Home Selling in 08753>Question Details

Ray, Both Buyer and Seller in Toms River, NJ

What is the standard comission for selling a house?

Asked by Ray, Toms River, NJ Tue Apr 15, 2008

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Hi Ray,

There is not a standard commission, just as there is not a standard price for car, nor a standard fee for an accountant, or a standard price tag for a watch. You can buy a pre-owned car without a warranty for a few thousand, or a new car with bells and whistles for close to six figures. One accountant may charge $100 for a tax return, and another may charge many thousands. Do you want a watch from the Walgreens or Cartier?

SELLER FEES: So, what are the choices when it comes to real estate transactions? A seller can spend a few hundred dollars for a flat fee listing and offer a buyer agent commission only, or a seller can enter into any number of hybrid plans that combine upfront payments with bonus commissions at closing, or commission only plans that can hit double digits. While the double digit plans are uncommon, there are circumstances where that may be the best choice for a seller.

While there are no fixed or standard industry rates, individual businesses are free to set their set fee schedules. Some individual Realtors will provide you a proposal that reflects their set fees, others will negotiate with you. At our company, we offer sellers a choice of marketing and representation plans so that a seller can choose that which works best for him/her. When we provide single property dedicated websites, floor plans, videos, premium web placements, and pricey print ads, the fee structure is different that when we don’t. Where we are able to contain costs, we pass on the savings to our seller clients.

If you are a seller considering hiring a Realtor………When you hire a Realtor, you are contracting for representation, advice, and marketing. Gain a thorough understanding of what services and marketing you will be receiving for the fees charged. Make your decisions predicated upon the plan which you believe will present you the best net.

In zip code 08753, there are currently over 500 single family properties for sale. That figure does not include townhouses, condos, land, or multi-family homes. The market is competitive. Some sellers opt for aggressive marketing plans to gain an edge on the competition. Sales of SF homes in Toms River are down 29% YTD. We have been averaging 14-16 months of inventory for the last few months, swinging the market in favor of the buyer. (Source MOMLS 4-16-2008)

BUYER FEES: A buyer can contract for representation and hire a buyer agent who can look to the MLS for listed properties, as well as contact active property sellers who are unrepresented, or source potential properties which are not actively for sale. A buyer and buyer agent can enter into a buyer agency contract for representation which defines the amount of compensation an agent will receive. In such agreement, any fees paid by a seller can applied to the buyer agent compensation.

If you have additional questions about the real estate market in Toms River, or representation options, please feel free to repost on this thread, or contact me directly.

Deborah Madey - Broker
Peninsula Realty Group - New Jersey
Deborah@PeninsulaFirst.com
732 530-6350
7 votes Thank Flag Link Tue Apr 15, 2008
Deborah Madey, Real Estate Pro in Brick, NJ
MVP'08
Contact
Chris, it's pointless. There are no numbers to back up these statements. As you say, they are straight out of the ether. Some folks think if they repeat a lie often enough it becomes the truth. Like the "fact" that there are "quality agents" who are more than happy to do the job for 3 or 4%. "Quality agents" are turning down listings left and right.
6 votes Thank Flag Link Sat Apr 26, 2008
Ray,

There isn't any "standard" commission ... never has been because it's negotiable .. besides, it's been a long and cold winter for most agents out there, including the ones in Florida ...

Most agents haven't had a good closing in 4 or 5 months .. plus, there's a 30% failure rate due to shaky credit, income verification (or lack of) and of course, a bad debt ratio popping up at the very last minute - whatever.

Right now you're seeing agents doing 3 and 4% , and you're also seeing agents doing flat fee's based on time frames, which is fair ... for those that need 6 or 7%, just move on and interview the next 3 ...

Keep in mind .. the huge amount of agents competing for a job right now, not only is it a buyers market, it's a buyers market all around .. this will motivate all of the top quality agents to work harder to get your business ..

Good luck and happy hunting.


: ^)
6 votes Thank Flag Link Tue Apr 15, 2008
Chris,


This isn't about you .. it's about consumers getting their best deal in this volatile
market ... denial is not a river in Egypt my friend.

If you can get 28% commission on your next 20 homes sales, then have at it .. buy yourself a pair of Roberto Cavalli jeans and get a pair of 24ct wingtips for your High School reunion, and let the good times roll .. whatever floats your boat..l.o.l..

But it's common conversation in most parts of Michigan ..

There is quite a few homes in the Grosse Pointe area that are dealing with quality realtors at 2 and 4%, friends there used them last fall to sell their home on a flat fee ... do you think Boyne paid more than 2% on that last deal..?

You're seeing it in Lansing, and thats close enough for horseshoes and hand grenades in your neck of the woods ....

It's just not your area .. it's business 101 anywhere and everywhere ..

A savvy consumer isn't going to spend an extra $10,000 to sell his home when the full-service realtor is used 5 doors down, instead of using the one next door and $10,000 less - discount doesn't mean bad, it means less ... .. you're seeing it in Virginia, Vegas, Fla, the Carolinas, NY, Ohio, California .. I guess the the question is, where isn't it .?

Do you think your boss is going to keep paying the rent and all of that overhead with you saying 6% 6% 6% with fewer and fewer clients. .. especially when your competitor is doing 4% or less - "and" doing 3 times the volume..? ... thats what put half of the car dealers out of business between 1999 and 2004 ...
http://www.businessweek.com/magazine/content/06_48/b4011049.htm


Does this sound familiar.?

"Death Of The Car Salesman
Savvy customers, lower margins, fewer sales, and too many dealers: Car salespeople never had it so bad.."

Sincerely, I'm not trying to be a smart ... but this could very possibly read:

"Death Of The Realtor
Savvy customers, lower margins, fewer sales, and too many brokers: agent salespeople never had it so bad .."

Now, whether agents cut 30% of their deals or 70% of their deals, it matters not ... the point is, they'll cut more and more just to increase cash flow with more and more volume in clients (if they're smart) .. what would an owner rather have, 5 agents bringing in $8,000 each or 2 agents bringing in $12,000 each (and yes, you have 3 minutes to answer) :^) ..

The tip of the iceberg is already here .. you just have to decide whether to run aground or use the current in your favor...


: ^)
5 votes Thank Flag Link Wed Apr 16, 2008
This thread has degenerated into a little "pi**ing match. What say we try to stay on topic, and try to keep the ad hominem attacks to a minimum, shall we?

It cheapens us all when we trade insults, no matter how well couched they are.
5 votes Thank Flag Link Wed Apr 16, 2008
Alan May, Real Estate Pro in Evanston, IL
MVP'08
Contact
There is no standard commission. Agents and agencies charge what they feel they're worth (or what the market will bear). Agents and agencies are NOT allowed to collude and determine what IS and IS NOT a standard or normal commission, that would be against anti-trust laws.

Commissions are negotiable. That doesn't mean that the agent who quotes you 6% must negotiate a lower rate with you, it merely means that agents and agencies are empowered to charge their own rates, according to the services they offer, and the value they feel their services are worth.

There are many models to choose from... all the way from list-you-on-the-MLS-for-free services, to flat-fee services, discount agents/agencies, agents/agencies that reimburse a portion of their commission to you, and full service agents/agencies.

An abundance of choice.
4 votes Thank Flag Link Tue Apr 15, 2008
Alan May, Real Estate Pro in Evanston, IL
MVP'08
Contact
JR, I understand, of course, exactly what you are saying. I was so baffled by what I thought Fred wrote, that I had to ask for clarification. Perhaps I misundertood? But, you seemed to read it the same way I thought I did. We'll see if Fred can shine a bit more light on it.

Jr, You have mentioned turning down listings when a seller wants to price too high. A Realtor turns down listings when the property is priced too high, because the expense to both the company and agent is simply too high to carry. As a broker, we cover all marketing and advertising expenses for our listings. Once in a while, an agent may determine to augment the marketing with additional ads paid by the agent. But, most of the time, all of the ad and marketing come from us,the broker. I am not dismissing the time factor for the agent as an adjustment. By the time the listing is a few days into the system, both agent and company have made monetary and time investments. For both company, and agent, some listings are simply not worth taking if the investment is unlikely to yield a return.. All listings come with up front expense and commitment. We accept that as part of the risk/reward factor. As a company, we do have a hybrid marketing plan for sellers that involves up front payment on their part. They earn savings from the whole fee due, and we have a small up front professional fee paid to us.
3 votes Thank Flag Link Thu Apr 17, 2008
Deborah Madey, Real Estate Pro in Brick, NJ
MVP'08
Contact
Tman,

Don't you know that “Real Estate is Local”™ and that “It’s Different Here”™?

-John
3 votes Thank Flag Link Wed Apr 16, 2008
Most agents haven't had a good closing in 4 or 5 months .. plus, there's a 30% failure rate due to shaky credit, income verification (or lack of) and of course, a bad debt ratio popping up at the very last minute - whatever.

Right now you're seeing agents doing 3 and 4% , and you're also seeing agents doing flat fee's based on time frames, which is fair ... for those that need 6 or 7%, just move on and interview the next 3 ...
~~~~~~~~~~~~~~~~
I've closed on 2.5 million dollars worth of real estate this year. These may not be world record numbers, but I'm satisfied. All at least 5% commission on each deal. You may be speaking of conditions in your small corner of the universe.

That said, I have advised some sellers not to sell unless they absolutely have to, and I have advised some buyers not to buy. I see prices coming down much more. I think that is a good thing. There are people ho HAVE TO move sometimes for various reasons: death, divorce, illness, job transfer. As I pretend to look in my crystal ball, I also see all the realtor bashers, 80% haircut predictors, and general gloaters over other's misfortune rushing in at some point and buying properties and then turning around and flipping them as prices go back up and creating another cycle. Why else all these questions on Trulia asking where can I buy a cheap forclosure.
3 votes Thank Flag Link Wed Apr 16, 2008
Enough already. people like Tman and Fred are going to exist in every aspect of sales. What Tman refuses to address is just like the Twins will never be the Mets or the Yankees, smaller markets are going to always be smaller markets. (except when Tiger drives throught the town car to hang out with Gary Player and Tman) Tman does not understand different markets only what he sees in his backyard.

The standard commission for selling a home is 5.1% - that is the national average. If you are in Enid, Oklahoma, it could be possible that the rates could be higher or lower, in Catskill NY the average is 7%.. that is 4 hours north of NYC and houses do not sell too often... 7%. So, I guess we know that houses in wherever South Carolina where Tman, Tiger Woods (ha ha) and Gary player live.. Your commission will be in the 2.5% - 3% range.. so I advise you to move to a better area if you want to sell homes.

Done. Over.
2 votes Thank Flag Link Tue Apr 29, 2008
The question isn't whether or not this rate issue exists and needs to be proven by me ... the issue is for you to prove it "doesn't" exist ...

But thank you, you've just proved it does ... or you wouldn't have spent the last 4 months and all that spent energy from the same 3 agents that always want to wave the flag and pound the drum for the NAR. ...

Basically you're just trying to reaffirm your position with "your" clients -- afraid you'll get caught..?

See, it matters not for me whether Deborah charges 8% or 18% .. it makes little or no difference for me if Chris charges 60% - and it really makes no difference that the realtor down the street will do 4.5%... it's a buyers market, and agents being part of this discounted market .. some agents will gain from it and others won't.

But it is important that consumers know and understand the market is changing .. and will change a lot more in the next 25 months, discounted rates are already here by a lot of full service realtors ... it's the buyers and sellers job to shop - shop some more and find the right one - and not pay too much ...

Do you think the car dealer is going to tell his customer that the buyer in the next office just paid $900 less for the same car.? - I don't think so .l.o.l...

The thinking is simple and basic, they would rather make $8,400 on this $240,000 home sale than zero .. they would rather see a $20,000 flat fee on that $800,000 home sale than watching the stock report on CNN for the 63rd time ...

So, whether you except it now .. 20 months from now, or never - is really non important .. the savvy consumers will interview you and your price .. some will gain, some won't.

You're in the the same scenario that car dealers were in 1998/2004 ... they laughed at the consumers with their internet information, then hiding this cost and that cost ...

Then one by one, their market penetration fell from 97%, then 70%, then a few short years later under 50% ... now they're working for someone else .. or not at all.

Chris: "these poor people" .... please, stop the drama class.

You work in one of the most distressed area's of the country .. you make a commission off of nice hard working folks that can barely make their mortgage payment or their hospital needs -- and you say "this poor people.."...? ..l.o.l...

This is the very reason why consumer advocates like myself take folks like you to task ...


-
2 votes Thank Flag Link Tue Apr 29, 2008
Hi Chris,
I understand your concerns. When someone from outside the industry reads inaccurate data, they don't know it is faulty.

Hi Ray,
In our MLS for Monmouth/Ocean NJ, as in most MLSs, the buyer agent commission (BAC) is printed, but not the seller agent commission. Any member Realtor can advise you what a competitive rate for BAC is for this area, and will advise you for your property and personal situation. What I cannot see in the MLS is the total commission. There are over 1000 listings in Toms River right now, and the buyer agent commission alone as reflected in MLS would easily dispel any faulty data represented earlier in this thread. For the buyer agents to receive the commission offerings represented would mean we have a lot of seller agents working for free or even paying you. Since it is preposterous to think that 1000 seller agents are working for free, the data does not support faulty claims made earlier in this thread. Additionally, I have pulled YTD stats for Toms River, and that, again, discredits claims made on this thread.

If I can assist you with accurate data and advice based upon local market conditions, please feel free to contact me. I can support my assertions.

Regards,
Deborah Madey - Real Estate Broker
Peninsula Realty Group - New Jersey
732 530-6350
2 votes Thank Flag Link Sat Apr 26, 2008
Deborah Madey, Real Estate Pro in Brick, NJ
MVP'08
Contact
Ray,

**..I'm seeing commissions in the 6, 7 and 8% area..**


If you see those numbers you better be running the other way ...

Most realtors haven't see a paycheck in months and quality agents will be more than happy to do a quality job for 3/4% ....

7/8% .l.o.l.. I gotta say, Dianne sure has a good sense of humor....


: ^))
2 votes Thank Flag Link Fri Apr 25, 2008
Fred, I understand that you wish that would happen. For whatever reason. Maybe you think we get paid too much and our job is too easy. What is your occupation? Do you own a home?
2 votes Thank Flag Link Thu Apr 24, 2008
For those of you who do not know Fred, I sold his Mom a 1 bedroom condo and he did not want me to... He wanted her to buy a two bedroom so he could continue to live with her and she said "no, you are 47 and need to get out on your own" She got a great deal.
2 votes Thank Flag Link Thu Apr 17, 2008
It would be nice to see brokerage industry evolve into a format that requires brokerages to put up cash (or services that have tangible value - not time) for residential work and if the project fails, everyone is out the time and a little bit of skin in the game.
~~~~~~~~~~~~~~~~~~~~~~~~
Are you saying time has no value? If I had a listing expire, all the time spent is unpaid. You say brokers should put something tangible up front. We do. We pay for advertising, food for open houses, prizes for open houses, gas to drive folks around..not to mention our fees.
2 votes Thank Flag Link Thu Apr 17, 2008
Dear Ray
There is no standard commision. Focus on the performance of your agent. You want to sell your house for the highest price, in the shortest amount of time. That is your goal. Paying a higher or lower commission isn't what matters, it is the final selling price that puts money in your pocket.
Good Luck.

Sharon Kozinn
Web Reference: http://www.sharonkozinn.com
2 votes Thank Flag Link Wed Apr 16, 2008
Tman -

I realize that you are in a small market and I do not expect you to understand what is happening in different areas of the country. Live it up, have Gary and Tiger come by and have a coke with you!
If you make to Hilton Head, I'll see you on the golf course.
2 votes Thank Flag Link Wed Apr 16, 2008
Why else all these questions on Trulia asking where can I buy a cheap forclosure(?)


Because some of us sat in a rental for the last 8 years waiting for a time when it made sense to buy a house.

A house to live in.

Many of us predicting a huge haircut are excited about prices dropping not you losing money. I could care less if you sold $2.5M in the last year. Pay taxes to bailout all the people you sold them to with. All I care about is putting a long term roof over my familys head for a reasonable price. Many doomers believe flipping is what caused the bubble, we aren't the ones trying flip them as prices go back up. We don't like those people, realtors do. They pay realtors comissions. Many try to share an opinion that counters the NAR because many buyers don't have a voice (except of course your lucky customers) if the buyers agent is in a conflict of interest. NAR is saying buy, buy, buy. We are just disagreeing.
2 votes Thank Flag Link Wed Apr 16, 2008
Hi Ray,

Just note, Tman is located in "Sunset, South Carolina" These are places that are feeling the crunch of the bad market. Ohio, Florida, North Carolina, South Carolina, Virginia...

Not 40 Miles outside of NYC. The market has slowed, but not to the extent that some other parts of the country. and also, a good home priced correctly, will sell. period.

Tman's thoughts (although interesting ) has nothing to do with our area, if it did Foxtons would still be around!
2 votes Thank Flag Link Tue Apr 15, 2008
Yikes! thread is only 2 years old??

I eventually listed a home for sale that the sellers were on the fence about and was vacant for 12 years before the owners decide to sell.

Celia, very good call, never assume anything.......
1 vote Thank Flag Link Sat Sep 25, 2010
Question is over 2 years old. Are you really trying to sell your services to someone who posted a question over 2 years ago???
1 vote Thank Flag Link Sat Sep 25, 2010
This is a good question and I have alot of sellers that don't know why commissions range in percentage. As a full time agent for a full service company(Crossroads Realty)we provide all of our clients with superior services. Commission is not only an important factor regarding compensation for the agents but as well for the clients. Our clients are never charged fees to market their homes nor do we limit the amout of time/money in order to get your home sold for maximum value. I spend countless hours on creating new innovative strategies to market homes and it pays off. I would be happy to answer any questions you may have. Thank you, Celia Szieber (732)597-0060
1 vote Thank Flag Link Sat Sep 25, 2010
I do not know about your state, though I do know that in Washington State there is so "standard" Commission. Commissions are negotiable and sometimes you get what you pay for. There is value in hiring the right REALTOR®. The thing that you do have to remember, is that these are professionals and they have strong marketing experience, negotiating skills and the experience to manage your transaction to closing. We do this every day! The other thing that you have to remember, like anyone else REALTORS® work for money. If you are selling your home, you want to offer a good SOC ( Selling Office Commission) and you need to pay a good LOC ( Listing Office Commission ) as well. The listing agent pays for all the advertising to market and sell your property. The Selling agent brings the Buyer and by paying a good Selling Office Commission (SOC) that will make sure to have your home shown and sold. After all this is our Profession, we work for money, including the clients we work for. Remember almost all REALTORS® and Real Estate Agents are self-employed. When you see the dollar amount of a commission, that is before E&O insurance, B&O insurance, Social Security, Taxes, Office fees and Marketing expenses. After all that is paid, we get whatever is left over. Sometimes that is not much..... There is value is hiring a REALTOR® and in paying a good commissions. This is one of the largest investments that you will make and you want to make sure that it is done right.
1 vote Thank Flag Link Thu May 1, 2008
Well, I can't speak for anyone else but Deborah makes a great point. Corpus Christi currently has 3,213 homes listed for sale and the MLS is showing at least an ave. of 25 new listing a day. To be quite honest, if anything the commissions seemed to have increased over the past few years. I remember 2 to 2.5% buyer's agent commissions being across the board only a few years ago. I am still seeing 2.5% commissions but alot more of 3% to 3.5% and some (few) 4% offer to buyers agents. I would say the ave. comm. here is from 5% but mostly 6 and some 7%
1 vote Thank Flag Link Tue Apr 29, 2008
There is no standard for all Realtors. Each company sets their own commission rate.
1 vote Thank Flag Link Tue Apr 29, 2008
Hello: There is no "standard" brokers fee. It is negotiable. The reality is that to sell a home in the current market it takes much effort/marketing than in previous years. Brokers fees/commissions are anywhere from 5 to 8%. To increase a home's exposure Realtors are doing much more of the following: print ads, "Just Listed" mailings, conducting open houses, Broker's luncheons, and increased internet exposure from blogs to featured websites. And this is just a sampling of what can be done. These items are paid for by the agent out of his/her marketing dollars in an attempt to get the home sold. As mentioned previously, there is no commission/ brokers fee paid if the home is not sold; therefore the agent is out-of-pocket what could be a large amount of money.
1 vote Thank Flag Link Sat Apr 26, 2008
There is NO standard commission for selling a house. If anyone tells you that there is, then that is price fixing and TOTALLY illegal! However, the common commission to put out to the buyers agency is 2.5%. Then there is the listing side for the listing agency. That fee can range as well. Remember that all commissions are negotiable. If you have any other questions, feel free to contact me, Lynn Dachisen, at 908 256-0508 or email me at Lynn@MyNJDreamHome.com. Hope this helps
1 vote Thank Flag Link Fri Apr 25, 2008
Ray, there really is no "standard" commission - it's a "negotiable" commission; however, I can tell you that in this market, I'm seeing commissions in the 6, 7 and 8% area. Why? Because it's so much more difficult to market a house these days and an agent has to spend a lot more of his/her marketing dollars to get the home sold (IF it gets sold). As you know, there is NO COMMISSION paid if the home is not sold; therefore the agent is out-of-pocket what could be a large amount of money.

Hope this gives you some understanding .
Web Reference: http://www.askfordianne.com
1 vote Thank Flag Link Fri Apr 25, 2008
To help answer your question Ray, there is no set “standard” … the commission rate is negotiable as is the length of your contractual agreement with that agent.

With that said, do not let commission be the only deciding factor when selecting a realtor to represent your best interests. Interview several agents and have a game plan in place to interview each individual agent to fully maximize your time with them. Home-buying and selling is not only a big financial commitment, but also an emotional one. It’s critical that the agent you choose is both “skilled” and a “good fit” for your personality.




John Agnello
Realtor®
Long & Foster, Real Estate Inc.
(609) 320-6700 –Cell
(856) 856-2338 –Office
1 vote Thank Flag Link Wed Apr 23, 2008
JR - yes, you are right and the fat between the bid and the ask will be cut, make no bones about it. resi brokers are staring at the same situation that full service stock brokers faced ten years ago when they killed the minimum tick rule. MLS is just the beginning - as an example Trulia is an interface equally compatible with moving real estate as well. craigslist is a perfect example of what happens when clunky markets like residential leasing is disintermediated. the days of brokers getting 5% of the equity for showing up are over. something you may see are some of the bigger brokerages going salary + bonus and dropping the commission-only structure. there are major quality of service issues in the industry, not to mention a complete failure to educate and monitor what most brokers say and do. this website is a shining example of folks who treat major financial assets as if it were a tupperware party. it's egregious. don't get me wrong, there is a market for quality service and you seem to have those qualities but there are others who just spew - well - crap.
1 vote Thank Flag Link Wed Apr 23, 2008
There is No Set Standard. In todays Real Estate Market its all about negotiating and find a competent realtor to work hard for you as a buyers agent and a seller agent.
1 vote Thank Flag Link Wed Apr 23, 2008
You say that the MLS does most of the heavy lifting? If that were the case, discount or fee only brokers' listings would fly off the shelves at the same rate as agent marketed homes. The fact is the MLS is only one small part of an agent's marketing plan. The days of planting a sign in the yard and slapping it on the MLS and sitting with your feet up waiting for the phone to ring are gone.
1 vote Thank Flag Link Wed Apr 23, 2008
JR - all of that has a cash value but was referring to the issue of commissions being out of market relative to other industries. no one is saying time has no value but it's just not worth 4% to 6% of the equity value in a home. the MLS system does most of the heavy lifting. feds are going to tear the mortgage industry apart, but a lot of the focus will be on the mortgage side but i do think the NAR is going to get a good talking to. have you seen the latest economic "analysis" from the NAR? it's borderline pathetic.
1 vote Thank Flag Link Wed Apr 23, 2008
Hey Ray,
36 answers, and I don't think one person answered your question.

How about this: 5.1%

You said the word "standard", but I think you meant "average."

As put out by NAR, the average total is 5.1%

What I wish they would break down is the buy side and the sell side.

Also remember that is the "average."

If you can get an above average agent for a below average rate, then good for you.

One of my slogans is "I used to discount, but then I got good." My clients net more, and that is what matters.
Web Reference: http://tinyurl.com/3l8blg
1 vote Thank Flag Link Wed Apr 23, 2008
Fred,
I didn't understand what you wrote. Are you saying that you think a seller should pay a broker $$ up front? Or, are you saying that a broker should pay a seller $$ up front? Please clarify.
Tx
Deborah Madey - Broker
Peninsula Realty Group - New Jersey
1 vote Thank Flag Link Thu Apr 17, 2008
Deborah Madey, Real Estate Pro in Brick, NJ
MVP'08
Contact
He didn't ask if commissions are "set". The question is what are standard commissions and that depends on the area. Surely, Ray can help the intrigued audience by narrowing his geography and the audience can provide a range or what is typically market for their respective region. As a sidebar, I will offer the following: I always think that the best arrangement is when the upside also has some downside. It would be nice to see brokerage industry evolve into a format that requires brokerages to put up cash (or services that have tangible value - not time) for residential work and if the project fails, everyone is out the time and a little bit of skin in the game. merchant brokerage? the new face of real estate is going to emphasis downside risk in the system and most likely lenders just like other service providers will have to step up somehow - that will involve a haircut on fees and justifying the added layer of cost. buyers reps will standout because that is a true relationship-based service. FYI - John Sacktig will sell you anything, anywhere, at any price you are willing to transact, through rain or shine, in any zip code, for any fee.
1 vote Thank Flag Link Thu Apr 17, 2008
Companies and agents are not allowed to set "standard" commissions, as this would be a violation of the Sherman Anti-trust legislation. However, you should talk to your agent about the service you can expect for the commission paid. It is a fair question, and if you are dealing with a full-service Realtor at a top selling company, you can know you are in good hands, and the commission paid will probably well be worth it. Remember, your agent doesn't get paid until you do.
1 vote Thank Flag Link Wed Apr 16, 2008
Funny stuff, what a complex question this has turned into... confused yet Ray. When you have someone using the discounted Broker card remember you a hiring this person to negotiate your interest at the end of the day hopefully. Focus on the "Correct" listing price avoiding more costly errors in holding cost. If you are a seller in this buyer's market you are probably not in a position to make an mistake when selecting a realtor.
1 vote Thank Flag Link Wed Apr 16, 2008
Every Home is Different - There is no standard Commission for selling a home - All companies are not equal in what they can do for you in marketing your home !
1 vote Thank Flag Link Wed Apr 16, 2008
Tman, Sure we all know that the Carolinas are good for golf.. I actually own on Hilton Head Island.
Tiger is building a course, (make sure you stand around and wave to him as he zooms by) which is great... Why? because it is cheap in comparison to up north. The weather is better yes, but other then the golf?

Your market is much lower then here, that is the point. My brother bought in Georgia ( north of Atlanta, great area) 4 bedroom colonial that was 2 years old.. on 1 acre of land... $199,000 that was during the height of the market 2 years ago. Same house here, 30 miles out of NY is 800k - I know it is hard for some like you to comprehend my note, try real hard.

It is a different market and if you have agents taking 3% in your area, you have obviously been hit harder then this area.

I do not really expect you to understand, from your response you seem like a idiot.
1 vote Thank Flag Link Tue Apr 15, 2008
I agree wholeheartedly with my fellow realtors. Keep in mind the high amount of inventory competing with your house, and what would motivate an agent to select it for their clients above others -- commission! A large number of sellers are offering 5-6% as a base, and adding on bonuses or other incentives to get their houses sold. Don't be "penny wise, pound foolish"!!!
1 vote Thank Flag Link Tue Apr 15, 2008
Hi Ray,
All Commissions are negotiable in NJ however you want to make sure realtor is going to advertise your home properly and give the buyers agent a fair split so they will bring buyers to see your home. Please feel free to contact me if you have additional questions. In this market agents are working very hard to sell the homes therefore I would consider 5%-6% fair.
1 vote Thank Flag Link Tue Apr 15, 2008
By law there is no FIXED rate. You can negotiate the commissions with each office/agent. Each office/agent does different things, so you can pay for what you get. Different real estate demands different commissions, residential vs commercial vs rentals vs open land vs single building lot vs builder or single home seller. After 40 years of doing real estate i have seen ALL different models. Some models just don't work, but every few years they are tried again. IF i can help you call, or email me. marc j williams 732-778-9933 or email marc@marcjwilliams. thanks
1 vote Thank Flag Link Tue Apr 15, 2008
Not trying to be redundant, 6% is the starting point. Depending upon the agent and company 6% has become the norm as it is taking a little longer to sell some homes and the cost of marketing your home is great. Of course all commisisons are negotiable and 5% us usually the settle point.

There are some that will walk in the door and will offer you 4% yes, but the key in interviewing a Realtor is to see what they are doing for you. Make sure the agent can produce that ad copy, magazines advsrtised in, direct mailing and website(s) information. this information should be brought to the interview and readily available. What does this have to do with commission? $ spent in marketing. Find out how often these ads run.

Take all into consideration when selecting a Realtor and the company behind the realtor.

Good luck with your home sale!
1 vote Thank Flag Link Tue Apr 15, 2008
Ray,

This is not a complicated question like other agents make it out to be. You asked a simple question and you want a simple answer, right?

Commissions are determined when the Listing Agent gets the listing. Depending on the price of the home, the usual starting point for commission is 6%. That gets split between the Sellers Agent and the Buyers Agent (3% each). However, sometimes at the time of listing the home, the seller will negotiate the commission with the agent.

All listings are different but usually stay around the 5-6% range.

Sal Ventre
Crossroads Realty
732-684-6398
SVentre@crossroadsrealtynj.com
0 votes Thank Flag Link Fri Nov 23, 2012
Hi Ray

commissions vary depending on the worth of the home e-mail me or phone fpeters@weichert.com 732-974=1000 ext 111
0 votes Thank Flag Link Fri Oct 26, 2012
As everyone else mentioned, there is no standard. Under web references I linked up a guide for interviewing real estate agents. Even though it is geared toward Las Vegas area sellers, you may get some good ideas.

Interview, get net sheets, get marketing plans and hire the one best suited for the job!
0 votes Thank Flag Link Fri Feb 18, 2011
In NJ, all commisions are negotiable, therefore there is no standard.
0 votes Thank Flag Link Fri Feb 18, 2011
Blah Blah blah.
Al commissions are negotiable. There is nothing that states that a company can set their commissions. It is up to the seller to decide if the value of their services or any agents services is of good value and that they will sell their home for the highest price for the right buyer.
Legally, every home must be shown no matter what commission is offered to the buyer's agent.
The real question to answer is the commission worth the value of the services.
0 votes Thank Flag Link Thu Aug 26, 2010
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