Unfortunately, there are agents out there that donâ€™t follow the rules and will ignore a property if they feel the commission is too low. In many States this is illegal and unethical. But it happens nevertheless.
Remember that there are so many homes not selling right now. Unless you are priced right going on the market for the first time, your agent will spend a great deal of money marketing your property as well as the cost to drive out to show it to prospects. You need to keep in mind that a good portion of the commission goes to the buyerâ€™s broker. So the agent needs to keep within a budget.
Discount brokers provide discount service. They just cannot afford to provide full service at a low commission.
Hope this helps!
Shoreline Property Specialist
Coldwell Banker Residential Brokerage
Our company offers 3 listing packages, all of which are full service. At our basic listing (silver), the seller will receive all team support, all internet marketing, and full service representation for broker open houses, scheduling showings, follow up, market updates and full service negotiations. Our middle package (gold) adds premium positioning on internet sites, virtual tours, and print advertising. Our premium marketing package (platinum) adds a single property site specific to the property, a floor plan, and comprehensive weekly updates with strategy recommendations. (My descriptions were not all inclusive, only illustrative.) Our last two listings that had the platinum package resulted in multiple offers each which raised the sales price. Both of these sellers firmly believed the investment brought a worthwhile return. While we could never guarantee these as results, we are confident that the additional marketing was key in the success in finding buyers. We are in a soft market, with properties sitting for months without activity, many listings expiring, and lots of price reductions. You are also paying brokerage fees for representation, negotiating, and advice. A good agent will contribute value throughout the transaction beyond marketing. The fees you pay should be appropriate for the level of services and expertise delivered.
At our company, the expenses we incur to market properties have substantially risen. We post at many â€˜freeâ€™ listing sites, but paid staff members work in offices where they post and monitor those listings daily. We also pay for premium positions on some sites, and post at sites that do carry fees.
The fees you pay to a broker do not represent income. It is a fee to cover business expenses and pay office expenses, salaries, computers, phones, etc., and yes, turn a profit.....hopefully.
There is no magical number that is the right fee to pay. Do carefully compare what you will receive for what investment in your marketplace. The best way for you to know the right price for you to pay is to meet with a few Realtors and ask them to deliver detailed proposals. For you and your property, the right marketing approach may be different than for someone else.
Although I could cut my commission, that just would not be fair for the other homeowners paying me full commission (which is what I decide and will not disclose in this forum) to market and sell their home: So I don't. Lastly, I sleep very well at night, without any guilt feelings.
I would love to participate in this discussion, but you should all be aware that this violates the Anti-Trust laws. Doing this violates your licensing law requirements and there are heavy fines and possible license suspension. So to my fellow colleaguesâ€¦..please be careful!!!
Melissa Mancini, Realtor, CBR, GRI
There is more to consider than the fee when choosing a realtor. There are many limited service brokerages that charge a low fee, but they also offer fewer services and sometimes have charges for things like signage, advertising, paperwork, and attending the closing. Limited service brokers tend to ammass as many listings as possible, do a minimum amount of marketing and provide a minimum amount of services. Limited service brokers focus on volume in order to stay profitable.
A true full service brokerage handles all of the details for you, and the initial fee includes everything with no hidden charges. Their rates would generally be higher than a limited service broker, but the level of service and the end result is much better. Final sales price and days on the market are usually much better with a full service broker. Many agents claim to be full service, but do not do the work. Make sure that you ask as many questions about their education, marketing plan, and the services they offer as possible.
Keep in mind that many brokers work on a commission basis and that no fee is paid until your home closes. If they do not do the job, you don't pay. It may seem that paying a lower rate would be best, but if you and your home are not getting the exposure and service needed to sell your home, it may sit on the market for a longer time, or not sell at all. With limited service brokers, you may be paying marketing fees above the commission during the listing period, even if your home does not sell.
Be sure to consider your market, the level of service you require, the final selling price desired, and the time you have to sell your home when considering what type of broker to employ and what type of fees you are willing to pay.
A good realtor does much more than market your home. They know their market, give a high level of service, and are experts in contract negotiation. Your realtor's goal should be to sell your home for the best price in the shortest amount of time. She should have a difinitive plan on how to achieve this goal.
Everyone wants things three ways...good, fast, and cheap. However, you usually only get two of the three. The bottom line is, in real estate as in all things, you get what you pay for.
The cost of doing business in residential real estate has never been lower than it is right now. Unfortunately many agents and brokers will try and tell you that anything less than full market commission is discount service. Many of these so called professionals just don't know how to utilize these new and improved technologies to drive down costs.
I am eager to see what others have to say.
What is most important is working with an agent that has the expertise to market your home to include maximizing Internet exposure through social media and real estate sites. What is their plan.
The Keys To Charleston LLC
Many agents here have said the same things, such as when you pay discount brokerage, you may get extremely discounted services or you may wind up paying more as-you-go for things like marketing and advertisement. Of course there is also the incentives to buyer's agents that need to be considered as well. When looking for an agent, look at things like how many resources they have for marketing your listing, and even though there are many inexpensive to free ways for agents to market your home, those same things also take up time to keep up with and monitor. I know it is not something folks want to hear that you get what you pay for, but that is not always the case, but many great agents will give the service that you need and will work hard to get your home selling goals accomplished.
What it comes down to is what a seller and realtor are willing to come up with that will work. There is no 'fixed' fees, and we are not allowed to fix fees, but for something as big as the purchase of a home, it is worth it to get the best for what you are willing to pay for selling your home as quickly and for as much as you can get for it.
Feel free to contact me with any questions!
The Agent Owned Realty
901 Savannah Highway
Charleston, SC 29401
MSgt USMCR ret.
You may want to chose between paying your listing broker 0.5-1% upfront, or paying 3% at closing. This does not include the Buyer's Agent's commission.
In the end, and I know you've heard this before... You get what you pay for. If you're hunting for a bargain, expect sub-quality performance. Time is money for everyone.
Very good question.
Many areas of the country and even in South Carolina have local customs. In the Charleston Metro area it is 6 percent. I find alot of agent who except less 5.5% and 5% but I think they sell you short. We all can agree that we are not in a ideal housing market, with that in mind Realtor's need to increase there marketing cost with homes remaining longer on the market. Realtors are human (yes it's true) and they will not spend all there commison on marketing so how much they are compensated has a direct correlation to thier marketing expenses. Also as sales slow down Realtors expenses stay the same but income decreases, so they look for new ways to increase their income. The easiest way is to show the first grouping of homes to a new buyer that has a three percent commision to the selling agent. This always increases showing and usually will help to sell your home sooner.
Patrick J Tivnan
In a "previously life" (prior to becoming a Realtor), my husband and I transferred with his company 12 times in 13 years. My moves were usually unexpected and selling my home in the least amount of time for the most amount of money was extremely important. I did extensive research in the local market to find out which Realtor had the greatest success in the neighborhood the home was located (based on lots of different criteria) and ultimately chose my listing Agent based on their "statistics", not the fees they charged. You are essentially choosing the "individual" success and work ethic of the Agent you choose, not necessarily the Company they work for. I would highly recommend doing a little "homework" and make a decision based on "actualities"; not an arbitrary percentage amount. Keep in mind, "better" is not always more expensive and what is "fair" is usually what it takes to get the job done within the parameters you have deemed important.
I dont know where you are getting your info. Which asnwer are you referring to? No one here is setting a price. Colluding together to set a price IS a violation.
Everyone is answering the question.
I have a fixed listing fee of $3,000 and I rebate 50% of my buyers commission paid by the seller to my buyer clients.
The Feds encourage competion.
See the attached link. It makes it easier.
Check out this model:
Real Estate fees HAVE decreased and you should have no problems finding just the right real estate agent at whatever fee you'd most like to pay. There are many new real estate models that agents use to sell homes.
If I were fortunate enough to own a home that had doubled in value in a short 4-5 years I would be thrilled when it came time to sell. I have $250k more than I did 4-5 years ago. If you lived here in Texas you'd be really ticked. Not only would the real estate commission have doubled but so would your property taxes. We pay some pretty hefty property taxes here in Texas. Anywhere from 2-4% of the homes appraised value. In 2002 you were paying $7500 a year in taxes ($250k home at 3%) and now in 2007 you'll be paying $15,000 for your taxes ($500k home at 3%).
I wish I still paid $1.50 per gallon of gas....no such luck though!
In the final analysis, we always get what we pay for. When an agent tells you, "i'll do it for 1 % or I'll do it for a flat fee...." always, always ask, "Please tell me what you provide for that fee."
Thank you for this opportunity.
RE/MAX Town & Country