John,

Depending on the location and individual situation the fee for professional service range is generally 6-8 percent of the sale price with the vast majority currently at 6%.

We would like to add that this is not the time to consider going into a real estate transaction without professional support. A skilled and knowlegible agent can potentially save you in many respects.

Good luck

In a sense, this question is like asking what the average or fair price for a burger at McDonald's, a gallon/liter of gas, a ream of paper, a heart surgery, or the salary of a US Representative should be in light of current market conditions.

I'm not an agent, but I'm a consultant, and I've been asked numerous times to justify my rate. This reminds me of an anecdote that Robert Allen shared (on page 46 of Multiple Streams of Income):
"A machine in a factory broke down and an expert was called in to fix it. He took a few minutes to assess
the problem, took out his hammer, and tapped twice. The machine started up again immediately. He
turned to the supervisor and said, 'That'll be $500 please.' The supervisor, furious with such a high bill
for so little work, demanded an itemized statement. The bill arrived the next day. It read as follows:
Tapping with a hammer: $ 1.00
Knowing where to tap: $499.00
Total: $500.00"
The point is that the cost is simply the cost, and it's just as futile to ask an expert to justify his/her rate as it would be for you to try to get someone at Wendy's to justify the price of each item on the menu.

John
Don't confuse a percentage commission to net dollar profit or loss. You get what you pay for, even in this market. Particularly in this market, you need the best brains you can find to maximize your sale price.

Interview three Realtors and compare their proposals.

John,

It is a violation of federal anti-trust laws for agents to discuss commissions in terms of a percentage as being, "average," or, "normal." It is unfortunate how many people don't know the law and are doing this here...

What if you can sign a contract for a 6% commission where you live, John?
How does it matter to you what a California agent is willing to do?... in
dollars or dollares?

They do reiterate something I already said, buyer's agents do take note of the commission offered to them.
Don't offer less than others in your market are offering. Do the same or better depending on how quickly
you want to sell.

My advice is still best. By speaking to several local agents, you'll get your
best answers to this question.

Marita Topmiller

Good question!

It depends on your overall market strategy and how agressive you want to be to get your home sold for the most $$$$. It is our experience that 7% commision, split 50-50 to both the buyer's and seller's agent's, generates the most showings - faster, resulting in more and better offers within the first 21 days on market. Alternatively, a commision less than 3 percent generates the least amount of showings and no offers as there is too much inventory for agents to show; therefore, low commissions results in less showings and no offers.

Our team would be happy to detail the selling strategy for you. Please contact me via our website.

To your success and top dollare for your home!
Lisa Vomer Inouye
ZBest Team in Real Estate
Keller Williams Realty
San Diego County, CA

Hi John,

If you are a seller, interview several local agents and find out how much
they suggest you pay them for their services. That number is negotiable.
Some agents will offer a rebate to the seller, but be careful. You won't really save money if you are getting
poor service. The same consideration is true of Limited Service Clients. Most Realtors hate working with the seller. Things can get messy and emotional. The best agents work full time and employ the services of a staff to ensure that details don't get overlooked. That's not cheap. Also, your agent will have to split his/her commission with the agent who brings a buyer. A smart Realtor will want your home to sell first. If 20 homes are available in your market place and statistics show that only 10 will sell this year, your Realtor will want to offer the buyers' agent enough of a commission incentive to show your home first. Bonus offers, as Maureen stated, are also effective tools that your agent will advertise to cooperating brokers, but which will
come out of your proceeds at closing.

And remember to look carefully at the comps shown you by the agents you interview. Price is King. Price
your home competitively to sell within the time frame you want. Amenities and criteria such as number of bedrooms, baths, condition being equal, agents shop price for their clients first, then they look at their own compensation.

You are more likely to get a discount from a good listing realtor, if you sign a buyers' agency contract with him/her that assures that agent he'll make money when you purchase your new home. So, if you are going to purchase another home, be sure to mention that to the agents you interview.

As a buyer, remember this:
Your agent will not charge you a dime for working for your best interests, because in most markets/ if not all,
the seller pays the total commission out of the proceeds from the sale of his home. It is set up this way
because buyers are paying downpayment, closing costs, mortgage title and costs to furnish/paint/update their new home.

So, start by asking friends if they have any Realtors to recommend. Look for brokerage signs in your area
to see what brokers are active and call them to set up interviews.

You won't find any broker who will tell you what an average commission would be, because the Feds view
that as price fixing and it is illegal. You will find similarites in rates that local brokers offer you, however, because the costs of carrying a listing in each area are similar, as are the expenditures of operating a successful business.

I hope this information helps you to determine which broker to hire.

Marita Topmiller
Assoc Broker/ Realtor
317-513-4652

Hi John, I am not sure I understand exactly what you mean with average, then fair and then especially now?

a) commissions are negotiable and although as Realtors we cannot state by law any fair or average or anything as far as it comes to commissions in one area or city or state I am assuming that Sellers though talk to other sellers within their circle of friends, neighbors and co-workers and family members and therefore have some idea what everyone else paid to their listing brokerage!

With that said, now you know discuss it with your listing agent and find out what the services are that are included. Usually like with everything else in life you get what you pay for!!!!!

b) Now I would like to address 'especially now', I want to assume that you are thinking that because the market and the economy are the way they are that YOU the seller should be able to "save" on the commission. Am I wrong?

Well, to that I would like to say that because of the economy and the real estate market, now more than ever YOU will need a very good listing agent and good brokerage company he or she is associated with to get your property in front of the realtor community and the buying public...... but "especially now" goes for both sides, the Realtor NOW most likely will have to work for each listing many more months, more efforts, more advertising, more marketing, more open houses, lots more of his/her time, effort and expertise, and if based on more expenses, more time devoted and more advertising and marketing the Realtor should get a higher commission NOW than before. Does that make sense to you?

Do NOT forget that a good part of the commission that YOU pay as the seller, gets split up between the brokerage company that you list with and the brokerage company the buyers agent comes from who brings in the buyer. Then each agents has his or her specific split with his or her brokerage company.....

But it is negotiable, so talk with your listing agent and compare commission to the various services that agent and his /her brokerage company provide to you to market your property in this very difficult market!
Good Luck to you!
Edith edithsellshomes@gmail.com

John,

I used to live in Jackson, know many good agents there, and my father owns a real estate firm in Jackson. If you would like to email me at Derek@DoorToDreams.com, contact me through my Trulia profile, or phone me at 734.678.4745, I would be more than happy to get you in-contact with someone you can at least interview and compare to whomever else you will be speaking with.

I have no idea what average is. Commissions are negotiable and vary, usually based upon the services offered. In my market I have been seeing commissions rising as more sellers offer bonuses to get their homes sold. Banks are doing this commonly and so are individual sellers.

This topic is certain to get lots of comments.

Ask questions and find out what you are paying for when you chose an agent. Get referrals from people you trust and interview a couple of agents before you make a choice. There is a whole spectrum of services an agent can offer. In the end, your goal is to get the most you can for the house, in the least amount of time. A good agent will earn every dime and more that you pay them, and you will net more in the end with the right match.

If you would like me to refer someone to you, feel free to drop me a note through my trulia contact button.

Maureen Francis
SKBK Sotheby's