Rosedale, Home Owner in Jamaica Estates, Que...

What is the Minium sales commission?

Asked by Rosedale, Jamaica Estates, Queens, NY Thu Jul 12, 2012

I am a home owner selling my home but the real estate sales commission is so high it is killing so many deals

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Answers

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Debra (Debbie) Rose’s answer
1. there (legally and in reality) is NO "NORM" - all commissions are negotiable

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..
2 votes Thank Flag Link Mon Aug 27, 2012
I believe a better question is based on the sales commission, what the seller gets for his or her money. The seller can negotiate the commission with the agent and definitely try to get the most for his or her money. This is why it’s extremely important while negotiating to ask what the agent will be actually be offering for the commission that is being negotiated. It is very easy to hire a discount broker who will take the listing and sit on it without truly marketing the property. Sometime’s when sellers get caught up fighting over 1-2 percentage pts, they hurt themselves by not emphasizing on the marketing.

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.
2 votes Thank Flag Link Sat Feb 23, 2013
Commissions are always negotiable between you and your agent, there are no set standards; therefore choose your agent with care and not by commission alone...
2 votes Thank Flag Link Thu Jul 12, 2012
Commission is always negotiable. However, you must keep in mind that although you may find an agent willing to accept a low commission. You are still limiting the exposure of your home. You must remember that the listing agent is not the only person looking at the commission. Many buyers may never know your home exist because their agents/brokers are not willing to show a home where they are paid a low commission. I recommend that you speak with your realtor before making decisions based solely on commission. Each situation is different.
1 vote Thank Flag Link Fri Aug 31, 2012
There is not supposed to be a set commission that an agent can set. Any agent that says they have a set commission as far as North Carolina is concerned is against the rules of the state board. Do agents have a set fee? Of course they do but they won't tell you. Any fee that is set is based on what negotiations that were set at the time of your listing was signed.

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.
1 vote Thank Flag Link Sun Jul 15, 2012
Really....You should speak to your agent and come to an agreement, if deals are being killed over $10,000 give or take; think about it, is it you or the agent. My best advice split the cost with the agent but don't let a good buyer get away. Today someone maybe willing to pay close to what your asking maybe tomorrow it will take longer in the long run $10,000 compared to $500,000 really in your pocket isn't worth fighting over 2% of the deal.....($10,000 is just an example) Think about it like this how much are you really losing by turning down the offer close to what you want, maybe mortgage payments that still need to paid for, expenses on the house for those extra months of looking for another buyer, or maybe just time. I hope you work it out with your agent! Jeannette Batsikas
1 vote Thank Flag Link Thu Jul 12, 2012
It may be a good idea to reassess exactly what you are looking to gain from the sale of your home. By saying the commission is killing the deal you may mean that what you are netting from the sale is not making it right for you and your family to sell. A common situation in todays lower priced market.. If your agent has done his or her work and provided comaparable sales for your home then you know what the home is worth in todays market. Once you have established that then you can make a determination on what your costs will be at certain price levels. Most Realtors will work with you to make a sale happen and their commission doesnt have to be the end of a deal. There may be other ways to solve this if you used an experirned agent who knows the different designations and agency that can affect your sale. Every Agent is different and commission rates are usually anywhere from 4-6 percent of the sales price. Good luck
1 vote Thank Flag Link Thu Jul 12, 2012
You as an individual negotiate what commission you pay. There is no average or in your question minimum commission! Each real estate company is free to set its own fee schedule and to negotiate various rates with individual buyers and sellers. Any agreement between two different firms to set standard rates, however, is a serious violation of antitrust laws. Violations occur when competing firms agree to act together this is what the US Justice Department calls restraint of trade. There is no set fee, fees are negotiable.
1 vote Thank Flag Link Thu Jul 12, 2012
It couldn't be that you have an inflated value of the worth of your house?
It is more convenient to blame it on your Realtor.
1 vote Thank Flag Link Thu Jul 12, 2012
Our firms charges 3% total commission if there are two brokers involved and 2.5% if there is only one. We usually get our clients really good prices on their homes. Feel free to call me to discuss if you are still looking to sell.

Regards,
John
917-595-9759
0 votes Thank Flag Link Sun Mar 17, 2013
Their is no minimum or maximum. You can negotiate with your agent. Be carefull though sometimes you only get what you pay for. In real estate their are agents who can be successful with getting the job done and some not so much. It's best to talk to a few agents and ask them about their track record before making a decision. What value is it if you list with the lowest or highest commision if you don't your desired goal of selling your home?
0 votes Thank Flag Link Tue Jan 29, 2013
Hi there

It is deemed by a Broker based on the risk he wants to take, and the risks you want to take after
the sale.

Goodluck.

Perry

http://ruthandperry.com/
0 votes Thank Flag Link Wed Sep 26, 2012
We can speak about commission at our meeting. Please call me at Fajardo Delacruz 347 932-0609
0 votes Thank Flag Link Wed Sep 26, 2012
In theory, you can have zero sales commission if you try to sell the home yourself. How many deals have you rejected? No sale = no commission.
Web Reference: http://www.archershomes.com
0 votes Thank Flag Link Fri Aug 31, 2012
Real Estate commissions do not kill deals. The commission is just compensation for the work performed. You do not try to negotiate a deal with your doctor. Why should you expect to do the same for a realtor. You don't need to use the services of a realtor, but then you are exposed to a variety of problems that could happen that really might kill the deal.
0 votes Thank Flag Link Mon Aug 27, 2012
Real Estate commissions are negotiable so thee is no minimum. There are inexpensive ways that you can go to get a home sold including selling it yourself (although statistic show that homes sold by a Realtor usually net you more in the end) or go with a flat rate brokerage. If you do decide to go that route just make sure you understand what services you will be receiving or more accurately NOT receiving. As you make decision about who and how to list your house, keep in mind--you get what you pay for.
0 votes Thank Flag Link Mon Aug 27, 2012
Depending on where you are located the rates may vary and are negotiable. 5-6% is the norm and just keep in mind, you do get what you pay for. I advertise on 350 websites plus a whole ton of homes and move more homes than most agents in my area.

Goood Luck!
Frank
0 votes Thank Flag Link Mon Aug 27, 2012
Hi I am a agent with Remax Homes. Negotiations is always an option when selling your home in today's Market. We at Remax Homes are willing to negotiate so that our our clients are satisifed. Most agents will do the same job to get a house sold, however, you need to shop around to see where you will be more comfortable with your decisions. Good Luck!
0 votes Thank Flag Link Mon Aug 27, 2012
Commissions are negotiable between you and your agent. There are no set commissions.

Amy Liu
East Coast Realtors, Inc
0 votes Thank Flag Link Sun Jul 22, 2012
I offer many marketing services to sell your home. Call me and we'll customize a marketing package that is right for you and at a price that you feel comfortable with. Julia Woon-Schmidt/Associate Broker Century Homes Realty Group. (Office: 718-705-9078)
0 votes Thank Flag Link Thu Jul 12, 2012
The commission is only part of the equation and that part is negotiable.
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.

Fajardo Delacruz
Licensed Real Estate Agent
Century Homes Realty Group LC
Direct Line: 347-932-0609
0 votes Thank Flag Link Thu Jul 12, 2012
Commissions are negotiable. When you interviewed agents you should have taken into consideration how much the commission was, but also even more importantly what you were getting for the commission. Some agents spend a lot of their own money on marketing, others only use free marketing. The agent who provided you the best marketing plan at the most reasonable rate would have been a good choice. It sounds like your agent is doing a decent job if there have been so many deals killed, multiple offers should lead to a good price and happiness all around.
Tom Brady SFR, e-PRO, SRES GREEN BPOR
Licensed Real Estate Salesperson
Notary Public, Retired N.Y.P.D. Lt.
631-682-8660
Tom@BradyFamilyRealty.com
http://www.BradyFamilyRealty.com
"We treat you like family!"
Charles Rutenberg Realty, Inc.
255 Executive Drive - Suite 104
Plainview, New York 11803
0 votes Thank Flag Link Thu Jul 12, 2012
Never start out by asking how high the sales commission is but rather how much more money wlll I put in my pocket at closing as a result of your Broker's marketing efforts. You can LOSE thousands by not having your property marketed for the most exposure. The more people look
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 info@forsalebypam.com
0 votes Thank Flag Link Thu Jul 12, 2012
The typical commission for a real estate agent is 6%. However in today's value oriented society where we are all obsessed with, "Doing more with less." Commissions can range from 4% to 6%. That being said the old axiom of, "Buy cheap, pay twice." Sometimes kicks in.

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.

Nida kabbaj
Licensed Real Estate Salesperson
Exit Realty By The park
Direct: 917-681-1102
0 votes Thank Flag Link Thu Jul 12, 2012
There are no set rules or norms. It is always you need to figure if it is worth paying whatever the selling agent is asking for. Don't judge the agent by whatever he/she is asking, discuss about his/her expertise in the neighborhood, marketing strategy, numbers of listings, experience in the industry etc and then see what you are getting.

Good Luck

Anu
0 votes Thank Flag Link Thu Jul 12, 2012
Commissions are individually set by each Realtor based on their perceived value.

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.
0 votes Thank Flag Link Thu Jul 12, 2012
Hi Rosedale, As mentioned below- there are no set commissions. It is negotiated between the owner and the agent/agency. Having said that- choose an agent that will market your home to maximize the exposure for your property, to get you the highest possible price. Remember the more exposure, the more buyers to see your property. If you are listed, ask to see the advertising that is being done, where it is advetised, what websites? print ads?

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
0 votes Thank Flag Link Thu Jul 12, 2012
the "minimum" is whatever you negotiate with the agent sitting across from you, that you feel will be in your best interest.

Legally, there is no "customary, usual or typical" commission!
ALL commisions are negotiable.


ps
Yea Joe - et al - always happy to see you jump in with these sort of questions!
0 votes Thank Flag Link Thu Jul 12, 2012
Its all about how much the agent is abel to bring to the table as far as getting a great offer not the commission . A strong agent knows how to save you money at the closing table
0 votes Thank Flag Link Thu Jul 12, 2012
Rosedale,

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!
Frank
0 votes Thank Flag Link Thu Jul 12, 2012
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