Home Selling in Maryland>Question Details

Toni G, Home Seller in Maryland

what is an acceptable broker commission percentage in Maryland?

Asked by Toni G, Maryland Thu Apr 17, 2008

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16
Sorry, there is no standard, normal, usual or regular commission. An acceptable commission is, by definition, one that is proferred by the agent, and "accepted" by you. Agents and agencies charge what the feel their local market will bear, and what they believe their services are worth.

Here is advice to agents on the subject from our local board's website regarding anti-trust guidelines:

At any time, in any place, or under any circumstances, do not have any personal, telephone or e-mail conversations with competitors concerning commissions, fees, charges or any other business practices of your real estate business or those of the firm with which you are associated. This applies at social gatherings, on the golf course, while hunting, in the bar, cocktail parties, board functions and at all times and in all places. At association or board meetings, confine discussions to topics of association or board business directly involved in the purpose of the organization and the meeting.
3 votes Thank Flag Link Sat Jun 28, 2008
Alan May, Real Estate Pro in 60201
MVP'08
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.All the RE agents are looking for sales(not listings) and they is alot of competiton out there.
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I have news for you: homeowners are looking to SELL not LIST also. Or they should be. Listing too high is a waste of time for both.
2 votes Thank Flag Link Thu Jan 8, 2009
If they won't agree to a flat commission, make it hurt if you don't get asking or close to asking price. I suspect that you agent will help you determine the listing price, so hold them to it. I am not talking about the commission going down with the price of the house, I am talking about lowering from 6% to 5% after three months or if you have to drop the price 10%, the realtor has to drop the commission a percentage point.
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Because we all know it's the realtor, not the market, if the house doesn't sell immedidately. Seriously, what makes you think an antagonistic attitude such as that will encourage someone to do their best? Or even WORK for you?
2 votes Thank Flag Link Thu Jul 10, 2008
Agents can charge what the seller is willing to pay. However, If you hire a cut rate broker, you may get cut rate service. Buyers agents are NOT SUPPOSED to look at the about of commission, but they do. So if you are only offering 2 or 1% co-op agent fee, they may not show your house as often as the one down the street that is offering 3-4%. Sellers agent determine how much of their commission they are willing to split with buyers agents. So be sure yours is splitting equally also. In this competitive market you need every "up" you can get and that is one of them.
2 votes Thank Flag Link Thu Jul 10, 2008
Good evening Toni,

Commissions are just like most things in life, they're negotiable .. very negotiable.

Most agents start out with the old: .."we usually charge 7 or 8%, but because I really like you, and, we're running a special spring sale, we can accommodate you with 6%, please sign here.." ..... which I did in fact, hear today - amazing, it never ends.

Take your time and interview 3 or 4 agents in your immediate area ... most agents (and their brokers) haven't really seen a stellar market in the last 4 or 5 months, so most full service realtors are doing 3 and 4% .. if they say no, move on to the next one - just like car dealers.

.... you don't ask, you don't get ...

Good luck and happy hunting.!


: ^)
2 votes Thank Flag Link Thu Apr 17, 2008
Standard comssion is 6%. I know some who will take lower and many that will not take below 7-8%. You pay for what you want. Lower comssions sound good to the seller - but something will be cut. Focus on the marketing skills of your agent. If he/she has a sound marketing strategy - that will be benefical in the long run as compared to paying less to a realtor who may not market as well. The bottom line is YOU. You decide how soon you want the house sold, find an agent that is good at comparable market analysis and has a well defined marketing strategy.
1 vote Thank Flag Link Fri Jun 27, 2008
Toni, what a great question. First let me say that after I interview the Seller, then I will discuss commissions. "?? Interview the Seller ??" ...."I thought is was supposed to be the other way around?". Not in my world of Real Estate. If the Seller is not motivated to sell and realistic about their price based on the market, condition of the property and comparables.....I don't waste my time nor the Seller with discussing anything else...including commission. When I visit a car dealership...I don't ask "What is your commission you are making on the car?" - I want to know about the car, the service department, how long they have been in business, etc. Believe me....if we are a "fit" and you investigate the services I offer...you will have no problem with my commission.
1 vote Thank Flag Link Thu Jun 5, 2008
I like your style and will maybe need your mentorship sometime in the near future.
Flag Wed Nov 14, 2012
Toni,

Sorry that you have to watch the online bantering about commission discussion. Some of the answers are partially correct. The amount charged is negotiable. Since it is negotiable, you will determine what is acceptable. Regarding agents discussing commissions in public, there is nothing wrong with that at all. Agents can not get together and set a commission rate that they all will charge. As a matter of fact, agents don't determine anything. Your agreement will be between you and the broker. The agent just represents the broker.

The best advice is to sit and interview a few agents. Ask friends for referrals of agents that they have had a good experience with in the past. There are no secrets and if you don't get answers, why they can leave through the same door they came in.
Web Reference: http://www.jmacsays.com
1 vote Thank Flag Link Tue Apr 29, 2008
As said before; Realtors are not allowed to answer this in public. When you do speak with an agent a couple of things to ask: What commission do you charge? Of that how much do you keep and how much do you pay the Buyers broker. (It should be at least half). Ask what marketing they will do to sell your property. I would also ask your agent how much buyer agent commission the homes for sale in your neighborhood is offering. That should give you a hint as to what commission you should be offering buyers agents for your home.
1 vote Thank Flag Link Thu Apr 17, 2008
There are agents that will sell your home for 0% commission with full service representation if you are moving to another home within the state of Maryland. Go to http://www.WeSellMarylandHomes4FREE.com to learn all about it.
0 votes Thank Flag Link Fri Nov 11, 2011
He is right! Listing too high is a huge waste of everyone's time. We all think our home is the best and like what we've done to it. But look at it from a buyer's point of view. For every update you have done to your home, there are 10 other homeowners who have made similar updates. To a buyer, your home is one of many from which they can choose. Yes, people will pay more for some things, such as kitchens and bathrooms. But buyers will only pay so much more for these things. Each home has to be priced competitively and appropriately with other similar homes in its community!
Web Reference: http://www.nealgreene.com
0 votes Thank Flag Link Thu Jan 8, 2009
Dropping the commision if the house doesn't sell at full price won't work! A house will sell if it is priced at market value based on CURRENT market conditions, not what it would have sold for a few years ago. A good REALTOR® will give the home maximum exposure, and most of that is on the internet. And most of the work a REALTOR® does is from the time an offer is received up through closing. What is important is paying a FULL COMMISSION, whatever that REALTOR®'s full commission may be. You may feel like you are getting a good deal if you negotiate the REALTOR®'s commission down, but what that does is make the REALTOR® care less about marketing your home. My full commision is 4% for sellers who buy a home through me and 4 1/2% for sellers who don't. The other thing that is important is giving a fair commission to the buyer's agent. I give the buyer's agent 3%. Commissions can't be fixed, but if you give less than most people are giving, it reduces the possibility of your home getting shown.
Web Reference: http://www.nealgreene.com
0 votes Thank Flag Link Tue Jan 6, 2009
I am not areal estate agent so I can tell the truth.Five precent will get you a good agent is this market if you are willing to list your home at a market price and not some pie in the sky sales price.All the RE agents are looking for sales(not listings) and they is alot of competiton out there.Their are also home selling assitance and other listing sevices that are cheaper.
0 votes Thank Flag Link Tue Aug 12, 2008
We are not permitted to discuss commissions in public. Please feel free to give my office a call at 410-744-2100. Advance Realty Group, Inc. is The FULL SERVICE - DISCOUNT EXPERT. I am the Broker and I give you my word!
0 votes Thank Flag Link Fri Jul 25, 2008
Toni - I don't know what the asking price is but I would encourage you to push for a flat commission based on selling price. Forget the percentage, that is a flawed system. If you have a 500k house what more are they going to do for you than a 400k house? Nothing, so why should you pay an extra 6-7k? If they won't agree to a flat commission, make it hurt if you don't get asking or close to asking price. I suspect that you agent will help you determine the listing price, so hold them to it. I am not talking about the commission going down with the price of the house, I am talking about lowering from 6% to 5% after three months or if you have to drop the price 10%, the realtor has to drop the commission a percentage point.
0 votes Thank Flag Link Fri Jun 27, 2008
Toni G. An acceptable commission is what you the Seller will accept. Just remember Cost = Value = Benefits. As the old saying goes, you get what you pay for. Yes, commissions are negotiable, they can be discussed in public and generaly the listing broker will pay the selling broker half of the commission. You should think twice about hiring a full service broker who will do it for 3 or 4% total. In this buyers market, where properties are taking 60-90-120 days to sell it's costing the brokers more than it did 3 years ago. And for any seller who thinks Realtors are not worth 6-% or earn that 6%, should hire an in-experienced agent to do the job and or go through a bad experience. Realtors don't earn their fee listing a house and selling it, a rookie can do that if priced right, Expereinced Realtors earn their money by keeping you and the transaction out of trouble and making sure you close on time. Experience & Success = Value!!
0 votes Thank Flag Link Sat May 24, 2008
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