Lots of good comments so far, the most important being that there is no standard fee and 6% may not be out of the question.
Realize that as agents we do our work listing a home up front, no charge to you at all if we don't successfully find you a buyer. If we misjudge our clientâ€™s intentions and do a significant amount of work only to discover after staging, photos, marketing materials, printing, open houses etc that you are not truly motivated and willing to participate in whatever is necessary to sell your home, we walk away with 100% of nothing.
A great agent will assess your motivation and your realistic assessment of what it will take to be successful. If they don't, you should reassess whether you have the right agent. If all you get is a sign in your yard, some lousy pictures and a black and white flyer off the copy machine, you are correct, 6% is way too much.
A great agent is worth more than whatever commission they charge. Our job is to put your needs first and help you get top dollar in the least amount of time with the right amount of preparation. A bad agent will cost you more than just a commission, in fact I could point out examples where seller's either didn't take their agent's advice or the agent didn't give them the right advice and tens of thousands of dollars were lost. In this market, which I believe is getting better, don't be penny wise and pound foolish. Commission amount is important, but whatever amount you agree to pay your agent, make certain you get your money's worth or it will cost you time and money.
Best of luck.
There are a lot of homes right now that are selling quickly & getting multiple offers. You will need a good broker to handle all & any issues that come up. I think we all know that the general rate is still 6% and is money well spent.
In Washington State, real estate commissions are negotiable. In my experience, I've seen real estate commissions vary by as much as 4% between discount brokers and full-service brokers. Among my own listings, commissions vary from client to client, and from property to property by as much as 3%. It all depends on the circumstances, the property, and the client.
When it comes to hiring a real estate agent, experience makes the difference. Choosing an agent based on how low a commission he or she will accept isn't the best criteria for picking an agent. The best agents are usually not available at a discount rate. That's because they have earned a reputation for excellent service, and their clients are willing to pay more for their services.
(Tip: Talk to family and friends; ask them for the name of an agent with whom they've had a positive experience. An agent that you meet through a personal referral will most likely offer you a fair commission because they value the referral.)
I do not cut with the old saw, "You get what you pay for." But I do believe that you can't expect to get MORE than you pay for. Then again, if you can't discern quality, why pay for it?
All the best,
Best to you, I see all prices of homes, in all kinds of markets, and the upper priced homes, it's an art to sell.
While there is a lot of expense and planning up front, there needs to be some flexibilty there. If the home is underwater at $700, it requires conversations with the lender prior to listing and an agent who is a certified distressed property expert can help with that and work with the lender to get an approved price and paid at closing.
The Phinney Neighborhood Assn. has classes for future home sellers a few times each year.
I guarantee you in that situation your listing agent is not working to sell your house.
Listing options include:
Entry only - agent lists your property on MLS. You do everything else (stage, photograph, advertise, show, answer questions, negotiate, renegotiate, etc., etc.). Up front fees from $200 (basically data entry only, you provide info to agent who inputs into MLS) to $500 (agent will come out to gather and verify info to put on MLS). Gives you exposure and ability to offer compensation to local agents through MLS and exposure to potential buyers through agent/broker web sites using MLS IDX feed, as well as Realtor.com, Trulia, Zillow, Yahoo, Google, etc. through syndication from MLS.
Flat Fee - listing services offered in pre defined packages or a la carte for set prices, payment can be all or part up front and/or at closing. Widely varying prices. Can find what seem like exceptional deals ($1000 "full service" listing), but need to be aware that some agents will treat these as a loss leader to use as a lead generator for buyers to represent in buying other houses and, as such, it is not necessarily in agent's best interest to see your house sell.
% Commission paid at closing - agent receives % of the sales price paid at closing. Total commission varies depending on services and price of property. Can get essential services around 1%, for 3% in a high price range may include staging, cleaning, home inspection, premium advertising, professional photography, catered open houses, etc. Can also be used as buyer lead generator, but since agent only paid at closing ,incentive is to sell listed property.
Buyer's Agent fee:
In my area, typical buyer agent fees range from 2.4% (largest county due to historic 60/40 split of typical 6% commission in favor of the listing agent) to 3%(the rest of the metro area). A true buyer's agent(emphasis on agent and the fiduciary, best interest of the client meaning that has) will not be swayed by how much is offered, they will have negotiated their fee with their client up front and explain what is offered and how it affects the client if the property is appropriate. A buyer's "salesperson" (whose emphasis is on their self interest and will steer their "client" to the property with the highest commission) definitely will be. I find 2.5% to be a reasonable amount to offer on most properties. If you think it is in your best interest given your local market to entice the salesperson type agent, offer more than the typical amount in your area. With buyers doing so much of their own searching for properties and not relying on agents, overpaying the buyers agent is not as effective as it once was.
The market in my area requires that your property be in good condition, show well and be priced competitively given current comps. Combine that with good exposure (professional photos of de cluttered, well staged home, well written description, attractive virtual tour or web site) on line in places where active buyers are searching (agent/broker web sites, Trulia, Zillow, Realtor.com. Google, Yahoo, etc.) and the ability to evaluate and negotiate offers, inspections, repairs, etc. and you should be able to get your house sold in a reasonable time for a reasonable price. Figure out what services you need, find an agent you feel comfortable dealing with who offers those services for a fair price and reach an agreement that is clear to both sides regarding expectations, incentives and compensation.
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