Home Selling in Colts Neck>Question Details

Carolyn, Other/Just Looking in Colts Neck, NJ

Why should I pay 6% instead of 4% to sell my house?

Asked by Carolyn, Colts Neck, NJ Fri Feb 27, 2009

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Your question is great and I think you should ask all agents you interview. I think most of these answers are good ones. A great agent shines through negotiations. Agents will have different marketing and this is one way to sift through agents and commission amount. The other side of that coin is the agents character. This is where an agent can be worth there weight in gold and another is worthless. You can not pay enough to someone who knows how to negotiate. An agent that knows how to present himself, knows how to talk to people, is professional, is organized and has a plan will always make you more money than you will ever pay them. I believe this is more of what to look at than marketing. The agent who first answered you seems to me to be a very good agent. I looked at his profile. He is active, professional, willing to open his marketing plan to you instead of thinking one up on the spot. I would interview him. Also, you can tell these agents who are the great ones, because they will not be coming to you begging for the listing. Instead they will simply tell you the truth and if you are not willing to listen or think differently. They will simply pack up and leave. It is not because they dont want your business, it is simply because they have so much to do with people wanting to work with them and they know what works. So they will not list a home is the seller will not listen to them. The other agent will beg you for a listing and be willing to do whatever you want. They will let you be the boss. You will like them because they seem like family instead of an advisor. Family and business do not mix though and that is why those agents usually are begging for business.
3 votes Thank Flag Link Fri Feb 27, 2009
Carolyn: You should't...unless you feel that you are going to get the addition back in expertise and service.
3 votes Thank Flag Link Fri Feb 27, 2009
Hi Carolyn.

That's a great question and something you should discuss with your listing agent. It's important to ask what type of service you will receive for your agents commission. Some agents will not working for anything less than 6% while others may provide the same service at 4-5%. But here is something to keep in mind:

When you list your home, you are not simply paying your agents commission. You are paying the agent's broker and the buyer's agent and broker. That commission is then split four ways. So if you are listing your home for $400,000 for instance at 6% commission and assuming your agent gets a 50/50 split with their broker, your agent actually receives $6000 (1.5% of the commission). From that $6000 must come all your advertising and marketing, errors and omissions insurance, GSMLS fees, Realtor.com fees, etc. etc. not to mention your agents expertise and time -which can be plentiful.

I mention this not simply to say your agent deserves it, but because you want to make sure you are offering enough enticement to the buyers agents to show buyers your home. The more commission you offer to the buyers agents, the better the chance of getting traffic and interest. Some Realtors will not show houses that have a commission rate below 2.5%. I don't condone this practice as I think regardless of the commission split, you should be servicing your client's best interest, which to me means showing them any house that they may love, but not all real estate agents operate the same way. Listing a home below 2.5% to the buyers broker may not be in a seller's best interest.

We're also in a different market, where houses sit longer, which means more overhead costs to your agent and more time spent listing the home. It's also a time where many Realtors are living paycheck to paycheck to keep their heads afloat so many have no choice but to ask for a higher commission rate.

It's important to have a good relationship with your Realtor and open communication. Don't be afraid to ask you Realtor what you will get for 4% versus 6%. S/he may be willing to eliminate a portion of their service in order to accommodate your financial needs, if you are willing and able to take on those responsibilities yourself.

Best of luck in your sale.

Darlene White
Sales Associate
Mountain Resort Properties
3 votes Thank Flag Link Fri Feb 27, 2009
Carolyn,

One final thought. The following link is a very well written Trulia blog penned by a "Other/Just Looking" member such as yourself with input from multiple sources on "Choosing the Right Realtor". http://www.trulia.com/blog/rockinblu/2008/12/i_ve_got_my_fin… .

See criteria #3:

Be sure to mention the names of other agents you have talked with, or will be interviewing. If the agent you are interviewing gives any indication that could be interpreted as a knock against the competition, he or she has failed on an important criterion. If, on the other hand, the agent is complimentary about his or her colleagues, that is a plus.

Good Luck!

Francesca
Web Reference: http://www.PatrizioRE.com
2 votes Thank Flag Link Tue Mar 10, 2009
I bought and sold my house in California with a 4% commission. I think this is common in a higher priced market.
2 votes Thank Flag Link Mon Mar 2, 2009
Hi Carolyn,

As we know, all commissions are negotiable.

You need to discuss with your prospective agent what they are going to do in marketing your home to justify the commission. I give great detailed information regarding my marketing techniques to support the commision structure that I require.

Advertising is costly. All forms of advertising, from internet to print. I not only advertise in NJ, but Brooklyn and Staten Island to find the buyer for your home. I have opinions regarding different business models also. Remax is different then C21 and both are different from a corporate owned CB/C21/Prudential company to a C21-"Bob Smith" ( that is an example) .

If you would like a personal discussion reagrding the differences, please feel free to call me directly.
I am a short 5 minutes from Colts Neck and we can discuss the differences in person.

John Sacktig
Broker /Manager
Orange Key Realty
Office: 732-863-6969
Cell: 732-213-1409

Luxury Property Specialist

JSacktig@Orangekeyrealty.com
2 votes Thank Flag Link Fri Feb 27, 2009
Sellers always believe that reducing commission means more money in their pocket. This only works with small moves in commission (.25-.5%). The reality is the buyer "pays" the commissioin no mater which side is out of pocket since it is their proceeds at close of escrow used to pay the ALL costs. To demonstrate this is easy. Assume some 2 sellers decide to sell their identical homes across the street from one another. One owner lists his house with an agent pays a full commission and gets a full price offer. (Forget about the market conditions for now). The other seller thinks, "I can save the commission and I'll just sell by owner" and lists the home at what the other house is in contract at. A prospective buyer comes along and sees the two houses priced the same. MOST sophisticated buyers will think. "There is no agent on this one I will offer him 6% less and get a discount on the home since there are no agents." So you see how the commission is built into the sale price of the home.

For reduced listing commissions there is a risk unless you are in a high demand neighborhood. Top agents earn top commissions for performance and experience. They typically price better, market better, and their transactions go smoother. Commissions are market based so if your neighbors have been paying 2.5%-3.0% and you want to pay 2% better agents will be looking to see where the value is to them. In most cases sellers who grind commission expect full service as well. Most agents will compromise to a degree but remember our job is to market your home and compromised come in the form of reduced time and energy in the marketing of your home potentially increasing your time to sell.

Now the selling side commission is another story. Realtor agents have to show your property at any commission. Whether your home is the first or the last home to get shown is controlled by the agent. I guarentee the homes with 4% commissions always get shown first. In other words a 1% commission says a seller believes his home is so much better positioned in the market the home will sell itself.

I hope that helps.
Web Reference: http://www.bob2sell.com
1 vote Thank Flag Link Wed Mar 11, 2009
Carolyn,

No reason to pay 6% or 4% for that matter. Our business model enables sellers to pay a flat fee ( see http://www.PatrizioRE.com ) while choosing the commission rate offered buyers' agents - usually 2.5% (motivated sellers have chosen 3 or 4% as it attracts hungry agents).

While there are a plethora of naysayers who use fear based tactics to dissuade consumers from using our services, one can only refer to the numbers to counter these ascertains. Realmart Realty landed in the top 5% of all listing brokers in Monmouth County, with the top 2 agents in Monmouth/Ocean County MLS being Realmart agents.

Please see my website for more details or give me a call @ 732.606.2931 for more details as Colts Neck falls within my marketing area.

Francesca Patrizio, Realtor
NJAR Circle of Excellence '06, '07
Million Dollar Sales & Marketed '06, '07
Web Reference: http://www.PatrizioRe.com
1 vote Thank Flag Link Mon Mar 9, 2009
Carolyn, Do not be fooled by the numbers game Gregory is playing, I'm pretty sure he would agree to 7%.

In this market, do not let 2% be the reason you could not sell.

Just my opinion, Dunes
1 vote Thank Flag Link Fri Mar 6, 2009
I agree - Pay 4% to the selling agent and 4% to the listing agent for his marketing. Even with the slow market I would not pay 12% if I were you.
Web Reference: http://GregoryBain.com
1 vote Thank Flag Link Mon Mar 2, 2009
Carolyn
Thank you for your question. This response varies from the prior answers, so please take time to read it.

Your purpose is paying a lower commission is to net more profit at the close of the transaction, right?

There are a number of possibilities that you should anticipate when trying to sell your home:
1. If the average commission in your area is 3% (which appears to be what you are saying), if a Realtor did agree to list your home for only 4%, the likely scenario is that they will offer the Realtors representing the buyer 3%, leaving them only 1%, or perhaps offer the Realtors 2.5%.

If they offer the Realtors 2.5%, your home becomes the "discount listing" and may not receive the showings that you need.

At a 3% commisison that means the Realtor would list your home for 1%. Assuming the broker takes 50%, why would a Realtor take a listing for 0.5%/

As the seller I would ask myself these questions:
If they are only keeping half a percent for themselves, how motivated are they to sell my home? Wouldn't they make more money selling someone else's home? Or, if a buyer saw the listing, contacted the listing Realtor, then the Realtor might show them other homes where they will earn a greater commission.

2. The other question is "what am I getting for half a percent?". In many cases we read posts from sellers working with discount brokers or MLS Entry Only brokers asking for answers to questions that they really should be asking their broker. For example, "Why isn't my home selling?"

As it turns out, in most cases the money that you "save" in commissions you actually lose when the sale closes. The expertise that you need to properly prepare, market, and negotiate is not there when you need it...because you did not pay for it.

To prove my point, I track stats on the RESULTS of Full Service Brokers versus Limited Service and MLS Entry Only Brokers. For the last eight quarters the results have been the same:
Homes that a listed by Limited Service or MLS Entry only brokers FAIL TO SELL more than twice as often as Full Service.
When they do sell they sell on average 96% of asking price. Full Service Brokers average 99.4% of asking price (for both when the properties sell within thirty days).

Why do you think Full Service Brokers net their sellers an extra 3.34%? Because they are able to project the value of the property best, and buyers see the vlaue.

The other major factor is simply the volume. These stats are for the last three months of 2008. During that time the TOTAL number of MLS Entry Only and Limited Service listings that sold were 12, compared to 866 sold by Full Service Brokers.

Good luck.
1 vote Thank Flag Link Fri Feb 27, 2009
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
Carolyn,
By the way, the website I mentioned has 10,000 Realtors in all fifty states including your area around New Brunswick or your specific town. By the way, newspaper advertising is way overrated. It does showcase a real estate office but buyers much prefer interactive listings that are forwarded to them by their buyers agent, who represent 85% of the buyers. The other 15% can find your listing on Realtor.com.

Call me if you want to discuss our referral program.

Jim Tullmann
RealtyNET USA
314-961-3400
1 vote Thank Flag Link Fri Feb 27, 2009
New Jersey - this is an old question, and there is a more recent thread currently dealing with this very issue.
I respectfully disagree with you in that I will show whatever home works for my buyer. Period....end of story!

Most buyers today are up to date on the market through the internet..........how would I explain NOT showing a home just because it had a lower commission???......conversely, how would I explain showing a home that isn't what my buyer is looking for, and wasting their time, just because it had a higher commission??? My credibility with my buyer is vital. I work hard to develop that trust, and no commission is worth risking losing that, or losing a client.

In my experience, the best incentive to help get a home sold is an incentive given to the buyer, not the agent. Another great incentive....is a price reduction!!! Just my opinion.........based on almost 25 yrs. of experience..

Best wishes to you.
Debbie Rose
Prudential NJ Properties
0 votes Thank Flag Link Sun Aug 23, 2009
The more an agent can make the more they will show your property.

As much as I would like to pay an agent nothing paying more MUST result in more showings and a faster sale
0 votes Thank Flag Link Sun Aug 23, 2009
I think the questions old and new as well as answers old and new, can always help someone...both agents and clients. You should have left your answers on the site if they were good answers. As long as I have been in the business this has been a reoccuring question...In fact new agents often ask how to field this question, sellers often ask this question. It's not how much do I think my time is worth, it is the value of full service that benifits my client. Why should I pay 6% instead of 4%, it's one that doesn't expire as well as the answers.

Best regards

I realize this isn't a chat site...you can email me or call me if you like 732-757-7329 or JoyDeLucia@yahoo.com
Web Reference: http://www.JoyDeLucia.com
0 votes Thank Flag Link Sun Aug 23, 2009
Welcome to Trulia Joy (not that I am any kind of official welcome wagon or anything)........if you look under the question, you can see when it was first asked.....it also shows when the responses were given. Sometimes these old threads seem to pop up, so it's good to check the dates, and see if they are currently being answered. I answered one recently, then realized it was quite old, as were the responses, so I deleted it.....it happens.
See you around in Trulia!
Debbie
0 votes Thank Flag Link Sun Aug 23, 2009
Thanks Debbie,

I am new on this site...I always ask for most recent ??...I didn't see it answered the way I answered. But in light of your comment...she may very well have expired with a" help you sell broker" and is ready to try a full service agency.
Web Reference: http://www.JoyDeLucia.com
0 votes Thank Flag Link Sun Aug 23, 2009
Joy - this question was asked back in Feb..........I bet Carolyn has already sold and moved!
0 votes Thank Flag Link Sun Aug 23, 2009
Currently we are looking at a 1/2% market decline per month. Last year prices were dropping between 1 and
2 percent a month. In a declining market your home loses value every month. So if you list your house and it does not sell in 6 months, it will cost you around 3%. Last year if your house didn't sell in 6 months it cost 10 to 12%. Ultimately in a declining market selling your home in the shortest amount of time will save you the most money. Is your discount realtor going to go global with your listing (multiple sites on the internet). Will they be negotiating every offer that comes in. Will they be handling the open houses, showings, paperwork, advertizing, mailings, phone calls, interacting with attorneys, inspectors, and other agencies to move the sale of your home to the closing table. If so GREAT!...if not trying to save 2% could cost you 3 or more....do your homework...
Web Reference: http://www.JoyDeLucia.com
0 votes Thank Flag Link Sun Aug 23, 2009
Because your Realtor has to spend a lot of money to market your home (advertising- now extremely expensive, virtual tours, colored brochures (at 39 cents a page), signs, gasoline, costs of doing business, etc., etc.,) plus all the hundreds of hours of computer work, legwork,telephone calls, writing ads, delivering brochures to other offices, getting the word out about your home, keeping up-to-date with the entire market as well as the market around your home, etc., lots of work that is done in the background to get your home sold which you never see! Then, the Realtor - more often than not - has to share the listing fee with another realty company, plus give their own company its split (and some of us pay a 6% franchise fee to be a part of an international brokerage on top of that to bring more exposure and relocating people to your listing). Usually, if the commission is only 4%, the listing realtor will take only 1% - so that your property is more desirable for agents who may want to show it and won't pass it by because of the low fee. That leaves the listing agent with very little to work with -- so they cannot do as much marketing for you as they can if you list it for 6%. They simply can't, because the money is not there!

In today's market, listings are staying on the market longer and cost so much more to market ... and agents cannot work for nothing --or less than nothing, often costing them money out of their pocket to sell your home -- (I've had that happen!). Besides, agents find it hard to get excited about working hard for a seller who believes we are not worth the money we earn. The old saying: "You get what you pay for!" is still true in every walk of life! Would you like it if your boss asked you to take a pay cut to do the same job as the guy next to you??? You probably wouldn't work as hard, would you??? Enough said!
Bev Shanks
0 votes Thank Flag Link Thu Mar 26, 2009
If selling a home was easy, why would anyone use a realtor. fact is, the marketing of real estate is a billion plus dollar business.

facts, in any market, realtors are involved in about 90 to 95% of all transactions
0 votes Thank Flag Link Wed Mar 25, 2009
if you can do a better job, then go for it
0 votes Thank Flag Link Tue Mar 24, 2009
If 75% of all buyers are brought to homes on the market for sale by real estate brokers, I'd think it a wise idea to incent them by offering a full, 3% commission. Further, with the over abundance of 'for sale' properties on the market, it becomes key for the motivated home seller to set his property apart from the others; staging, correct pricing, a comprehensive marketing program geared towards broadcasting the word out to the buying public, and by incenting the best, local buyer representatives with a full commission. That's my take for whatever it's worth.
0 votes Thank Flag Link Tue Mar 24, 2009
Hi Carolyn,
my oh my, did you think that you would "open such a big can of worms", just a figure of speech, because you got a lot of different answers here and some quite passionate as you can see.

You know I still think the truth of your questions lies somewhere right in the middle.... the listing agent, and now lets forget the high powered big brokerage companies with pages and pages of ads in the papers and huge beautiful offices and staff, someone as you know has to pay for those, but just think small think about the individual real estate agent, who is as you probably know an independent contractor (we are not employees of brokerage companies) we do not have expense accounts we do not have a salary, so we make only money i.e. income if and when a loyal client Seller or buyer closes on a property with us.....
Now you have to think about it that this particular agent you pay your % of commission to has to share that, mostly half or so with the other brokerage company/agent who brings the buyer and then the agent has a
commission split with his or her brokerage company as well. So at the end there is very little left, if you then deduct the expenses incurred by the agent, and the taxes he or she has to pay, very little goes into the agents pocket as net income..... But it may even look a little bleaker if you look at the efforts Agents make while working for a seller for several months and then the seller decides not to sell anymore (all the expenses out of the agent's pockets gone!!!!) and the buyers who are looking with an agent to find the right home and after several weeks and sometimes several months they decide they can not find what they like, or not afford what they like, and all the time, efforts and expenses the agent incurred also gone!!!!

So when looking at the agent as an individual business, it is easier to understand for the buying and selling public why the general commission % is a certain amount....

Just thought this may help you understand.... and if I have given that answer once before, well it does not hurt...

And I agree these days, heavy internet marketing and marketing to the real estate community is most efficient. Newspaper ads rarely are worth the expense required to put those ads in the paper and few if any buyers arrive at properties based on those ads.

Hope you are a little clearer about the commission and why and what, and if you are still in need of a good local Realtor to assist you in selling and buying process let me know and I will gladly connect you with a partner Colleague of mine in your area. E-mail me to edithsellshomes@gmail.com
Edith YourRealtor4Life! Working always in the very BEST interest of her clients and so do her partner Agents!
0 votes Thank Flag Link Tue Mar 24, 2009
I realize you have probably already made your decision, but maybe my remarks will help the next person facing a similar dilemma ...

I love the "you get what you pay for" response from traditional full-fee agents. That is absolutely true! If you think that a picture in the local paper that is so small you can't even recognize your own home is the key to selling your home - then 6% is the way to go. If you believe that having someone sit in your home on a Sunday for 3 hours while you hope that none of your belongings walk off is important - then 6% is the way to go. If you like coordinating 4 visits with the agent and the photographer and the measurer and then the agent again - then 6% is for you. If you like the feeling that around 1% of the proceeds of the sale of your home will go towards rent and support staff for your brokerage firm’s large office – then please pay 6% commission to sell your home.

However, if you believe that most home buyers are using the internet to conduct their home search and you think open houses are just farming tools for agents to get more business, not sell your home, then a 4% listing is perfect. 4% listings are great for those sellers with a hectic life that would rather e-mail their paperwork to the agent than arrange an extra visit. Or those sellers that don't want to leave work early 3 times in a week just to meet the various agents, photographers, etc at their home. If you don’t want to have to run over to your broker’s office to meet, but would rather meet them in the coffee shop near your office, then a 4% brokerage may be for you. If you judge your agents effectiveness by how many offers you receive and not how many unqualified buyers and curious agents traipse through your home, then a 4% broker may better meet your expectations.

Our competition calls us discount brokers, we think of ourselves as efficient brokers. 4% listing brokers spend their time processing listings, not pursuing new leads. Our company keeps only 1% for the listing fee and offers a full 3% to the buyer’s agent. Our pricing model brings customers to us and forces us to become very efficient at the value added steps of the selling process. Yes, we have trimmed some of the steps that research shows is unlikely to sell your home - like print advertising, open houses, and expensive office space - but we do provide an efficient FULL SERVICE alternative to 6% listings. All brokers have different strengths and every client and geographic region has different needs. I think there is room enough in the market for everyone, so choose the service type that is best for you.

Cat McSwain
Member/Manager
Broker, REALTOR
My Dog Tess – A New Breed of Realtor
“Offering Cash Back to Buyers and Low Commissions for Sellers”

Serving the Triad from Winston-Salem, NC
Web Reference: http://www.MyDogTess.com
0 votes Thank Flag Link Tue Mar 24, 2009
However, I must disagree with the offering of 1% to the buyers agent. We have found the most success with those that offer 2.5 % or 3% and the choice between the two depends on the seller's motivation to sell.

Francesca
0 votes Thank Flag Link Wed Mar 11, 2009
Thank for the plug Why Buy? Rent!. . . .This is the exact service I provide!

Francesca
Web Reference: http://www.PatrizioRE.com
0 votes Thank Flag Link Wed Mar 11, 2009
There is no reason to pay even the lower 4%. Check out flat fee listings. I think it is about $500. I might offer a 1% cut to a Buyer's agent. Your price will be low without the commissions and that is what sells these days.
0 votes Thank Flag Link Wed Mar 11, 2009
Instead of going with an all-or-nothing approach, you could also try a hybrid approach that some investors will use. They'll go with a discount broker that also offers full service. They'll market their properties for the first month or 2 using the discount service, and they'll go with a full service listing if their properties don't sell in that first month or 2.
0 votes Thank Flag Link Mon Mar 9, 2009
Carolyn,

Simply put....there is a difference between the level of service you will recieve when dealing with 4% service instead of 6% service.

Unfortunately, many people only look at the surface and see only the difference in the fee for service without getting a feel for the differences.

The two most significant marketing issues in today's real estate market are price and visibility. Most discount services don't go much beyond placing the property on the MLS and do very little property promotion. The more people that know about your homes availability the greater the chances of selling the home.
0 votes Thank Flag Link Fri Mar 6, 2009
Carolyn, there's a big difference in a "real estate agent" than a professional Realtor. Any agent who has a real estate license can put your home in the MLS and do nothin more ,so she/he is happy to get 4%. A professional Realtor does much more to market your home, She/he spends many days and "money" in schools to keep up with the market trends in order to know how to market your home.They have many different web sites that offer your home to buyers. Most buyers now start their home search from the internet. So in reality, you will end up getting your home sold quicker with better service and probably more money in your pocket.
Good luck
0 votes Thank Flag Link Fri Mar 6, 2009
Knowing your price range, style and size of home would probably help all the Realtors who are trying to assist you with a helpful answer, if you care to share!

Many properties are on the market for much longer than a few years back, so the listing agent will have to work harder, spend more of his/her own money, advertise and market more, more open houses, and on and on,
So this is not the time for agents or brokerages to negotiate on their listing commissions, no matter where in the country they work.

I would be curious to find out what you will finally do..... do not forget to share it with us...

Good luck to you...
Edith edithsellshomes@gmail.com
0 votes Thank Flag Link Mon Mar 2, 2009
I work just as hard for 5% as I do for 6%. The difference is 6% listings get more traffic. End of story.

You best buyer is the person willing to pay the most money for your home.

The odds of finding your best buyer are in direct proportion to the number of people your home is exposed to.

Like it or not, under-commissioning your home will lessen the number of showings your home will get and in the end cost you money!

With so much inventory on the market, and limited time to show houses, agents much choose which homes to show their clients. When forced to make choices, most agents will choose to show their clients homes that are priced right AND offer them the greatest likelihood of getting paid!

As to the question of the 4% listing... there is absolutely NO WAY an agent can take a listing at 4% and give the service I provide. It would be a losing venture.
Web Reference: http://www.JoTheRealtor.com
0 votes Thank Flag Link Mon Mar 2, 2009
Hi Carolyn, you already got so many good responses.... And I do not blame you to wonder why especially in these difficult times and the economy the way it is.
But you know the old saying You pay for what you get, most of the time!

In other words I always suggest to anyone who asks me.... Select your real estate agent the same way you would your attorney, your dentist or your doctor ..... You want them experienced, you want them may be close by, you want them to be reachable in other words if you need to talk to your doctor you need not wait till office hours you call, leave a message and he or she calls you back etc. etc.

Well use the same standards for when choosing your Real Estate Agent, you want to see expertise, professionalism, good rapport with you, you want to find out how he or she will negotiate on your behalf, will they keep you informed on a regular basis, and are they internet savvy etc. etc. All of the above and a few other items the other agents already touched on are way more important than the amount of commission
If you select the right Agent for YOU, he or she will work very hard to get your home advertised marketed, open houses, reverse prospecting, flyers etc. etc. and most of all they will negotiate in your very best interest.

And you will know that they are then worth every penny of the commission they ask for! And yes some agents explained that the commission is split often by 4 (2 different agents and 2 different brokerage companies) and believe me if you could add up the hours a good agent spends on a listing (and much of their work you as the seller do not see .....) the hourly rate may surprise you!

So concentrate more on the rapport and trust with your agent, then 1 % more or less commission.

Good luck to you!
Edith YourRealtor4Life! Working always in the very BEST interest of her clients!
edithsellshomes@gmail.com
If you ever meet anyone moving to Chicago / Northern Illinois send them my way!
0 votes Thank Flag Link Fri Feb 27, 2009
The two questions that get the most responses, the most detail, the most passion are....

I. Does anyone know a good agent, I need a good agent?

2. What should I pay my agent?
0 votes Thank Flag Link Fri Feb 27, 2009
Hi Carolyn,
Each realtor you interview should tell you what they will do for the commission.

Some common differences are: where they advertise, do they place listings on several different websites, what print publications do they list in, do they do open houses, do they have an enhanced listing on realtor.com, will they include multiple pictures or a virtual tour, will they negotiate on your behalf, etc. Also make sure the commission you are offering to the buyers agent is competitive for your area, you want to get agents attention.

Every agent works differently, some harder than others, so you have to take everything into account when choosing an agent.

Thanks,
Heather Daccurso
Weichert Realtors-Howell
626 Route 9 South
Freehold, NJ 07728
Phone: 732-577-0440
Cell: 732-580-5309
Email: heather@heatherdaccurso.com
0 votes Thank Flag Link Fri Feb 27, 2009
Unfortunately Jim seems to be one of those guys that do nothing and give the impression to soon to be sellers that we are like him. Stripping away the respect that our profession deserves. Fortunately you can tell how much help you will get when that person will sell themselves short before everyone on the internet. Dealing with respectable Agents and also Darlene made a great suggestion to ask the agent what services they will provide for a reduced commission. It all depends on your situation. I hope you found some of the answers you were looking for .

Regards,

Tom
0 votes Thank Flag Link Fri Feb 27, 2009
Carolyn,

Although you might feel that only paying out 4% is a good idea you might want to look at it from a different perspective. Selling someone else's house is not easy. There can be contrasting personalities and points of view within the home. There are negoitiating skills necessary to protect you and your interests. There are zoning/permit issues that come up. There can be a milllion issues that come up and in the end it is the Agent that watches out for your interests while keeping up a good repore with other agents that they can't stand but want them to help sell your home. Extra advertising that comes out of our pocket. Open houses that take us away from our families on the weekend. After hours phone calls. Also having to be careful because of lawsuits, either from other agents or sellers/buyers. We are required to carry insurance just for that reason. Real Estate Agents continually get training on the latest this and that. There are so many things that are done behind the scenes to make the transaction not just go through but smoothly. That is the reason to interview a few agents. Talk to people in your community. Just because someone has the most listings doesn't make them the best. Not giving the maximum you could would be like negoitiating your pay month by month. We work hard for that % and most of the time it is for strangers. A lot of agents have won't do it for 4%. Although ethically we have to show the buyer whichever house they want, an agent that puts their needs ahead of their buyers(yes, they are out there) will find any reason to discount buying that particular home for another one that gives more. Typically the more the commission the more foot traffic and the more offers. You don't see Foxtons anymore, do you? So please rethink your position. Also find the right Agent that deserves it and has the resources.

Good Luck
0 votes Thank Flag Link Fri Feb 27, 2009
You should not. There are enough experienced Realtors out there who are willing to discount their commission for a full service listing (have them define full service) to where you can save thousands IF the property is above $150,000 or so. Commission is based upon the sale price so the higher your sell price, the lower the commission can be. If you would like quotes of listing commission from national franchise brand Realtors, who will discount for you, let me know and I will direct you to a website where you can see commission bids, Realtor proofiles, and remain anonymous. I can also sift through the quotes and refer the one that is most qualified, based upon your price range and location.

Jim Tullmann
0 votes Thank Flag Link Fri Feb 27, 2009
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