The best thing you can do as a home seller, is to price your property for this market. That is 15-20% below your closest competition. That will bring in the largest group of potential buyers.

As far as buyer agents are concerned, I always offer buyer agents an additional percentage of commission and take less as the listing agent. The buyer agents bring in the buyers..and that's what we need to sell a property. I don't think any excellent agents will look at commission as a criteria for showing a home. We are out showing property every day that pays a 1-2.5 rate (short sale and foreclosure) in an effort to help our clients get a bargain on a property.

I believe that if you really want to sell your home and fast you should price it lower than others in your same marketing area and ask your realtor to take a commission cut to offf set this some prefer 5%. This will help you and your agent. The home would be sold quicker and you and your agent will come out ahead. Agents have no problems showing homes at 5% if they know their clients will love the home and the price.

Hello Rene and thanks for your question.

There are a few of us, Realtors, who have been reinventing the way homes are bought and sold, and, for me, for example, since I am paid a set amount for each home sold (1 percent to bring a buyer and between $1000 and 1.5% for a listing), I'm not concerned about the commission that is offered to the buying agent.

However, I know that my method of selling--which took a while for my own broker to grasp--is something very new and the majority of Realtors out there ARE very interested in the commission both to represent the seller as well as the buyer.

Personally, I think that the 6% model is dead, and that you'll find, if you were to look, a variety of Realtors who will work very hard for far less and who utilize technology to their benefit in showing homes for sellers. On the other side, however, to entice agents to bring buyers, most of the time, you will have to offer competitive percentages to the buying agent. Depending on the price of the home, that "competitiveness" may even translate into much higher commissions to the selling agent--I just received a flyer about 10 minutes ago from an agent promising the buyer's agent 7 percent on the $1 million home for sale in the area, so you can see how aggressive some sellers are to market their homes to the agents.

If you have agreed to a 6% commission to the agent, make certain that a goodly portion of that money is going to the buyers agent in order to ensure a steady flow of potential buyers to your home!

Sincerely,
Grace Morioka, SRES, e-Pro
Area Pro Realty

Be sure to ask your agent how much of that 6% will go to the buyer's agent. Some companies will keep more than 50% for themselves and give a smaller portion to the buyer's agent. Is that fair? You should know this.
Then, read Katherine's answer again!

As a buyer's agent, I generally don't use commission as a search criteria. However, if there are 20 homes that meet my client's needs (price,size, condition, amenities), all things being equal those offering a reduced commission would be dropped to the bottom of the priority list. Some people want to see every possibility before deciding on a house, but most motivated buyers simply don't have the time or desire to exhaust all options. We may only tour 4 to 5 homes per trip so it is very likely they will find a home they like before they'd ever get to your property if you are number 15 on the list.

Keep in mind that realtors are not paid a dime until the transaction is completed. That 6% does not go to one individual (except in very rare cases of dual agency where the agent is also the broker). Split that 6% in half, then in half again - yes 1.5% is what the actual buyer's agent earns from the transaction. Subtract taxes, gas & other operating expenses, and the net result MAY be 1%. Where is the incentive to promote your home above others if you've cut that little bit in half?

During a slow market, when buyers are few and far between, our opinion is that the fee for professional services needs to be competitive. However, so to does the price of the property.

If the seller can maintain the 6% professional services fee any additional considerations may be best applied to decreasing the selling price. A lower selling price should attract buyers attention...on the other hand, increasing the fee for professional services may attract agent attention.

As a seller, I believe that I would prefer attracting buyers.