Home Selling in Lowell>Question Details

Eszy685, Home Seller in Lowell, MA

what is the average comission rate for a realtor?

Asked by Eszy685, Lowell, MA Thu Aug 20, 2009

want to find a realtor who will sell my condo without taking too much comission as the market is so low.

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Rates are set by each firm individually in accordance with the services they deliver to the sellers. Any talk of commission rates between brokers is an anti-trust violation and should never be done. If you are interviewing agents to list your home, compare what their specific marketing plan is to the rate they charge and make your own decision about it. Cheap isn't always the most cost effective; esposure of your property is and that costs money.
1 vote Thank Flag Link Thu Aug 20, 2009
It would be hard to come up with an "average". Each broker sets his/her own rate. Your best bet is to interview a few agents, ask what they charge and what you would get for that rate. Depending on how much you are willing to do yourself, you might be able to get a better rate.

You can find someone to list for a low commission rate, but you may end up with less if the agent isn't doing much to generate interest in your home and you get low offers. In this economy, it takes lot more work to sell a property, which means more hours and investment on the part of an agent. Some banks with foreclosures and relo companies are offering higher rates to get agents to show their properties. So that's some of your competition.

Sorry, no easy answers, but good luck!
Web Reference: http://homes.debn.net
1 vote Thank Flag Link Thu Aug 20, 2009
Total commision can range from 4 to 6 percent! Unless its bank owned then the rate is approved by the bank. If its 4% remember that usually 1/2 goes to the buyers agent if any!
0 votes Thank Flag Link Fri Aug 21, 2009
I'd have to agree with Deb, you should interview several and see what the difference is. Whether it's an up market or a down market, everyone wants to pay as little as possible. Alot will depend on your property, the condition, the price and what it is up against for competition and what has sold recently in your area that's similar.

I like to use cars as an example, it's the same reason there are Toyota Corollas and there are Rolls Royce Phantom Ghosts manufactured. Everyone has a level of comfort & ability when it comes to real estate sales & purchases. Perhaps you don't need all the extras of a Rolls Royce but more than the Toyota, they're both fine cars and serve their purpose wonderfully. Perhaps you'd feel comfortable someplace in between.


There are alot of different agents/brokers/offices out there to give you different levels of service for different commission rates. Interviewing several all along the spectrum will give you an idea of what you might be interested in and comfortable with.


Good Luc, hope that helps,
0 votes Thank Flag Link Thu Aug 20, 2009
Maybe you'd like to check these out..

Table 1: U.S. Annual Figures of Commissions Paid to Real Estate Agents & Brokers

Average
Homes Sold By Sales Commission Commission Total
Year Sold(+) Brokers(*) Price(+) Rate Per Home Commissions
2000 5,174,000 3,880,500 $178,500 5.42% $9,675 $37.5 Billion
2001 5,336,000 4,002,000 $188,300 5.12% $9,640 $38.6 Billion
2002 5,631,000 4,223,250 $206,100 5.14% $10,600 $44.8 Billion
2003 6,178,000 4,633,500 $222,200 5.12% $11,370 $52.7 Billion
2004 6,778,000 5,083,500 $244,400 5.08% $12,400 $63.0 Billion
2005 7,076,000 5,307,000 $266,600 5.02% $13,380 $71.0 Billion
2006 6,478,000 4,858,500 $268,200 5.18% $13,890 $67.5 Billion
2007 5,652,000 4,239,000 $266,000 5.18% $13,780 $58.4 Billion
2008 4,912,000 3,684,000 $243,100 5.20% $12,600 $46.4 Billion


Keys:
(+) Source is the National Association of Realtors
(*) Figures calculated on a 75% market share for non-discounted real estate agents & brokers.


Table 2: 2008 Average Sales Price & Commission Paid by Region

Average Sales Commission
Region Price(+) Per Home
Northeast $297,900 $15,500
Midwest $183,400 $9,540
South $212,400 $11,050
West $312,100 $16,230


Keys:
(+) Source is the National Association of Realtors
0 votes Thank Flag Link Thu Aug 20, 2009
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