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dcscps, Home Buyer in South Jordan, UT

What is the percentage customarily charged to sell a house or condo?

Asked by dcscps, South Jordan, UT Wed Apr 17, 2013

My mother is selling a condo in another state, and the contract is stating "If a sale: 6.00 % of the gross selling price of the property. Seller acknowledges that Broker will offer 2.00% to the cooperating broker who is the procuring cause of the sale." Does that mean that the procuring broker will receive an additional 2%, or will the 2% come from the 6%? Are these customary rates?

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These are customary rates. Typically the seller will be charged 6% total, 3% to the buyer agent, and 3% to the listing agent. Sometimes the listing agent will discount this cost if you are going to purchase another home after the sale of your current home. Feel free to call me if you have any further questions. 801-604-7462.
0 votes Thank Flag Link Wed Oct 9, 2013
Thanks for your question,
in the above example, the 6% gross is the total that your mother will pay to the listing broker, and the listing broker will then pay out of that 6% a total of 2% to the procuring cause of the sale ( the buyers broker)

Please note that all commissions are NEGOTIABLE between listing broker and the seller (client) there is no fixed % .
Your next question customary rates. again it is negotiable, you may request the broker give more to a procuring cause of sale (buyers agent) to bring in a quick sale, that is if your house and your compettion offers exactly the same details/price etc but you are only offering the buyers broker 2% and the competition is offering the procurring cause of sale broker 3%, then you may lose the sale!
Hope that helps

Ruth Boxall
Realtor
Utah Realty Advisors
utahrealtorruth@gmail.com
0 votes Thank Flag Link Wed Apr 17, 2013
Yes, I'd say it sounds like the total commission to be paid is 6% but that the listing agent is only offering 2% to the buyer's agent. They can offer to the buyer's agent whatever they like but it is customarily 3%/3%, not 4%/2%. So, since the commission which is being offered to a buyer's agent is being lowered than what is customary they may charge their client (buyer) the difference. It may cause a buyer to think twice before purchasing that property over another one.

Just something to think about. I hope this helps.

Becky Nay, Realtor
Keller Williams Realty
Web Reference: http://MyHomeInUtah.com
0 votes Thank Flag Link Wed Apr 17, 2013
thank you.
Flag Wed Apr 17, 2013
Your mother is obligated to pay only 6% total in commission in this situation. The Listing agent can offer as much or as little of that 6% to the buyers agent. In this case, it sounds like the listing agent will keep 4% and the buyers agent, if one exists, will take 2%.

Yes, 6% is the "industry standard", but I have worked for more than 6%, and for less than 6%. It depends on the situation. If you have any other questions, feel free to give me a call. I'd be more than happy to help you out.

Thanks,
Dustin Brohm, REALTOR
Equity Real Estate
Salt Lake City, UT
0 votes Thank Flag Link Wed Apr 17, 2013
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