2. you may or may NOT "get what you pay for"
The above being said, I don't agree that real estate commission are "so high", and as a result, are "killing many deals"........people kill deals............home inspections kill deals.....loan rejections and low appraisals kill deals.....etc.......
Commissions, whatever they may be, are the price of doing business, if you choose to do business that way.
If you don't want to pay a commission of any amount, you can lways try to sell it on your own as a FSBO..
Sellers do not forget, the agents are putting up their own money trying to sell your home and if a portion of commission rate does not cover their advertising costs, they will be working for free.
If you feel like the fee is too high and is a deal breaker, the best thing you can do is go to your agent and tell them that you would like to lower their fee. Some agents will lower their fee to make a sale go through but you have some agents that won't lower their fee because they feel like they put in so much work. The fee that was established is their motivation. If the agent doesn't wish to lower their fee, you can tell them that you want to cancel your agreement with them. At that time they will tell you that if you wind up closing a deal with a buyer that they brought to the table then you will still owe them a fee.
The counter is to make sure that any buyer after the listing is cancelled, run it by them to see if that buyer is in their log, if not then go to closing, if so then they most of the time they will be happy to get something than nothing.
Be upfront with your agent and let them know that you aren't happy with the fee and if they play hardball fire them.
Get an agent to work for you he/she must have your best insert up front.
IF YOU DONOT HAVE ONE BY NOW.
It would be nice to speak with you and I look forward in helping.
If I can be of further assistance please let me know.
Licensed Real Estate Agent
Century Homes Realty Group LC
Direct Line: 347-932-0609
Tom Brady SFR, e-PRO, SRES GREEN BPOR
Licensed Real Estate Salesperson
Notary Public, Retired N.Y.P.D. Lt.
"We treat you like family!"
Charles Rutenberg Realty, Inc.
255 Executive Drive - Suite 104
Plainview, New York 11803
at your home, the higher the offers the more money in your pocket at the closing table. Call or email me anytime for a free, honest and accurate appraisal of
your home and to find out how my marketing program will work for you.
Pam Dickman at Remax
Licensed Associate Broker, SRES, SFR, CBR
917-304-1212 or firstname.lastname@example.org
The seller may think that the commission is high because he/she may not understand all the costs associated with marketing, selling, and showing a property. Since we are also talking about New York City, the simple cost of being alive is quite expensive as well. That being said, let's review the following list of costs:
1) MLS Fees - The MLS allows the agent to list your property, exposing it to other agents and buyers whom may not otherwise be aware that your property is available.
2) Broker Fees - The broker typically collects 30%- 50% of the commission. The brokerage vets the agent to the seller. It is akin to eating food off a street vendor (no offense to street vendors here, I love street meat), or eating at a restaurant. Should one get food poisoning, a mobile restaurant can always drive away. The brokerage also provides training, counsel, and administrative support to the agent.
3) Advertising - In addition to MLS, a good realtor would also provide print, web, and other media advertisements. I just provided a professional photographer to one of my sellers yesterday.
4) Travel Expenses - Your agent can show a property hundreds of times before it is sold. Phone calls and gas costs money.
5) Coordination - Even after a meeting of the minds has been achieved the agent must still follow the project through to make sure that the mortgage broker, buyer's attorney, seller's attorney, and in some instances buyer's agents are all communicating.
The above represents just some general expenses and duties of a licensed real estate professional. I am sure more can be pointed out by others. Taken together, the above points and duties serve to increase the value of the deal. Thus the initial commission should not be the only consideration in choosing an agent. If cost were his only criteria in choosing an attorney OJ Simpson may not be a free man today.
Thank you and good luck.
Licensed Real Estate Salesperson
Exit Realty By The park
Homeowners who hire based on commission and not ability, often end up paying for it...in more ways than one.
The only person who can kill a deal is you. If it helps, the commission can be tax deductible from your gain and you will save more on your income tax.
A low commission does not mean you get more money in your pocket, ususally the opposite. The less the agent makes the less marketing they tend to do. They cannot/will not spend more money than they make. .... the value is what a buyer is willing to pay- not what sellers think it is worth. Terry K 718-61403167 cell or email TKorahais@elliman.com
Legally, there is no "customary, usual or typical" commission!
ALL commisions are negotiable.
Yea Joe - et al - always happy to see you jump in with these sort of questions!
I aam sure that it varies everywhere. But, you get what you pay for so I would caution you not to look for a low cost company. Typical for my area is 5-6% and 5.5% is the average. Remember that each broker gets 50% and then the split of the agent may vary as well.
Good luck with you listing!