Home Selling in Los Angeles>Question Details

Drake77, Home Seller in Los Angeles, CA

What is the standard mortgage broker's percentage for selling a home in los angeles, CA?

Asked by Drake77, Los Angeles, CA Tue Apr 5, 2011

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11
Hi Drake77,
I understand that you looking for a ballpark figure, I'm the same way a lot of times.....

BUT!

As Brokers, discussing and comparing fees can land us in HOT WATER!

I always avoid mentioning any type of fee structure when other brokers are nearby. Here in Texas, and I'm sure the rest of the country, the Deceptive Trade Practices Act prevents anyone or group from getting together and discussing or rigging prices. In basic terms, this is "A No-No".

I'm sure no harm was meant, nor any animals harmed in this discussion... But just a reminder is all, as most brokers just want to help and are happy to answer questions.

Want to know what I THINK is typical for my area, give me call, I'm happy to talk about it. Comment or give my pricing in a public forum for other brokers to 'fix with'. Not so much...

What CAN be said, is that they may be negotiable. Most will negotiate depending on what you need...but not everyone. Not everyone charges the same fee, OR provides the same level of service or even the same list of services.

When you're in the market, it is prudent to interview several brokers for the job, and make sure that you CAN get along with the person you hire. A high level of trust has to be reachable between the two of you, as you are undertaking a huge responsibility that is already loaded with plenty of opportunity for stress, your relationship with your agent should not be one of them.

Hope this helps!
1 vote Thank Flag Link Tue Apr 5, 2011
Thanks for the answers. Sorry, I just got off the phone with a mortgage broker when I wrote this question but I meant the standard percentage for REAL ESTATE BROKER/AGENT not a mortgage broker. Thanks to those who understood my misnomer.
0 votes Thank Flag Link Wed Apr 6, 2011
The mortgage broker is paid by the lender, not by you, but the commission to them comes from the fees you pay up front. It is a very low amount, sometimes only a quarter of a percentage point on the loan value.
Deborah Bremner
The Bremner Group at Coldwell Banker
REALTOR, 00588885, ABR, CDPE, eAgent, CSP, SFR, HRC, CRE
(O) 310-571-1364 DIRECT
(D) 818.564.6591
(C) 310-422-4288
http://www.thebremnergroup.com
Accredited Buyer Representative|Certified Distressed Property Expert |Pre-Foreclosure Specialist Certified
I want you to know that I appreciate any referrals from friends and associates who may be in the market to buy or sell real estate. You can count on me giving them the same high-quality service I provide to all of my clients.
0 votes Thank Flag Link Tue Apr 5, 2011
Sales commission percentage is negotiable from a low flat fee to 4%, 5%, 6%... ; It's not set by law.
If you're interested in selling, I'll be glad to assist you with a free CMA report.

Have a blessed day!

Doug
(323) 285-8864
Web Reference: http://cashrealty.net
0 votes Thank Flag Link Tue Apr 5, 2011
Commissions are always negotiable between you and your agent, there are no set standards as it would go against Federal Laws...see link...
http://www.justice.gov/atr/public/div_stats/211491.htm
0 votes Thank Flag Link Tue Apr 5, 2011
5 to 6% for single family home, for commercial or vacant land could up to 10%

W Castillo
Coldwell Banker Residential Brokerage
Broker
323-906-2440
0 votes Thank Flag Link Tue Apr 5, 2011
Drake,

A real estate AGENT'S fee for selling is generally 5%-6%. It is negotiable.
Web Reference: http://kobicosta.com
0 votes Thank Flag Link Tue Apr 5, 2011
Hello Drake77, I believe you mean real estate agent/broker, a mortgage broker handles the loan process for buyers. The fee is completely negotiable, however there are definite advantages to listing your home with a full commission, one is many brokers may not include your home to show to their buyers if your home is not listed with a full commission-which can mean a lot less buyers will be viewing your home and potentially submitting offers. Here is a blog I wrote recently that I think will greatly help you. Also, feel free to contact me anytime and I would happily prepare a comparative home market analysis of your home for you.

http://heatherpaul.net/post/2217733/how-do-i-price-my-home-f…

Have a great day,
Heather Paul, Realtor
Coldwell Banker
(310)586-0364
0 votes Thank Flag Link Tue Apr 5, 2011
Dear Drake77, I believe you are confusing a mortgage broker with a real estate broker. A mortgage broker will not charge a seller for selling their home.

A real estate broker's commission is never fixed and always negotiable. My brokerage charges a flat fee for listing and and selling services, other brokers may charge up to 7 or 8 % or more depending on the services provided to the client. You just need to check around.

Good luck!

Diane Wheatley, Broker
diane@moveupproperties.com
Web Reference: http://moveupproperties.com
0 votes Thank Flag Link Tue Apr 5, 2011
Hi Drake:

It is all negotiable. You may want to shop around to find the best mortgage rate and fees for your situation. Also, the mortgage broker does not sell your home, they do the financing of the loan to purchase the home. The mortgage fees are usually classified as "points" and/or loan initiation/origination fees.
i
A real estate broker is the one that sells the home and the commission to the seller is also negotiable. When an agent/broker lists a home for sale, the commission amount is determined at that time. The average commission in Los Angeles is 6%, however, many agents will list a home at 5%, with the commission being split between the listing agent and the buyers agent. The seller usually pays the commission out of the proceeds of the sale of the property.

Again, it is all negotiable.

Feel free to contact me if you would like further information.

All the best,

Kat Becker , Agent
Prudential California Realty
katbecker@hotmail.com
0 votes Thank Flag Link Tue Apr 5, 2011
You said for a mortgage broker... if you are selling a home, you wont be charged from a lender.... however,
For a FULL SERVICE real estate broker, the rate is 5-6%.... Be sure to find out how much marketing and advertising the broker is going to do for you and how they plan on showing your property... I would be happy to meet with you and discuss this with you... I am an international award winning real estate professional and highly experienced listing agent. Thank you.

Sincerely,
Richard "RJ" Kas (SFR, SRES)
"Representing the finest properties from Los Angeles worldwide"
KAS Properties - Coldwell Banker Previews International - Beverly Hills East
9388 Santa Monica Blvd, Beverly Hills, CA 90210
310.859-5334 office - 310.488.9826 mobile - 310-273-0670 fax ATT: RJ
RichardKas@gmail.com - http://www.RJforLA.com - DRE: 01352771
Sellers Buyers Investors Leasing Consulting
0 votes Thank Flag Link Tue Apr 5, 2011
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