Home Selling in Fort Myers>Question Details

tdscm1, Home Buyer in Fort Myers, FL

6% or 7% commission?

Asked by tdscm1, Fort Myers, FL Thu Mar 7, 2013

We are about to put our home on the market & have called in a couple of realtors. Both came up with same asking price but one wants 7% commission to do basically all the same things as the other agent. 7% agent says we will get more showings. House is in great condition in desirable area & will practically sell itself so we don't want "lookers"; we want qualified potential buyers!

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There is no guarantee a higher commission will bring more buyers. Best way to encourage qualified purchasers to make an offer is to keep the home in show ready condition, declutter, de-personalize and price aggressively (this number will really depend on when you would like to sell it). Internet market and excellent pictures are also important.
0 votes Thank Flag Link Thu Mar 7, 2013
its been 3 months most homes in Lee county that are properly listed are selling in 45+/- days...

did the agent get your home under contract yet?

UM, Clayton Anti-Trust Act, anyone remember that?? Yeah you probably want to double check answering questions like this...

http://blog.houseguy.org/
1 vote Thank Flag Link Thu Jun 6, 2013
TD,
Your statement, "and will practically sell itself' clearly indicates your choice.
So to play along with the entertainment value of your question.....
You should ALWAYS pay the highest rate!.
It helps speed along the economic recovery.
After all, isn't' that what the business strategy of "the Walmart' all about?

hmm, maybe they say, "Same more, live better."
Such a hard choice.
1 vote Thank Flag Link Fri Mar 8, 2013
You pose a great question. Your listing agent has a fiduciary duty to use any and all legal and ethical means to best represent you in procuring a ready, willing and able buyer for your property. That includes using any and all means to cast the widest net possible to obtain offers.

As a Realtor, you take an oath to promote your client's needs above your own (commission in this response). But not all real estate agents are Realtors. So each agent make a mental choice to either abide by the code of ethics or not with each transaction.

Now if you take whatever you deem an appropriate number or percentage of agents that will place THEIR needs above their clients needs, they have buyers too that they represent.

So if you list at 7%, they see that BEFORE they show your property and a subtle hint or comment to their buyer may be just enough to tilt the scales into that buyer making an offer on your property instead of another. So, didnt your listing agent do thier job for you? He/she took advantage of a wider means of offering your property and it resulted in an offer to you FIRST.

Now lets look at this in real numbers. We have 5 homes for sale in the same area, same size and same condition. All listed for $100,000. Realize that virtually every seller has wiggle room, its just a fact of life.

So the buyer's agenta arranges to show all 5 and sees the last one offers 3.5% commission and all others are at 3.0%. The agent suggests that the last property offers the best value even though they are all pretty much the same. The buyers agree. They make an offer of $100,000 and the seller accepts, the deal closes.

Now- the seller paid $1,000 more in commission than the other 4 offered. But this house is the one that sold, the other 4 are still on the market

Now would any of the other 4 sellers have accepted $99,000? Probably all would have. After a property has been on the market a while, the seller's usually reduce the list price and probably more than $1,000.

So, the seller paid $1,000 more in commission, stoped paying taxes, insurance, utilities and upkeep on his property sooner than the others did. That probably saved the $1000 "extra" commission all by itself.

You could have always lowered the price to what $95,000, $97,000?

So the buyer is happy, the seller is happy, the listing agent did his job above the other 4 listing agents and took advantage of ALL the agents out in the market place, ethical and unethical and completed his task ethically and successfully for his client. The property was sold first.

Sellers need to realize that they are either working with their agent or against them. You can't expect something for nothing, and be disappointed when you "get what you pay for".

If this were an easy job, everybody would do it. Its being successful that makes you good at what you do. Learning people, knowing how to take advantage of the market is what everybody wants an edge in, but only a few realize how to do it.

It matters not if the property is priced correctly or not in this question. While it needs to be in order to actually sell for lost of other reasons, we assumed it WAS priced correctly and the other 4 were as well.

I have 15 years experience and with 640 sides closed, I have a fairly successful resume. Consider that average agent sells about 8 homes a year.

There are plenty of agents that take the easy road, offer to "work" for a lower commission, overprice the property and hope someone else sells it or wait until the price comes down to market value and then it sells.

But that is only part of the puzzle. You need to pick an agent your gut tells you is the right one for you. Look untilou find them.

Cheers

Kevin Cloutier, Commercial & Residential REALTOR
A HouseSOLD Name
1 vote Thank Flag Link Thu Mar 7, 2013
Past clients recomendations can be invaluable. Ask your friends, family, co-workers even in your bank to recomend a real estate agent that they trust. Interview several real estate agents, until you find one liakeable that will click with your needs right away. The sell of your property are the results of agent's marketing plan, agent's contact through previous clients, referrals, friends, family and personal contacts.

All the best,

Maria Cipollone
Century 21 Tenace

http://www.Flahomespecialist.com
1 vote Thank Flag Link Thu Mar 7, 2013
Is 1% your only impediment?
How about their Marketing Plan?
How about their Communication skills?
How about their Integrity?
How did they present themselves?
What did they expect of you?

Maybe Mr. 7% is a better deal for you?
1 vote Thank Flag Link Thu Mar 7, 2013
well said.
Flag Thu Mar 7, 2013
Great reply!!!
Flag Thu Mar 7, 2013
I charge 6%. Recently, due to the marketing I did, I sold a condo in 10 days, and I sold a single family home in 7 days. I cannot promise I will sell yours that fast, but I can tell you that the marketing skills I deploy are at the top of the industry. Would you like to hear more, give me a call at 239-287-6617. I think we need to talk.
Thanks, Jim Westerfeld
0 votes Thank Flag Link Fri Mar 8, 2013
Our listing agreement shows the percentage of commission being offered to the buyers agent. If you are seriously considering the agent that is charging 7% ask them before agreeing to list what percentage they will be offering the buyers agent. If they see 3.5% that obviously indicates they are taking 3.5% on the listing side instead of only taking 3% and offering the very attractive 4% to the buyers agent. You might also ask if they will agree to charge you a little less if they happen to have the buyer.
0 votes Thank Flag Link Fri Mar 8, 2013
Yesterday you received 20 answers to this question. Today you re-posted it exactly and there are 5 answers so far.

I would really appreciate that once you reach a final conclusion, based on all our opinions, you let us know what you finally chose to do. And maybe include what you learned that made you go in that direction.

Thanks in advance tdscm1.
0 votes Thank Flag Link Thu Mar 7, 2013
What I think your 7% agent is saying that they will take 3% as the listing agent AND give 4% to the selling brokerage/agent (the person who brings the buyer). The extra 1% to other brokers WILL INDEED generate more showings. If you want to sell soon, go with the 7% agent. If you want to sit and wait, go with the cheapest listing agent. But as they say....you get what you pay for!
0 votes Thank Flag Link Thu Mar 7, 2013
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