National Average is 6 %.....Really?
Let's check with the Department of Justice
"Over the past decade the average commission rate has remained relatively steady between 5.0 and 5.5 percent."....http://www.justice.gov/atr/public/real_estate/save.htm
I would also suggest you read this from the Dept. of Justice...
Competing Models of Real Estate Brokerage ... http://www.justice.gov/atr/public/real_estate/models.htm
In Fact you should read through all the info on the DOJ site, it is concise easy to understand and also includes the causes and results of the DOJ vs NAR lawsuit....http://www.justice.gov/atr/public/real_estate/index.htm
Agents are selling Services and are in competition for your Business, it is your responsibility to be a Smart Shopper. ......It is your Transaction and your Money.
You need to make sure to find out what all is included in that commission so there are not surprises. For instance, I hire professional to come in and do photography, cleaning, Staging, etc. I am willing to negotiate the fees, but need some kind of commitment that the seller isn't going to back out after I put so much money out. In 98107, the market is pretty good and you should be able to negotiate your commission rate based on the ability to generate a faster sale. Don't pay extra for the other items - you shouldn't need to.
Why not have a few agents over and ask them what they would charge you and tell them what you have in mind? We aren't easily allowed to discuss "standard" or "average" commissions for fear of getting slapped with an antitrust suit - plus again because commissions so directly affect our livelihood and ability to make a living it can be a sensitive issue.
Patrick Flynn.."I always get a kick out of the threads that come out of these Q&A's...I think some even answered the question!"
And you answered, contributed what to the Question?
Mack..Hud deciding to pay 6% does not in any way make 6% the Standard rate, do they pay 6% on ALL Hud property for sale Transactions..What do Banks pay?
"As to Dunes comments, I don't think the DOJ suit had much impact on us locally."
I merely mentioned the DOJ/NAR case information is on the site I provided the link for along with a lot of other information....I think
Consumers/the public are intelligent enough to read the info and decide for themselves.
Also condition is important, since some of us include staging in the commission. Rarely does a listing need no help in that regard in this market.
Given the average age of homes in 98107, you may need to reserve something against the home inspection request expectation. Any of us can stop by and give you a quote and a net proceeds sheet showing all of your closing costs.
Instead of wasting a lot of time seeing everyone one at a time...maybe you can have a Broker's Open and invite brokers to come, view the property all at the same time and submit a written proposal. It's a bit out of the box...but might be better than trying to choose one from the limited info we can give you without having seen the "product".
I think 8% for all costs might be a good target range assuming it is a house and not a condo.
This isn't selling electronics where usually the more you pay the higher quality the components you get. Real estate is an industry where the person delivering the service and the system they work under matters a great deal and what you get varies hugely from agent to agent. What you pay shouldn't matter. It all depends on what you think you as the seller will get for your money. Interview different agents, ...ask about what they do and how they do it. Ask them to justify their cost and don't fall for decades old canned-responses.
I would echo someone's comments about focusing too much on cost. A good agent can be cheap and a bad agent expensive. Sort of like cars.
As to Dunes comments, I don't think the DOJ suit had much impact on us locally. Our MLS is a bit different than many others and didn't have many, if any, of the practices that the DOJ complained of. We've had a lot of discount brokers for a long time.
As many have mentioned commissions are not set. The average sales commission is 3% and I believe it is important to offer this to get all showings possible. Listing commissions will vary depending on company and services. As a few have said best to consult with a few agents. What services do they offer for their fees? What are their clients saying about their services? What is their experience? Are they familiar with your marketplace and price range? How will they help you in pricing and showcasing your property? Do they offer staging services at no cost to you and staging materials?
I usually council sellers to budget between 9 & 10% of the listing price for settlement costs. This should cover the commisions, tax, Escrow and Title fees and provide a small contingency for unforseen items.
If you need to stage the home or make any improvements to establish a marketing advantage, the costs will rise from there.
Your Realtor will also be able to give you with a net-proceeds report on any offer amount that you entertain. As the numbers become more defined, the contingency should disappear.
I have suggested in past posts, and will continue to suggest in the future, that as a seller, you Google every agent that responds to your question here on Trulia, learn as much as you can about who they are online, read their client testimonials, so you know what their clients are saying about them, and then give us each a call and just ask us why we think you should work with us instead of another agent. Then, pick the best fit for you and let them go to work for you with the skill and knowledge that they have so that you can net the most amount of money possible for your home. I hope to hear from you soon.
NWG Real Estate LLC