Tblu, Both Buyer and Seller in 94115

what is standard commission for an agent selling your home? We live in San Francisco.

Asked by Tblu, 94115 Sat Aug 30, 2008

we've been quoted 5% of sales price (which would be close to $1 million) which seems very high to us, is it?

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Answers

9
Tblu, Any conversations regarding commission between agents is strictly verbotten! These agents should understand this.
1 vote Thank Flag Link Sun Aug 31, 2008
Tblu,
The brokerage fee (commission) that you negotiate with the lisitng agent is part of the listing agreement contract. The wording in the contract explains what portion is to be kept by the listing brokerage and what portion is to be paid to the selliing brokerage.
The percentage figure is the total you will pay out of the proceeds of the sale. Remember that it is the buyer's money that you are using to pay the fee. There is a common misconception that it's the seller alone that pays the commission evne though it is the buyer that brings all the money to the table.
1 vote Thank Flag Link Sun Aug 31, 2008
Jed Lane; Fog…, Real Estate Pro in San Francisco, CA
MVP'08
Contact
All commissions are negotiable in California, but just to make sure your mathy is right, if as you say 5% is $1M than the price of your home would be around $20M. Not that I doubt you, but usually owners of $20M homes have bought and sold quite a few properties, and are familiar with the process of negotiating commissions.
Somewhere between 6% and 5% is the average commission in the Bay Area, but as I said, all commissions are negotiable.
1 vote Thank Flag Link Sat Aug 30, 2008
Redfin 1.5% to sellers agent.
0 votes Thank Flag Link Sun Apr 22, 2012
6% is typical for commercial real estate. Residential is usually negotiated, but 3% would be more reasonable. Most brokers/agents have a tiered approach, so for example on a $20MM property, they may quote 5% for first $1-2MM plus basis point percentages on any remainder.

e.g. $20MM home may be reasonable to expect commission: ($2MM x 0.5) + ($18MM x 0.005) = $190K.

Of course you always get what you pay for, so again negotiate the best deal with the best broker/agent.
0 votes Thank Flag Link Wed Apr 18, 2012
There is no standard commission for the sale of a property in any state! Ask any broker that you are considering what the office policy is on commissions. There may be an office policy on commssion that they will have in the sale of property but there is no collaboration between brokers in your area of San Francisco on a standard commission rate. Any action as stated would be against the anti-trust law. When dealing with commission(marketing fee) one will want to really see what the broker has to bring to the sale of your property, do they deal with your price range and/or can they bring about the results that you want with the methods that the will use. The fact of the matter is that the broker may not bring the specific buyer that will purchase your property but you want his or her work to be the reason for the sale of your property. Good luck with getting that broker. Feel free to contact me if you still need additional information.
0 votes Thank Flag Link Thu Sep 18, 2008
T
One of the factors that is misunderstood in residential real estate is that when you put your home on the market you are entering a competition with others trying to sell their homes. The real estate market appears different than other markets, like the stock market, because there are so many variables that except in tract developments every home is different.

Your Realtor's job is to expose the value in your home to the market. Two different Realtors can market different features of the same home are create two different pictures of the home's value to buyers. So when interviewing agents it is important to hire the agent that you think understands what your home brings to the market.

I marketed a home once and the sellers said that the home was larger than the County Assessor said, so to verify we had it professionally measured. at $400 a square foot, we just increased the value by $80,000, that persuaded the sellers that I was the Realtor best suited to sell their home.

So not all Realtors are created equal. Interview three and compare, then select the best one. So it is not how much commission they charge, it is how much money you put into your pocket at the close of escrow.
0 votes Thank Flag Link Sun Aug 31, 2008
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
Oh sorry - I meant $1 million would be the listing price... You are right, we never sold before, but were under the impression that the 6% commission was divided between the buying and selling agents... as long as this is total, I suppose this makes sense.
0 votes Thank Flag Link Sat Aug 30, 2008
Dear Tblu,

5% is the going rate for most all properties these days. When I first started 19 years ago, it was generally 6%. All commissions are negotiable and if you have an agent who is helping you buy and sell, you should negotiate a deal on that agent's commission. As with Eric, I think you may have missplaced a percentage point when factoring the commission.

Good luck,
Sally
0 votes Thank Flag Link Sat Aug 30, 2008
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