Home Selling in 07052>Question Details

Charlie C, Both Buyer and Seller in San Francisco, CA

Overall Real Estate Commission if Listing Agent also Represents the Buyer?

Asked by Charlie C, San Francisco, CA Sun Nov 27, 2011

In Florida, there is a standard to discount the commission if the listing agent also "represents" the buyer. I believe the standard fee is 3%/3% but it is discounted to a total of 4.5% if the agent represents both.

Is this a similar practice in NJ?

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Jeanne Feenick’s answer
Hi Charlie, I am in Somerset County, NJ, so in the local market, but do not serve West Orange. What I can tell you is that you have heard from a respected peer of mine here in NJ and here on Trulia and that is Debbie Rose. She's given good advice and would be a great local contact if you are selling or buying in her market.

Good luck to you,
Jeanne Feenick
Unwavering Commitment to Service, Unsurpassed Results
1 vote Thank Flag Link Thu Dec 1, 2011
Charlie - As you can see, I am local to the area....(an old West Orange gal, as I lived there while in elementary and middle schools!). My office is in Livingston (near the Ritz diner!!).

Let me add my "local" voice and say that there is NO standard commission or practice of discounting any commission if dual agency is the business relationship. There is not standard commission either!

As independent contractors, every one of us, whether in NJ or CA or AZ can decide how to handle our commission structure - our Brokers also play into this decision, as well.

Seriously, you really need to discuss this with individual agents (call me, and I'd be happy to discuss it further), as there may be some who are willing to charge you less if acting as a dual agent....many will not offer any kind of "discount". It will vary, and is negotiable..

There is no standard operating procedure here in our area, whether one is acting as a dual agent ....or seller's agent ....or buyer's agent.

Just a word of advice - focus on the big picture - the entire marketing plan.... and not just how much you will be charged.....

Best wishes.......
Prudential NJ Properties
email: Debbie.Rose@PrudentialNewJersey.com
1 vote Thank Flag Link Mon Nov 28, 2011
All commissions are 100% negotiable in NJ but you'll be hard pressed to find anything below 5% because at that point it's hard for the agent to make money after all expenses incurred. Also, offering anything less than 2.5% commission to buyers agents sometimes will turn them off on your listing and rather than running to show their client your listing, they won't have as much urgency.
0 votes Thank Flag Link Thu Nov 21, 2013
All real estate commissions in NJ are negotiable. The best way to find out what it will cost you is to interview a few realtors and see what their services include for their fees. Choose the one that you feel will best represent and market your property on your behalf for the highest and best price and take care of all the details that come with selling your home.
0 votes Thank Flag Link Mon Oct 7, 2013
I don't know anything about Florida real estate law. However, in New Jersey, all commissions are negotiable.
0 votes Thank Flag Link Sun Apr 29, 2012
To Debbie, meant every word!

My best,
0 votes Thank Flag Link Fri Dec 2, 2011
thanks for the kind words, Jeanne - much appreciated!
0 votes Thank Flag Link Thu Dec 1, 2011
Commission is negotiable between you and your agent, there really are no set standards regardless dual agency, or not, as it would go against Federal laws....http://www.justice.gov/atr/public/guidelines/211578.htm
0 votes Thank Flag Link Mon Nov 28, 2011
Charlie - I know I'm not in New Jersey, so you're going to "discount" my answer, too...

but there just is no standard, not in San Francisco, not in Florida and not in New Jersey. Stating that there IS a standard, is a violation of the Sherman Anti-trust act. So while you may believe that there is a standard, you're just not going to find an agent willing to state in writing, on a national website no less, that there is.

And in fairness, there really isn't... because some agents will negotiate their commission to represent both transactions... and some won't.
0 votes Thank Flag Link Mon Nov 28, 2011
Alan May, Real Estate Pro in Evanston, IL
Thanks for the answers but...I'm not really looking for the generic answers that have been specified...I'm looking for the local situation re Dual Agency in West Orange, NJ.

Every part of the country has different "standards" of practice. While it is all negotiable, I have found if you adhere to local practices - you get better services.

I know in Florida - dual agency = lower overall commission. California - dual agency = full commission. Percentages overall may include or not include explicit marketing costs.

In addition, I am hearing that there is also listing discounting going on in the NJ market (3% to the buyers agent - remainder to the sellers agent). This is not happening in the CA market. I didn't get the sense of discounting going on in the FL market.

So I would appreciate a more specific answer from someone who services the West Orange, NJ area.

0 votes Thank Flag Link Mon Nov 28, 2011
I'm sure if you talk to some local agents and tell them that you want the commission to be discounted if they represent both the seller and the buyer, you will find one that agrees to that. Just make sure that you put it in writing.
0 votes Thank Flag Link Sun Nov 27, 2011
You have the option of negotiating this and it should be discussed upfront before you sign an agreement with your agent.
0 votes Thank Flag Link Sun Nov 27, 2011
Hi Charlie,

There is no "standard" commission. All commission is negotiable. The listing contract should state what the commission is going to be. It should also state if the commission is going to be reduced (and to what amount) if the listing agent is also going to be the selling agent/buyer's agent (dual agency). If it is not stated that there is a reduction due to dual agency, then the seller is obligated (by contract) to pay the full commission to the one agent - unless they can convince the agent to alter that.

Shanna Rogers
SR Realty
0 votes Thank Flag Link Sun Nov 27, 2011
There is no "standard" for discounting. Commissions are negotiable, not all agents will discount, some may dicount more than others, in real estate as in life you usually get what you pay for, so if you are paying discounted fees, you often end up with discounted services. Listing a property requires a certain and specific amount of working. Working with a buyer requires a completely different and additional set of challenges and work to make the sale work. if the listing agent is working with a buyer agent, they can gove half to a buyers agent who is doing half the work, if they work with the buyer and the seller, it is not half the work and in most cases definately earn both sides of the commission sale.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Sun Nov 27, 2011
All real estate commissions are negotiable, period.
There is no standard fee.
0 votes Thank Flag Link Sun Nov 27, 2011
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