Have you found a more reasonable agent yet?
I, as a realtor, think that 8% is high. It is negotiable in this market. I would say that 6% is he normal. From that everyone gets paid. Your listing agent pays the buyers agent from the agreed amount. Make sure you ask what they are doing for that commission. Often times when you hire a discount you get exactly that. Somebody who is going to advertise online, locally, and take the time to hold opens and brokers tours is earning their keep. Advertising comes out of our pocket and we don't get paid until the house closes. Their are a lot of good answers here! I hope you have enough information to make a good decision! Good luck!
Answer: Commissions are negotiable. That's how you find out: By asking.
How do you negotiate a commission? The same way you negotiate anything else. You offer something of value in return for something you want. In this case, the thing of value is the agent's opportunity to list your home. You say: "I've got a real nice house, and I'm a 'good' seller--I keep the house in good condition, I'm flexible about when potential buyers can view the property." And so on. "In return, I would like to pay a commission of less than 8%."
As for 3%--go for it. Honestly, most agents I know (and most of their brokers) wouldn't go that low. Some will. If you really want 3%, you may have to trade off some of the aspects of full service that you'd find with other agents. Just recognize that. And just because commissions are negotiable doesn't mean an agent has to go that low. An agent can just say no--just as if, for instance, your home were listed at $100,000 and someone offered you $25,000. It's all negotiable.
If you're FSBO, then it can make sense to offer the buyer's agent something in the range of 3%. It's totally your decision. I can't imagine a FSBO offering a buyer's agent 8%.
One final comment. And please don't take this the wrong way. But if you're selling FSBO, you really owe it to yourself to become more knowledgeable about real estate transactions and negotiations than you currently are. You'll have no support or advice, while the buyer (if working with an agent) will have lots of support and advice.
Hope that helps.
As others have stated, the listing agreement you make with your real estate agent is fully negotiable. If the agent you are speaking with indicates they can not negotiate, set up an appointment with another agent perhaps with a different franchise.
It is understandable that 8% is higher than you expect.
What would your reaction be if an agent indicated they would list your home for 0%?
Seriously, do you expect your home will be SOLD for 0%?
That is actually the key, your goal of getting your home sold. Yep, you can get a lower negotiated rate, but what have you saved after six months and your home has not sold? Keep your attention on the goal of getting your home sold. In the long run, focusing on your goal of getting your home sold will prove to be less costly.
Instead of focusing on the compensation ask about:
1. how many transactions (buyer and seller) has the agent completed this year (buyer and seller) Agent national average for ReMax is 17 transactions annually. None of the glossy material presented matter. If they are not closing deals, their stuff is not working.
2. how may listings do they currently have (30+ listings means your home will be delegated to someone else) You may want to research how many listing you think an agent can handle at one time?
3. What market share does the agents brokerage have
4. how many sales has the agent completed in YOUR area
5. How may listings does the agent currently have in YOUR area? Will any of these listing be competing with your home?
6. What are the termination of listing contract conditions. This is EXTREMELY important. You don't want to get STUCK in a contract that is not working.
As you know, time may not be working to your advantage. Know what your goals are in selling your home, make them clear to the agents you interview and using common sense, and the results they have experienced, choose the agent best prepared to meet your goals. Please, don't sabotage your success by padding the price or failing to prepare your home as agreed.
Best of success in the sale of your home.
Bo Tarantino, President
As the agents who've quoted you 8%, how the money breaks down. How much are they offering to the buyer's agent who brings the buyer. Is that a competitive number, based on other listings. For example, if they're charging you 8%, and only offering 2% to the buyer's agency... and other listings are offering 2.5-3%... where is the other 6% going.
What services are you getting for your money? It's very possible that 8% is a good deal, but you won't know unless you interview several agents in your area, and ask the tough questions.
When selling your home you should do some research and determine what is the best fit for you. Ask friends, your banker or your insurance agent who they might recommend. From there, vet out the individual agents and make a selection that feels most comfortable.
But, based on what you have indicated about pricing the home competitively and your equity position, I would definitely include an agent that has some short sale experience in case your transaction transitions into one.
Best of Luck.