I've seen the commission rates from 5-7 %.
The answers below explain quite accurately the split of that commission and I would add that ( as with everything else in life) you get what you pay for.
If someone is luring you with a lower commission rate what are you giving up for that rate Advertising!? Co op commission ( commission givien to agents that bring a buyer) ? Marketing of your property?
Hopefully you can find a happy medium with commission rates and quailty of work.
This is actually a very common question, though unfortunately doesn't have a simple answer such as 1+2=3.
There are various types of commissions and various reasons someone would be willing to pay a higher commission. On the low end there are FSBO(For Sale By Owner) websites that will charge you a flat fee in exchange for listing a property in the MLS, and many will require you to offer what is called a Co-Op Commission, which is the fee paid to the agent that brings the buyer to you.
Commissions can be whatever someone is willing to work for. An agent has overhead costs to consider when deciding whether to work for the commission a seller is offering. There are costs to maintain licenses, continuing education, marketing, and overall the cost of making a living. Just as you trust a doctor with medicine, an attorney with litigation issues, you trust a Realtor with guiding you through the process and helping you get top dollar for your home.
When deciding to list a home for sale, speak with the Realtor to see how they plan on marketing your home and what their plan of action is to get your home from for sale to sold.
One agent may charge you .5-1% less than another, but in the end, who do you feel will do the best job for you and be the best at communicating with you so you know what is going on with your home. Just because an agent can sell you on listing your home with them, doesn't mean they are the best ones to walk you through the process. The agent charging you a higher commission may actually be working much harder for you, and may actually make you that money back in the sales price they attain for you in the end.
Don't be afraid to ask, the dollars are in the details ;)
Paul Cionczyk| Coldwell Banker Residential Brokerage |Broker
312-433-9931 | PaulCionczyk.Broker@gmail.com |PaulCionczyk.com
Some agents are more than willing to discount their rates, because they are hungry for more business. Other agents are charging full-commissions, and some have even raised their rates in this market, because it takes far more to sell a home these days, than it used to.
Each agent has their own business plan WHICH is governed by the terms of brokers office.
Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
All Commissions are ALWAYS negotiable throughout the USA.
Best of luck,
Broker / Owner & Certified HAFA Specialist
Thom Colby Properties
Newport Beach, CA
Moving Lives Forward (TM)
We NEVER DOUBLE-END a Transaction in our Brokerage. It is never beneficial to the Seller or to the Buyer and it is only beneficial to the Agent.
888-391-5245 Direct Cell
I know you would prefer a fixed number answer, but the truth is that it is negotiable and it also depends on what the agent and his/her brokerage company offers you for it..... So although the commission % is negotiable so are the services and the split to the cooperating agents/brokerages....
So when you meet with an agent make sure that you do know what the commission % is, what the split is and what the various services are that the brokerage and the agent will provide to you the home seller. Is it a full service brokerage or not.....
If you have any further questions or concerns feel free to contact us again and we will be glad to provide you with further information, even a free market evaluation of the current market value of your home and any other real estate information you may find useful.
Your Chicago and Northshore Expert - YourRealtor4Life!
Call several different agents and discuss your home and your situation with them.
There are often several different tiers of commissions--somewhat higher for full-service agents, somewhat less for a la carte agents or services, and lower where they'll put it on the MLS but you're expected to do everything else. That's why it's important for you to discuss your situation and your needs, so that you can find the right agents, paying for what you need (but, in some cases, not paying for what you don't).
Hope that helps.