Germaine, Home Seller in Georgia

what's the average percentage rate a realtor charge these days to sell?

Asked by Germaine, Georgia Mon Sep 21, 2009

Help the community by answering this question:

Answers

87
John, I recognize that we disagree, and that's okay with me.

I believe I've been civil and pleasant to you, I would great appreciate it, if in your disagreement with me you could keep it pleasant and desist with the sniping. If you feel I'm wrong... I can live with that...

but comments like
"how does it feel to have egg on your face?"
and "you need an adult in your life" are rude and unnecessary.

Can we, as real estate professionals at least agree on that?
4 votes Thank Flag Link Tue Sep 22, 2009
Alan May, Real Estate Pro in Evanston, IL
MVP'08
Contact
"The law also allows that competitor to engage in competitive advertising, in which the company explicitly compares its stated commission rate to the rates publicly promoted or advertised by other firms, provided that the advertising was truthful and not misleading. In fact, the policy underlying antitrust laws — promotion of vigorous and healthy competition — would tend to favor and encourage such comparative advertising since it helps consumers easily compare and contrast prices offered by various companies"
..............................................................
John, I didn't have to reread the sentence. I am sure Alan didn't, either.
The law allows a company to advertise it's commission fee - no one has questioned that.........there was a now-defunct company called Foxtons that made a big deal out of prominently advertising its low fee, and even put it on their signs. All was perfectly legal. That has nothing to do with agents having a discussion among themselves or on the internet.

Nor does the law force you to negotiate YOUR fee.........you are twising words if that's what you were implying............negotiable means that there is no set fee that the INDUSTRY sets....it means that the consumer may discuss and negotiate fees, as there are no set fees industry-wide......individual companies or agents may set their own fees; that's their prerogative...................you can't really be interpreting the meaning to be that you MUST negotiate YOUR fee, now can you John? Maybe you just like to be dramatic.

And by the way,..I got 100% on the quiz, too.....(big deal).
3 votes Thank Flag Link Wed Dec 2, 2009
Dunes, I will simply say, "I concur"

My personal mantra is......when in doubt, don't - especially on the internet.

I think many agents jump in, and discuss the commission question out of ignorance of the law......many out of arrogance, thinking they understand the law, and their view is the correct one..........many may just be confused, so they think, what the heck...........
Once I was reminded, (here on Trulia), of the anti-trust laws....even if some ambiguity exists about what may or may not be proper to discuss, I now prefer to err on the side of caution.....hence .... when in doubt. don't.
3 votes Thank Flag Link Wed Dec 2, 2009
Teddy says: "Commissions are negotiable but in Florida it is customary to give a 6%."

This is exactly what we've been talking about. Commission are negotiable, and there is no "customary" fee, in Florida or any other state... period. There is no standard, usual, norm or regular fee either. There is simply... "fees are negotiable". Period.

to say that there is a customary fee is a violation of the Sherman Anti Trust Act.
3 votes Thank Flag Link Wed Dec 2, 2009
Alan May, Real Estate Pro in Evanston, IL
MVP'08
Contact
John, I have no intention of jousting with you, and won't be treated like a 1st year rookie.

Yes, I was referring to the Sherman Anti Trust laws, I simply called it national because you seemed to feel it applied either solely to New Jersey or Florida.

and with that, John. You and I are done.
3 votes Thank Flag Link Tue Sep 22, 2009
Alan May, Real Estate Pro in Evanston, IL
MVP'08
Contact
Sorry, John.

Debbie's quote is about National Anti-trust law.
3 votes Thank Flag Link Tue Sep 22, 2009
Alan May, Real Estate Pro in Evanston, IL
MVP'08
Contact
John...

I have no egg on my face... I stick by my statement. If you'd like to quote 'averages' you go right ahead, but Debbie's quote:

"Agents and brokers in any setting, business or social, should take great care to never even discuss commission rates in any context. It's much better to be safe than sorry in this case."

was correct. Okay, the 'throwing of the drink' may be slightly overboard, to make a point.. but I'm not going to discuss 'assault' with you. Feel free to quote averages, feel free to quote NAR... I prefer to stay on the safe side, and do what my managing broker and my board have directed.

You feel free to "dance with the devil". I'll pass on that drink.
3 votes Thank Flag Link Tue Sep 22, 2009
Alan May, Real Estate Pro in Evanston, IL
MVP'08
Contact
If someone was building a case (perhaps an attorney's opinion?) I would think the internet would be an awful good tool in many cases.

Would they build a case? They did a few years ago....In this economy, time of mistrust, blame, who caused what, it is my very strong opinion that YES if they felt it made them look good (Let's be real), on the job, protecting the public, someone to blame for something whatever....Yes there is a possibility.

And the Brokers are responsible for the action of and all are members of NAR and all of a sudden
DOJ vs NAR....The question to be asked is not is it inevitable but is there any possibility at all especially remembering "The appearence of"

This may be the Best Investment any Agent can make....http://www.realtor.org/prodser.nsf/products/126-1093?OpenDocument

What other issue do Realtors face that can have such a huge impact on their Profession by the actions of just some?

In a Forum such as this does several Agents in a thread stating our anything (standard, usual, customary, average ect) commission is ....constitute "The appearance of"?

The final decision on that is not yours.....The final decision is going to be made by the enforcers and the courts....Are you sure you are right? Would it not be more wise to just avoid the Possibility?

ALL COMMISSIONS ARE NEGOTIABLE ..What's so hard about that? They call you up and then you say (For my Services I ........) That's the beginning or end of negotiation and very acceptable...I expect X% whatever...

Why is that so difficult? No Risk and the absolute "Appearance of" compliance with the Anti-Trust issue...A good thing, you could even PR the heck out of WE FOLLOW THE RULES......

Just my opinion, Dunes
2 votes Thank Flag Link Wed Dec 2, 2009
George,
Can you post a link to those NAR stats that shows it costs the average FSBO 21% to sell their home.
2 votes Thank Flag Link Wed Dec 2, 2009
Alan.......bravo for once again trying to explain the concept that " commissions are negotiable, and there isn't a customary or usual" commission............... it isn't proper or legal to discuss it...especially in a public forum, where once you say something, it is out there forever in the interet world.

I have just about given up trying to "splain it" to the masses anymore..........

ps - read your blog on Active Rain on this very subject....might be a good idea to link to it for those who continue to argue the point, or don't get the point all together
2 votes Thank Flag Link Wed Dec 2, 2009
What is wrong with telling the public what the going rate is?

~~~~~~~~~~~~~

Maybe the atty general of Florida can tell you? :)
2 votes Thank Flag Link Tue Oct 27, 2009
The question is a fair question to ask, however, I think that this is a private conversation between a broker and a buyer or seller. This is an open forum and I think that this is where people get a little nervous and rightly so.

In real estate "price fixing" occurs when competing brokers agree to set sales commissions, fees or management rates. Brokers must independently determine commission rates or fees only for their firms.

Although this is not what the topic is here exactly, brokers and agents should take caution when answering this question in a public forum. They must be careful not to imply any price fixing by saying things such as "the normal rate" or "commonly" or anything that would insinuate a set rate. They must make it clear that this is what their office charges and not a set rate.

It is strongly suggested by many real estate organizations that this subject not be discussed in an open forum.
2 votes Thank Flag Link Wed Sep 23, 2009
Hello Germaine and everyone....

Finally had a chance to read ALL of the responses on this thread, and I am surprised--as I always am--of the responses to a fairly simple question. Asking the "average percentage rate" that a Realtor charges is certainly legitimate, and I see no problems in mentioning that the range can be as low a 1% and as high as 8% depending on the business plan, services provided, etc. I see no intent or spirit to break laws, whatsoever, in the dissemination of this information, which is the answer to Germaine's relevant question. Anti-trust laws (Sherman, Clayton, Robinson-Pattman, Keller-Cevaller, Hart, etc.--there have been more than just a few amendments to the Sherman Act) are all intended to prevent price fixing, monopolies, restraint of trade, mergers that overwhelm the market, etc. Simply telling someone the range is not, in my humble and unlegal opinion, price fixing.

Further, I think its bit of a stretch to say that all discussions involving commission are intended to or can be construed as price fixing. For example, does just "reading" the NAR report about the "average commissions charged" create an environment intended to violate anti-trust laws--should we all now be charging 5.08% commissions (personally, my new commission will be equal to Pi or 3.14162547...). Probably not, and, frankly, the information is fascinating and shows the direction of real estate to the average reader. Yes, we should not all be agreeing to a specific "commission rate" when we talk (the intention of which is to create a uniform price), but then again, isn't that sort of what larger national real estate firms are doing since they seldom waiver from their commission fee. Yes, they say the price is negotiable, but I would defy you to find a broker in one of these national chains willing to actually negotiate the commission below their narrow window of "acceptable" fees.

So, while I would prefer that conversations of disagreement on any Trulia post be kept civil and professional, I think that the question asked by Germaine is reasonable, and I think that the answers involving providing her with some hard figures are also certainly reasonable. We're certainly not price fixing, and, again, I think a range with explanations does not violate either the spirit or intent of any of the anti-trust laws or their subsequent Acts.

But, of course, I'm no legal expert...just a Realtor from California. Thanks again, Germaine, for the question and to all of my colleagues who responded. You've certainly given me a lot ot think about!

Sincerely,
Grace Morioka, SRES, e-Pro
Area Pro Realty
2 votes Thank Flag Link Wed Sep 23, 2009
Good now we have a polite thread that makes no sense and everybody that had hurt feelings can celebrate victory...

The Forum that helps Consumers see Agents as they really are or as they behave as individuals will have an accurate picture to view....Are the comments removed because they are insults or to protect the image of Agents as a group or individually with the Public?

Are Consumers incapable of judging for themselves?
2 votes Thank Flag Link Wed Sep 23, 2009
Uh, dude, what part of my post suggested that I suggested you did? I was adding my own suggestion to your suggestions. :)

(Waiting for my thumbs up for my suggestion)
------------------------------------------------------------------------------------------------------------------------------------------

Uh DudesstDudgest/Not Dude ... nevermind

My answer was perfect and already contained whatever you thought you should add ; )

(Waiting for my Thumbs up for counter-suggesting your suggestion that my comment needed a suggestion)
Yea that's the ticket!

Fine here's your Thumbs up
2 votes Thank Flag Link Wed Sep 23, 2009
John: "Debbie quotes someone she went to class- hello what is the difference between
DOJ and some one Debbie sat in class with "...........

John for some unknown reason you like to engage and do battle, adn we have met before on other threads. I have tried to be polite, and will continue to do so.

For the record, I'm not 5 years old, going to class and then quoting what the teacher said.....I didn't "go to class"...I studied this subject, discussed it with the CEO of my company, my manager and others higher up in the world of real estate......In reading about thet issue, I found that quote, among many others, that pertain to the Sherman anti trust laws. They apply to all of us, not just in NJ.

I agree to disagree with you, and I won't be drawn into this discussion any further. As I said - it's your prerogative.......chat it up, state all the average commissions you care to talk about...I really doesn't concern me. Others, however, might care about what they say, especially, in a public forum.

Best wishes...........
2 votes Thank Flag Link Tue Sep 22, 2009
This is from an Antitrust ruling case in Arkansas:

"Arkansas real estate professionals should be extremely cautious to never discuss with other brokers, in any setting, commissions which they are charging to their buyer or seller clients."

I would say that "any setting" applies here.

Alan please remove the stir straw before throwing the drink!
2 votes Thank Flag Link Tue Sep 22, 2009
Alan..............I like the "throw the drink in the face of someone " part..........So, maybe next time I am at a party, and someone says something, anything, I don't like, I will just shout ........"What? You're discussing COMMISSIONS? How dare you!!!"...........................then, .throw my drink and run fast before they can catch me!
2 votes Thank Flag Link Tue Sep 22, 2009
Debbie, the question of discussing commissions in public or amongst Realtors came up with the president of our local board. She said that she was advised as follows:

"If you're at a public event, and the subject of commissions comes up, you should stand up and loudly state 'This is an illegal discussion, and it should stop!'. If that has no effect, and the conversation returns to commissions, you should stand up, throw your drink in the face of a person at your table.... and walk out of the room."

I asked her why she had to throw the drink in a person's face, and she replied "That's so that nobody in the room will FORGET that she stood up and left the room, and did not partake in the discussion". (just in case it should come up in front of a board hearing!)
2 votes Thank Flag Link Tue Sep 22, 2009
Alan May, Real Estate Pro in Evanston, IL
MVP'08
Contact
Sherman anti-trust laws prevent us from discussing average, standard, normal, usual or an other type of commission, in a public forum, or even amongst groups of Realtors.

It could be construed as an attempt to fix prices.

And while, yes, there probably is an actuarial table of "averages" for areas, the rates charged are NOT public record. Those commissions agreed upon between sellers and listing agencies are private, the only part that's public record is the cooperative commission paid out to the buyer's agency.

Since we are not privy to all of the private commissions, we can't build an "average". Sorry.
2 votes Thank Flag Link Tue Sep 22, 2009
Alan May, Real Estate Pro in Evanston, IL
MVP'08
Contact
Germaine,

From our perspective....of greater concern than the fee for professional services is the program that a company and agent can provide for the seller.

Our recommendation is to meet with several agents of your choice and request a written comprehensive marketing plan for your specific property. This should acquaint you with the differences in the level of service and clarify your options.

Full service agencies tend to get the job done faster and sell for higher prices...don't short change yourself with anything less than "full Service."
2 votes Thank Flag Link Tue Sep 22, 2009
Yes there is an average- just because the rates we charge is public record - I really don't see why Debbie
can't find an average -

Each location has a norm- and as Debbie says your local Realtor can tell you what it is

Anti Trust Laws might suggest we talk about these rates to the public- in my area
the rate is about 6% give or take 2% for various reasons - to a high of 10% and a low of about 1%
there might be reasons to go high or low- trick to you is to find someone to get the job done.

John
2 votes Thank Flag Link Tue Sep 22, 2009
One has to be very careful with statements like "there is a standard fee for selling real estate" because that sounds like there is collusion. I have a standard fee, as does every other Realtor, but it will vary from Realtor to Realtor.
1 vote Thank Flag Link Wed Jan 27, 2010
Gary,
You wrote: Having done the research, I can tell you the answer, but you will not believe me.
------------------------------------------------------------------------------------------------------------------------
I might believe you, but let's see your research. I doubt very much that similar houses sell for 27.5% less when sold FSBO than when sold by a Realtor. If that was the case, we could go into business buying FSBO houses for 72.5 cents on the dollar and turning around and reselling them for full price with a Realtor.
1 vote Thank Flag Link Thu Dec 24, 2009
George, You wrote:

"Stickman: from NAR Profile of Home Sellers and Buyers 2008, page 100:
SELLING PRICE, FSBO AND AGENT-ASSISTED SELLERS
The median selling price for all recently sold homes was $204,900. The median price in FSBO sales was
$153,000, while the median in agent-assisted sales was $211,000. so that is actually 27.5% less for the FSBO. So did they save the commission? Fine."

I'm not doubting the numbers you quoted, but rather the conclusion that FSBOs are costing themselves on average 27.5% by selling the house themselves. I'm guessing that the median FSBO house, by sheer coincidence, happens to be valued by approximately 27.5% less than the median agent-assisted house.

I've seen this several times on these threads. Someone will ask a question about selling a house on their own, Realtor commissions, flat-rate Realtors, etc, and each time there will be a post explaining to the questioner how much money they will lose by not using an agent and this figure (approx 25%) is used. I'm sure there is a net income difference to the seller based on using an agent or FSBO, but I would guess it's in the range of only a few %, and may actually be in the sellers advantage. For this number to be meaningful, it would have to take into account the underlying value of the house, otherwise it's apples and oranges.
1 vote Thank Flag Link Thu Dec 3, 2009
Since I was addressed and the issue was addressed I hope you all do not mind if I just try to completely explain my view/perception of this Topic (Discussions of Commissions).

First I have nothing to gain or loose if I'm right or wrong. If proven wrong then I apologize and admit when the subject comes up I was wrong. I've posted a lot and if you breeze through my comments I've been proven wrong and I've apologized ect..

If you as a Realtor are proven wrong it carries consequences for you and others as there is a chain...The Agent to the Broker..The Broker to the Board...The Board (get my drift) and NAR is involved because you all are members...

I express my opinion which I believe is correct because those who participate in what I see as a dangerous practice can damage the industry for People/Professionals other than just their individual selves.

All Right...Let's start here

Remember the thought ( The appearance of ) Remember the Recent DOJ vs NAR case, even if you feel that it has nothing to do with discussing commissions at this point just consider/review the role (The appearance of ) was in the case the DOJ pursued

Now remember this...
Per Se Offenses in Antitrust Actions for the Real Estate Business

Definition: Certain acts of a real estate agent, broker or brokerage can be deemed per se offenses of the federal antitrust statutes if they are of the type that have been deemed extremely anticomptitive to the point that proof of their anticompetitive nature is not necessary, only that the defendant committed the act or acts.

The government has identified per se offenses in the real estate industry to include commission fixing, setting coop splits, boycotting competitors for any reason, or even agreeing to setting the time frame for listing contracts.
http://realestate.about.com/od/pr/g/per_se_offense.htm.
and this
Agents and brokers in any setting, business or social, should take great care to never even discuss commission rates in any context. It's much better to be safe than sorry in this case.
http://realestate.about.com/od/liabilityandrisk/p/antitrust_…

Now as I mentioned this topic has been around for a while, it is not by any means new..
Boycott. Price-fixing. Antitrust. Treble Damages. You. Your Firm. Your Association.
Reviewed October 2006
http://www.aaronline.com/documents/antitrustlimitedservice.aspx

Now when one considers the possibility that the internet is a fairly new frontier with all the social media ect..
it's sometimes viewed as a large coffee house, social environment enough so that "The appearance of" becomes important....

When dealing with potential violations of any kind it has always been wise in my opinion to remember that many people have believed they knew the law and were violating nothing in any way only to learn the enforcers had a different view. That is why I believe it is better to err on the side of caution.....

Price fixing is a major Anti-Trust issue and has been for a long time perhaps it would be wise to absolutely be certain you are correct? Especially in an place where all the world has access to what you say, often has little mercy in waiting for an explanation and can always be found.
1 vote Thank Flag Link Wed Dec 2, 2009
Thanks Debbie - I'm not quite sure why, with all of the flack I get for my stance, I bother.

I also sent Teddy a private e-mail, informing him, just in case he didn't pop back into the thread... and his response to me was "that's why I called it 'Customary' ".

the blog you're talking about Debbie is linked below, and thanks for reading it. But it appears for those who don't get it (you'll notice that there are a couple of commenters who didn't get it either)... it seems there's just no convincing them to save themselves... ahh, well... it gives the governing bodies something to do.
1 vote Thank Flag Link Wed Dec 2, 2009
Alan May, Real Estate Pro in Evanston, IL
MVP'08
Contact
So does Trulia. Check out item "n."


Good call Rockinblu.
1 vote Thank Flag Link Wed Sep 23, 2009
Patrick , I agree with you.

Germaine, the best and only answer anyone can or should give you is.....speak to a few local agents, and see what they are offering as far as a marketing plan, and what commission they charge. At that point you will know what the range or average percentage is.

Even if I were so inclined to share what fee I charge, I have no idea what is done in your part of Georgia, and "averages"can vary even within the same state..

As an aside, Grace, I rspect you immensely,(afterall we're off to Hawaii soon!!)..but in referencing what national brokerages do, saying that they don't negottiate commission, really isn't so, nor does it have anything to do with the idea that "commissions are negotiable". That statement is intended to mean that there is no national ( or local ) industry standard commission.
Individual companies have the absolute right to establish minimum standards for their company and associates. There is an optimum commission my company would like me to obtain, but that isn't written in stone, either.....so in the end, that, too, is negotiable.

I don't think anyone argued that Germaine's queston wasn't reasonable...of course it was. I can understand Germaine's (or any seller's) curiosity as to commission.....it's a fair question - I agree with you. But, truthfully, the range of 1-8% you provided, didn't help her with the definitive answer she is looking for - even you stopped short of telling her what specific commissions are common in your area..........only local agents can do that - preferably in the privacy of her home or their offices.

I don't think we disagree....we just have slightly different perspectives!


Anyway.........Best wishes Germaine with whatever you decide!
Debbie Rose
Prudential NJ Properties
1 vote Thank Flag Link Wed Sep 23, 2009
Why would I want to discuss this in an email so I can be told Trulia will consider what I said?

Why would I post a Question so I can be told it will be discussed by whomever at the next meeting? I asked my questions already and explained why/myview for asking.

Why doesn't Trulia start a Thread and answer some questions about policy, procedures, forms of actions taken, spam ect ?
1 vote Thank Flag Link Wed Sep 23, 2009
Dunes,

This is not the place to discuss our moderation. We realize that it's not ideal to remove comments and thus disrupt the flow of conversation. Our removal of posts isn't meant to do this, nor is it meant to protect the individuals who violate our guidelines. If you have suggestions as to how we can improve this situation, please email them to me directly or start a new thread in our Using Trulia category.

Thank you,

Emily Gibson
Community Moderator
1 vote Thank Flag Link Wed Sep 23, 2009
JR

What part of what I said suggested you make the decision based on Commission alone?

~~~~~~~~~~~~~~~
Uh, dude, what part of my post suggested that I suggested you did? I was adding my own suggestion to your suggestions. :)

(Waiting for my thumbs up for my suggestion)
1 vote Thank Flag Link Wed Sep 23, 2009
John: " I have about 30 years playing in this sand box"..................good, because children should play in sandboxes......................let it go already John...stop acting childish and making a fool out of yourself...your rudeness is uncalled for

"sorry alan
I can not be sweet to you
you have egg on your face" ....................next you'll probably be sticking your tongue out at him..............

and on that note, I, too, will refrain from further comments
1 vote Thank Flag Link Tue Sep 22, 2009
"All agents have different business plans difficult state except interview agents you have interest in ."

Now that sounds like good advice.... Germaine, I agree with Lynn though I may word it a little differently.

In my opinion you should take the time necessary (This is an important decision) and call/talk to as many different Agencies/Agents in your Market Area as possible. You can at that time learn what services they say they offer and at what Commission. You should keep a list of those who interest you by there responses and Commission rates, remember YOU are the one hiring, they are not doing you a favor by responding.

Take those who interest you and begin interviewing/getting into more detail of what your goals are and exactly what services they provide in exchange for the Commission. This is an important decision (Choosing a Agent/Agency) so be sure you and they understand what each party expects and choose the one YOU feel will best help YOU attain your goals, someone you feel comfortable working with and at a Commission YOU are willing to pay.
~~~~~~~~~~~~~

I think these are good suggestions however I would also caution against making the decision based on commission alone. Many times the issue is 1%. I'd rather pay that extra percent rather than have an ineffective agent who lists because they agreed with me on the inflated price they gave.
1 vote Thank Flag Link Tue Sep 22, 2009
Hello Germaine and thanks for your pots.

I, too, am in agreement with Lynn and Dunes, but then again, I frequently am in agreement with them. There are definitely different plans avaliable to all home buyers and sellers that can affect the commission rate. Depending on how much time the Seller would like to invest in the sale, our fees, for example, can be only 1% to the seller. There are other instances, too, where the Realty Company will not allow its agents to negotiate deals for less than "x" percent commission on the sale. They do this to prevent dilution of their name and product in the open market and to protect their reputation and business model, but each broker and real estate company is different, so it is worth you while to interview quite a few until you talk with someone you like.

More importantly, however, try to avoid the pitfalls of selling. I'll be blogging about that later today, so check my site below.

Sincerely,
Grace Morioka, SRES, e-Pro, Facilitator
Area Pro Realty
San Jose, CA
1 vote Thank Flag Link Tue Sep 22, 2009
I can not believe I am in agreement with the Dunes,
but here and now I am

OH FORGIVE ME!!!

PLEASE!!!
1 vote Thank Flag Link Tue Sep 22, 2009
"All agents have different business plans difficult state except interview agents you have interest in ."

Now that sounds like good advice.... Germaine, I agree with Lynn though I may word it a little differently.

In my opinion you should take the time necessary (This is an important decision) and call/talk to as many different Agencies/Agents in your Market Area as possible. You can at that time learn what services they say they offer and at what Commission. You should keep a list of those who interest you by there responses and Commission rates, remember YOU are the one hiring, they are not doing you a favor by responding.

Take those who interest you and begin interviewing/getting into more detail of what your goals are and exactly what services they provide in exchange for the Commission. This is an important decision (Choosing a Agent/Agency) so be sure you and they understand what each party expects and choose the one YOU feel will best help YOU attain your goals, someone you feel comfortable working with and at a Commission YOU are willing to pay.

You are hiring services and You must be the one who decide what you are willing to pay for those services..

Shop around and Good Luck, Dunes
1 vote Thank Flag Link Tue Sep 22, 2009
All agents have different business plans difficult state except interview agents you have interest in .

Example: in some instance we offer a flat rate fee, vs. other agents can't offer that incentive to a property owner.

National Featured Realtor and Consultant, Texas Mortgage Loan Officer, Credit Repair Lecturer
Follow me on Twitter: http://twitter.com/Lynn911
Lynn911
Web Reference: http://www.lynn911.com
1 vote Thank Flag Link Tue Sep 22, 2009
From the Dept of justice - the guys that enforce Sherman

http://www.usdoj.gov/atr/public/guidelines/primer-ncu.htm

not a drink throwing criminal.
1 vote Thank Flag Link Tue Sep 22, 2009
JR.........those are averages from a lot of listings - averaging a variety of listing fees.... not exact commission fees that agents actually charged
~~~~~~~
Thanks, I figured that out later, LOL!

It does give me pause to think, though. I always say there's a number between 5 and 6, I think I'll negotiate a little harder from now on. The are numbers between 5.5 and 6, too!
1 vote Thank Flag Link Tue Sep 22, 2009
JR.........those are averages from a lot of listings - averaging a variety of listing fees.... not exact commission fees that agents actually charged
1 vote Thank Flag Link Tue Sep 22, 2009
Here's some Commission rate averages ect from NAR Germaine....

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
~~~~~~~~

I thought I was being creative with my offer of 5.5%, but apparently there are others even more creative than I. 5.08%? 5.18%?
1 vote Thank Flag Link Tue Sep 22, 2009
Marla - I tried that response in my very first post , if you scroll down you'll see - "All commissions are neogiatble" - it didn't work!! So............ start pouring the drinks !!

Dunes......an innocent bystander?? hah.....
see ...the NAR can provide you with useful stats!
1 vote Thank Flag Link Tue Sep 22, 2009
[ throwing my cherry lime ricky in Dune's face ], and leaving in a huff.
1 vote Thank Flag Link Tue Sep 22, 2009
Alan May, Real Estate Pro in Evanston, IL
MVP'08
Contact
An excerpt from an article discussing anti-trust laws:

"Agents and brokers in any setting, business or social, should take great care to never even discuss commission rates in any context. It's much better to be safe than sorry in this case."
"Never use the word "standard" or "prevailing" when describing your fees and services"


John, you have disagreed with the above postion on other threads..........that's your prerogative.

I, personally, will take the advice of the experts and refrain from discussing "average" or any specific commissions anywhere, especially in a public forum.

Have a great day
Debbie
1 vote Thank Flag Link Tue Sep 22, 2009
To answer your question I'd ask how quickly do you want your home sold and how much do you want to be involved. Flat fee services can put you on the MLS but leave most of the work to you. Full service realtors do most everything from day one to get your home sold with little work on your part.

There are also flexible commission plans as well.

So my answer is how quickly do you want your home sold and how much work do you want to do. As a full service professional I ask "how much is it worth to have your home sold in the least amount of time, for the most amount of money, with the least amount of hassle to you?"

If you have any questions please call me directly at 561-283-6497.

Rodney Forbes
Realtor/Broker
Forbes Realty of South Florida Inc
http://SouthFloridaRealEstateReport.com
561-337-4810
Rodney@ForbesRealtyOnline.com
1 vote Thank Flag Link Tue Sep 22, 2009
HI Germaine

As Realtors, we really can't, and shouldn't, due to anti-trust laws, discuss exact percentages we charge. I suggest you call in a couple of local agents, and they will be happy to discuss their marketing ideas and commission fees with you.
All commissions are negotiable, so there is no "average" !

Best wishes
Debbie Rose
Prudential NJ Properties
1 vote Thank Flag Link Mon Sep 21, 2009
It is fun to look back at questions from 2009, THE FACT does not change that it is ILLEGAL for any agent to discuss, write or type an "average" commission rate especially in a forum like this. (based on FTC antitrust regulations) ANY consumer should contact an agent direct, ask what they charge and then most important ask what they get7 for what they will pay. They can then compare realistic estimates and results.
0 votes Thank Flag Link Sat Sep 27, 2014
Wow this is a crazy thread. It takes the pleasure out of answering a simple question. Everyone's input is based on their opinion and their understanding of the question. Who cares if someone disagrees with you. Why get worked up and feel that you have to explain yourself over and over again. If someone doesn't get it the first time they probably won't get it the next time either.

All the best my colleagues. Pick and choose your battles, better yet pick and choose your clients.

Alex Montelongo/Broker
Coldwell Banker Star Realty
0 votes Thank Flag Link Sat Sep 27, 2014
This question posted in Sep 2009.
88 responses in 4 and 1/2 years.

Is another one needed?
0 votes Thank Flag Link Sat Sep 27, 2014
1 2
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer