depending on the situation. I have charged anywhere from 3.5% to 6%.
1 vote Thank Flag Link Wed Dec 7, 2011
Hi Jason, it depends what kind of real estate you're selling and many other considerations! If it's a mobile home, the rate can be up to 10% for the commission for both buyer and seller's commission. If a home, usually 6%. Right now banks are paying agents usually 6% commission, and if you want to be competitive that's the thing to do. But your first thing to do is to start talking to agents about what is the best way to market your home and get it sold. It doesn't matter what commission you are willing to pay if your home won't sell or the pricing isn't right! All commissions are subject to negotiation and you will see some agents that will list for 5%. But the question is, what will it take to get your home sold and what are you willing to pay to make that happen. Listing agents have to pay for advertising and open houses and all the things that attract customers, so find out what you get for that commission! There is a lot of competition now with foreclosures and short sales and your first step is to find an agent to help you navigate through all the challenging obstacles. I hope you'll check out my website or give me a call for more information. Best, Terry Bell, CPS Real Estate, Santa Rosa 707-292-5712
1 vote Thank Flag Link Tue Dec 6, 2011
Make your agent happy: 6% listing contract is far enough deal for all the parties(seller, sellers' agent, buyers'agent)!!!! :D

Mantas Raulickis
LUXURY HOMES DIVISION
Realty ONE Group, Inc

Cell: (702)-336-6610
Office: (702)-588-6868
0 votes Thank Flag Link Wed Dec 7, 2011
Bear in mind that what you pay your agnet is also part of what you offer to the buyer's agents out there who have the good, pre-qualified buyers in tow. So it may affect the bottom line. It is not unheard of for agents to avoid listings that do not provide them with a commission they consider fair or normal.
0 votes Thank Flag Link Wed Dec 7, 2011
How can I argue with a comment like that Alan!! haha
(thanks)
0 votes Thank Flag Link Wed Dec 7, 2011
Commission is always negotiable between you and your agent, there are no set standards; therefore interview in person a few local agents from different realty companies, then choose the one you like best and who has the most to offer; choose your agent with care.
0 votes Thank Flag Link Wed Dec 7, 2011
I would imagine that you have already negotiated your commission when you listed your home. Refer back to you listing paperwork/talk to you agent.

Good luck on your sale!
Jeanne Feenick
Unwavering Commitment to Service, Unsurpassed Results
0 votes Thank Flag Link Wed Dec 7, 2011
Not quite sure I understand the question. Didn't you negotiate this before you hired your agent?
0 votes Thank Flag Link Tue Dec 6, 2011
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