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There is no "standard commission". ALL commissions are negotiable by law.
I am guessing that your real question is something on the order of "How can I net the most money when I sell?" But since you did not ask it I'll wait until you do.
You should know a couple things about commissions and service.
I monitor MLS Entry Only Brokers and Discount Brokers performance in my market and compare them on a quarterly basis with Full Service Brokers. You might find their results interesting:
1. Listings taken by MLS Entry Only and Discount Brokers FAIL TO SELL twice as often on average.
2. When they do sell they sell for an average of 2.3-2.7% LESS than those sold by Full service Brokers.
3. If they sell they take longer to sell.
So, if you go with the "save money on commission" broker, it appears that in most cases what you save on commission you lose in sale price.
Why would that be so?
A few more facts that might help you:
On average, about 20-30% of homes that sell do so in the first 30 days on the market and they sell closest to asking price. In my market they sell at 99.7% of asking. Homes that sit on the market (at 120 days on market) are selling at 92.3% of asking price.
So when you hire a Realtor how do you know if they are in the 20% that market listings correctly and price them right, or the 80% that have listings that sit on the market and sell for less later?
The fact is that the best Realtors are not working at a discount. They simply cannot afford to work for less. OTOH, my experience, as a Realtor, is that the MAIN tool that discount brokers offer is the DISCOUNT.
Hope this is helpful. Remember - you get what you pay for. Talk to a couple of Realtors. Ask them to analyze your situation, then make a proposal. Compare them, pick the best one.
Thu Jul 30 2009, 08:00