Interview a series of agents, and include that question as part of your meeting.
Best answer: ask a few agents, hear their independant numbers and decide for yourself if there's a trend, because there is no "standard" percentage.
In U.S. v. National Association of Real Estate Boards (NAREB), the U.S. Supreme Court held that services provided by a real estate agent are within the definition of "trade," and as a result, the price-fixing of real estate commissions was a per se violation of the Sherman Antitrust Act.
The Washington Real Estate Board, which was located in the District of Columbia, adopted standard rates of commissions for its members. The Board's code of ethics provided that "brokers should maintain the standard rates of commission adopted by the board and no business should be solicited at lower rates." Members agreed to abide by this code; however, departures from the stated rates did not cause the Board to invoke any sanctions. The United States sued the defendants to enjoin them from engaging in price-fixing, a violation of the Sherman Act.
The Supreme Court held that the evidence established that price-fixing had occurred. The Court then determined that the Sherman Act applied to real estate services. In order to fall within the scope of the Act, the services must meet the definition of "trade." The Court stated that the fixing of prices and other unreasonable restraints had been consistently condemned in cases of services as well as goods. In prior Supreme Court decisions, transportation, medical, and hospital services had been held to be "trades" covered by the Act. The Court thus concluded that real estate services met the definition of "trade," and as such, the fixing of real estate commissions violated the Act.
U.S. v. National Association of Real Estate Boards (NAREB), 339 U.S. 485, 70 S. Ct. 711 (1950).
It is a shame that so many agents are ignorant on this subject.
Thanks for trying to shine a light on this with your post.
@ Joanne- you decided to resurrect a 2.5 year old question with an answer that is terrible!
Yes, - inappropriate and terrible.
Well...........In one sentence you state "yes, all commissons are negotiable" then you march along and state what you believe to be the "standard or acceptable"commission!!!
Do you not see the conflict there?
I respectfully suggest you reread Walter's response, along with the reply I left for you.
I then suggest you delete your response as it can readily be seen as an attempt to set/fix prices even if that wasn't your intent.
ps Yes, Jim - I am always amazed when agents either don't bother to read what has been posted before they respond, or worse yet, they read it, and don't understand...... or don't care!
Then you have flat service brokers. They charge you a set amount to sell your house. I have seen $3,995 and I think different amounts.
Check around. Different agencies have different business models and you could save some serious money choosing one over another.
You could also sell it yourself.
The blog below shows how.
If you want to find a realtor perhaps this other blog will be of help.
Please remember that you also have the option of using a RE Broker that offers Rebates....Shop around.
"You get what you pay for" is just a cliche tossed about that is not always true....
"You don't always get what you pay for" is also a cliche but it is one that's true and a fact.
Good luck & become informed
As mentioned below, commission is negotiable however please keep in mind that part of that money is used to market and advertise your property. So definitely don't base your decision on the commission percentage. Kinda like that saying "you get what you pay for." Always be sure to discuss the marketing plan and how the agent plans on getting exposure for your property.
Good Luck to you!
Due to Anti-Trust laws, agents are really not allowed to comment on what may be "customary or usual" as far as commissions are concerned. All commissions are negotiable - there is no industry standard.
I suggest you call a few companies in your area, and speak to several agents - they will be happy to tell you what they will acept as a commission - you may find that the commission does vary, as well as the marketing plans that are offered.
Hopefully, you won't select a realtor based just on the commission, but also take into consideration the experience and marketing plan they bring to the table.
Best of luck........
Prudential NJ Properties