0 would the lowest number, but I doubt any agent would accept it. You may have the cart before the horse. There will always be some agents willing to work for less than someone else, the question is always are they any good. Not all low fee agents are bad and not all high fee agents are good, but by focusing on the fees you will probably exclude some of the best agents who may not advertise or solicit business by advertising a low fee.
My suggestion is, and has been to find the best available agent to represent you first and focus on the fee later. If the best agent will also charge less than someone else, good for you. A good agent is worth more than their commission, but a bad agent will cost you way more than just a commission. Focus on quality and the any price will seem like a bargain.
By law, all commissions for service provided by a real estate agent are negotiable. So the answer is - how good a negotiator are you?
BUT, beware - if the agent you are talking to is willing to reduce their commission just to "obtain" your listing - - how willing do you think they will be to reduce the sale price on your home so they can "collect" their commission?
SECONDLY, Agent are in this business to make a living - the MLS tells them how much commission is being paid to a Buyer's agent upon the completion of a sale - - Why should they spend their time showing properties with lower commission when they could be showing properties that pay more?
HERE's an original thought - price your property ACCURATELY from day one and give the Buyer's agent "no" reasons not to bring their buyer!!!
Prudential Fox & Roach REALTORS
Where I see a problem is where commissions are cut to the just barely acceptable. Then they are really not worth doing the work or investing in ... but they may be if you can find a buyer quickly, so, hope springing eternal, someone takes on the obligation, only to find it will be a harder job than anticipated. So, do you cut your losses and effectively stop work on it or do you remain "professional" and continue to work even though you know you are losing?
The lowest commission rate will be the lowest you can work out with each agent you interview. There is no set rate, although there might be one that is common for the area. If it's only price you are concerned about, there might be some discount brokers that will do the work for very low prices but you might sacrifice service with them.
If you don't have an agent yet, your best bet is to directly interview and compare the value of services offered by a few realtors who specialize in what you need.
Good luck with the home sale!
I noticed this conversation has slowed down over the past year, but as it's very relevant to our service, we wanted to chime in for anyone else that comes across this thread.
Commission is always negotiable, and the Department of Justice even condones it as good competitive behavior among agents.
So 6% commission is almost always the normal "realty fee" but that can really vary depending on the location and price of the home you're wanting to sell. Many agents are willing to be flexible on commission rates, but it's not something they like to advertise. And most clients are not very capable or comfortable negotiating rates.
At UpNest (http://www.upnest.com), we created an online marketplace where home sellers can confidentially submit their homes, and multiple top local agents will compete to obtain your listing. Some agents lower their commission rates to stand out, and every agent that submits a proposal is an experienced agent, so it's not the same as working with a low grade discount brokerage.
However, the point is not to negotiate a percentage point or two off the commission. In all hindsight, the difference in commission will be minimal compared to the service you can get from an agent that truly knows and cares about the work they do. You must think big picture when making huge decisions like selling your home, and in the end the commission differential will seem like peanuts.
You typically get what you pay for skill wise and can expect a range between 4-6%.
Now, the reality of your question is there for you to address.
What is your purpose?
To have a home for sale?
To sell your home?
That is what is so exceptional about real estate. The home buyer and home seller has an extrodinary array of options. EVERYTHING is negotiable. With each option comes a bit more complexity and a higher requirement the home buyer or seller to understand the reality of acheiving their real goal.
The illusion of saving money is tempting...and will prove to be excessively expensive.
If you choose the "home for sale' option and are ready to sign up an agent who will do it FREE, say so, provide your telephone and see what happens.
If you choose the 'sold' option, you will need to rely on the seven questions you didn't know you have.
You have many options and I wish...
Best of success to you,
Annette Lawrence, Broker/Assocaite
Remax Realtec Group
Palm Harbor, FL
First, consider the agents that will be bringing prospective buyers to your home...Ask yourself - why should they bring buyers to your property? They work for commission and just as you do, they want the highest possible return on their efforts..
Second, letâ€™s consider what your commission pays for - marketing, advertising, servicing and reputation. That costs money!
Third, if an agent will negotiate away their "own" income with you - how quick do you think they will be to negotiate away your sale price?
The highest return on your investment is captured by spending little time on the market as possible; thereby reducing the amount of money you spend on mortgage, utilities, etc. while waiting for that "offer".
My advice - don't focus on the commission dollar - focus on what you get for your dollar and choose an experience, pro-active agent who will price your property right from day 1 and provide the type of marketing, advertising and service that informs you and exposes your property EVERY day to the buying market!
Make sure you are giving the Buyer's Agents a reason to visit your home over your competitions - that is how you SELL your property in the shortest time possible and obtain the highest return for your investment.
I've seen homeowners who negotiate a low commission rate and then get substandard service and have a home that sits unsold for months.
With my neighbor, his 2nd home sat unsold for years. He bragged about how he didn't have to pay a lot of commission, but lost thousands by having to pay property taxes that the home's rental income couldn't cover.
With normal commission rates, an agent will work harder with open houses, marketing, etc. An agent would rather spend precious weekend hours working on a home that pays more commission at closing. It's human nature and agents have bills to pay too.