Home Selling in 62220>Question Details

Cherylannlaw…, Home Buyer in Palmdale, CA

what is the standard commission rate that the seller pays when selling their home and is this rate negotiable?

Asked by Cherylannlawless, Palmdale, CA Fri Dec 16, 2011

How do I find a realtor that specializes in selling older homes?

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14
Here's a straight answer. In our firm, we charge from 6-10%, depending upon how the seller wants us to work and how he wants us to compete. Most choose the 6% rate, not surprising. That is the rate I hear most often quoted by competitors, though it varies. If I sold the property to them, I charge 5%, figuring that I made money the first time and don't have to do well the second time. Ask me to take less than 5% and I'll say, "Let's look for another buyer who will pay more." But I am not selling high priced million-dollar stuff nor do I get sales every day and can make it up on volume.
1 vote Thank Flag Link Fri Dec 16, 2011
Hi Cherylannlawless,

All commission rates are variable. Some companies enforce a certain percentage while other companies allow agents to decide what they will charge. Interview agents to see who will be the best fit for you and tour family.

Remember, the lowest rate does not always mean the highest quality. Always ask what you are paying for and how your money will be spent.
0 votes Thank Flag Link Thu May 16, 2013
Yes all commissions are negotiable. Interview several brokers.
0 votes Thank Flag Link Sun Jan 15, 2012
5%
I know a broker specialized in vintage homes.
Let me if you are still looking .
Web Reference: http://kkyan.com
0 votes Thank Flag Link Sun Jan 15, 2012
"But you are getting the lowest service as well"...........

I take issue with that statement, and I think making sweeping generaizations like that does a disservice to the consumer. Just because someone is paying a higher commission rate doesn't necessarily mean they are getting top notch service......I have seen sellers not "get what they paid for"!

What Chery needs to do is ASK for a WRITTEN marketing plan, then compare and contrast what each agent will be doing on her behalf.
Yes, Cheryl, commissions are negotiable.
However, I think it's fair to say...........whether high or low, the commisson should not be the determing factor.

I also would be wary of buying into "stats" that give exact percentages of what may or may not happen if you list versus sell on your own.
Suffice it to say that as agents, we think your best choice is to allow us to market your home - especially in today's challenging market !

Become an informed consumer...then you can make an informed decision.

Good luck!
0 votes Thank Flag Link Sat Jan 14, 2012
All of these answers are correct. it is easy to say" I will go with the lowest Commissioned agent". But you are getting the lowest service as well. There is a reason some are higher than others. Find an agent that will look out for your best interest and go from there. On an average, you will sell your home for 8% MORE by going with a REALTOR than if you were doing it yourself. You can use that as a guide.
Here is a link to a blog that may help. Good Luck !
0 votes Thank Flag Link Sat Jan 14, 2012
Cheryl, it is illegal for an agent to discuss an average local commission or their competitors (so those who did so below, should not have). Now, those that are telling you their commissions are simply telling you what they would charge.

My advice, interview 2-4 agents you feel are good agents. Allow them to tell you their commission rates, what they will do for tht rate, etc. There are agents who will do very little, and thus charge a very low commission. Ther are also agents that are full service and with them, the sky is the limit for the service they can offer. It all depends on what you are willing to pay to have your home sold.
0 votes Thank Flag Link Sat Dec 17, 2011
ps

in regard to finding an agent who specializes in selling older homes....imo......you really just need an agent with a track record in your specific area.......any good marketing plan will cover all styles of homes.

When you interview the agents, you can lways ask if they have any special marketing ideas for an older home,

BTW -- By older, are you referencing an historical home?
Is an older home not in keeping with the majority of other home styles in your area?
0 votes Thank Flag Link Sat Dec 17, 2011
" Realtors are afraid to reveal average commission rates on forums like these because they are afraid of violating anti trust laws."

Just to clarify - this has nothing to do with "getting a straight answer".....and its not that agents are "afraid" to violate a law - it's that they are intelligent enough to know better than to violate the law!

Unfortunately, not all agents are as well infomred as they should be, so they go right ahead and answer questions like ths one.............just a sugestion for those agents - they might want to call up their state's Real Estate Commission to verfiy that discussing commissions in a public forum IS against the anti trust laws.......maybe even their Managing Brokers can fill them in.

Commission discussions can have the effect of price fxing , even if the intent wasn't therem, and that IS against the law.
Telling you what one thinks "others are charging" or that 1 commission is the "going rate"... "usual or customary" is so wrong!

Cheryl............The only correct/proper answer by an agent to this kind of question is........commissons are negotiable.....speak to a local agent and let him or her discuss their specific marketing plan and commission structure..

Best wishes.............
0 votes Thank Flag Link Sat Dec 17, 2011
Cherylannlawless,
Each agent or company sets their own commision rates. Some offer flexible terms, others are set. Lower rates do not necessarily mean a better deal and higher rates do not necessarily mean better service.
My consistent suggestion here has been to focus on finding the best available agent to represent you, if their rate is less than others, all the better. Putting fees first only guarantees you may eliminate some excellent agents who may net you a higher bottom line, which is the only number that really matters in the end.
0 votes Thank Flag Link Fri Dec 16, 2011
Cheryl,

The rates are always negotiable however if you are negotiating with an agent and their best tactic is dropping their price prior to even securing a deal you might want to ask yourself what will happen when they are negotiating with your money. You want to find a good Agent that's honest , hard working and you feel you have a good relationship with. By finding someone like this they will be worth the money you are paying them. Good luck!
0 votes Thank Flag Link Fri Dec 16, 2011
Commissions are always negotiable betwwen you and your agent, there are no set standards as it would go against Federal Laws. Therefore interview in person a few local agents from different realty companies, then choose the one you like best and who has the most to offer; choose your agent with care.
0 votes Thank Flag Link Fri Dec 16, 2011
Cheryl- you will be lucky to get a straight answer on this forum. Realtors are afraid to reveal average commission rates on forums like these because they are afraid of violating anti trust laws.
0 votes Thank Flag Link Fri Dec 16, 2011
The commission is always negotiable, but remember, you get what you pay for just like with any other service or product. Cheaper is not always better.
0 votes Thank Flag Link Fri Dec 16, 2011
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