Home Selling in Cheboygan>Question Details

jdamianlapko, Other/Just Looking in Austin, TX

what is the usual commission percentage these days? I'm told 8%? this is for a northern Michigan property

Asked by jdamianlapko, Austin, TX Wed May 21, 2008

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Shop around, but beware...you get what you paid for. What services will your agent provide? Will they Stage your home? How will your house be marketed? Today 80%+ of buyers go to the internet before they talk to an agent. People love to shop in their pajamas. What marketing do they do on the web? Don't forget it takes money to advertise wether it's on the web, newpapers or thru mailings. Agents pay these costs wether or not your home sells, that is if they provide these services to their listings. Properties can be placed on a Multiple List Service, but that is not enough in this competative market. Good Luck.
2 votes Thank Flag Link Wed May 21, 2008
Hmm, lets see ....

At $12,000 the buyers agent would get in and around $6,000...

Or, they could be just like you - they could whine and complain and get nothing.

You sure showed them.!


-
1 vote Thank Flag Link Wed May 21, 2008
Many agents are doing 3 to 4%, and some are doing flat fee sales
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Thinks if he keeps repeating it, it will make it true. I thought it was 2 and 3 percent. And 1 and a half. Remember? We're supposed to be chomping at the bit to split 3%?
1 vote Thank Flag Link Wed May 21, 2008
Jdamianlapko,

Yes, this is true - 8% .... thats only if there is a Piaget watch in the downstairs bathroom and two Omega watches upstairs ... (kidding.!)

Seriously .. shop around - it's all very negotiable, so shop hard and long ...

It's been a long cold hard winter for most realtors, Inman shows they're already in for a 20% fall in sales and income - especially the ones in Michigan ...

Many agents are doing 3 to 4%, and some are doing flat fee sales ..friends in the Detroit area just negotiated a $12,000 fee on their $500,000 home .. it's being done everyday.


Good luck and happy hunting.!


: ^)
1 vote Thank Flag Link Wed May 21, 2008
jdamianlapko, Each area of the Country may have different rates they charge the home seller. And, each Broker (company) will have their own rules for agents. The Department of Justice does not allow agents to provide information on rates (reportedly) for the benefit of consumers. It would be considered collusion.

I encourage you to shop around, but base your selling decision on an agents marketing strategy and net profit for the property. Agents should have a strong internet presence. If you are not happy with agents in the area, contact me, there are two agents in my office that will list homes anywhere in the lower peninsula. They currently have homes in the area.

If you a buying (your profile doesn't indicate) the listing agent will offer compensation in the area Multiple Listing Service to any agent with a buyer.

Feel free to contact me if you have any specific questions, I'll try to point you to the correct answer or choices.
Web Reference: http://mi-living.com
1 vote Thank Flag Link Wed May 21, 2008
It is against the Realtors' code of ethics to make an attempt to set a standard commission percentage. The commission is negotiable but many Brokers have set guidlines for their agents. That is legal. It is also legal for an agent to say "this is what I charge" or "I have found that I need x% to do the things that I feel are necessary to get your home sold for the most money possible".

Having said that, I can tell you that here in central Pennsylvania I have seen rates as high as 8% for homes in the city. Sometimes on a low cost home there is a flat fee paid, rather than a percentage.

The best way to find out what you have to pay in your area is to interview several agents and see what they ask. Just don't be tempted to take the lowest commission without checking to see what services are included. It may be helpful to check some statistics to see how many of the agents listings have been sold, or how the agents original list price compares to their final sold prices.

It all counts when it comes to getting the most money in your pocket at the end of the day.

Eileen's Green Team
Gateway Realty, Inc.
1 vote Thank Flag Link Wed May 21, 2008
Typically there is no usual. It is all negotiated.
Web Reference: http://GetPrequalified.com
1 vote Thank Flag Link Wed May 21, 2008
Hi! I'm an agent in Traverse City. All commissions are negotiable. Here in Northern Michigan the commission on vacant land is typically higher than a home due to the extra advertising that must be done. I've seen vacant land from 6-10% commission. Properties with homes I've seen from 5-7%. However, the amount of the commission should be a reflection of the marketing and advertising the agent will be doing on your behalf.
0 votes Thank Flag Link Sat Dec 26, 2009
I think if you are being "told" 8% is "usual", then you are probably dealing with LAND and not a HOME? Cheboygan is NOT Alaska and I even think the Alaskan agent I've seen on here might even take offense. Contact Gary. He's trustworthy (from my experience with him on here) and ethical. I think Gary was "selling" because he was HINTING that you might be getting taken advantage of. Or maybe 8% is "usual" for a mobile home but not your typical residential home.

Some areas stay pretty firm at 6%, other areas 5% for full service agents. Some superior agents charge a premium and there are also discount agents. So you could expect commission to range from as little as a couple hundred bucks flat fee to even 10% for something requiring excessive time, money for marketing or such a low price just to make it worth the agents time.

According to Steven Cook, a Vice President of the National Association of Realtors in a letter in May 2007, he said, "All real estate commissions are negotiable and the average is 5.1 percent, according to the most recent available data."

I hope that helps.
Ruth
0 votes Thank Flag Link Wed May 21, 2008
Ruthless, Other/Just Looking in 60558
MVP'08
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