The most important factor here isn't how MUCH you pay, but WHO you pay it to. The right agent - one you trust and one that will get your home sold for the most money - is worth it.
Cheaper realtors aren't necessarily better. You wouldn't choose a brain surgeon based on price, would you?
Commissions are negotiable, so feel free to offer to pay what you think marketing your home is worth.
If you are seller, give agent free customers some incentive, and agent not more than 2%.
Its a jungle out there ....
Not a game at all. Since there is no "set" commission by law, it is always negotiable. However, many Realtors provide services to your listing on a sliding scale depending on the amount of commission. Believe me, in these times, it takes a lot of time, effort, energy and out of pocket $$ to get a home sold. So, as many posters have said (or insinuated), you get what you pay for.
Real Estate Commissions are not set it stone - they are negotiable....
Just the way we negotiate or select different professionals for different jobs, or we select them for various reasons....
But how many times do we all select the better mechanic for our car repairs even if he charges more! How many times do we rather have an electrician with a super reputation and someone we trust do the job, even if he is the more expensive one...... So - the same goes for Realtors.... as their commission is often based on the higher need for advertising or marketing, or the Realtor knows that it will take much longer to market the property in question in the current market, or because the seller wants/needs to sell quickly the Realtor understands that a more aggressive advertising and marketing will have to be done which will be more costly....
I think after reading all the other answers as well - you may understand a little bit better, that the variation in commissions is really not a "game", it is a necessity based on the requirements for advertising, marketing, time and effort invested by the Realtor to get a specific property sold....
Good luck to you!
Your Chicago and Northern Illinois Expert
Web Reference: http://rubloff.com/agents/glenview/edith_karoline__jass...
It really isn't a game. The Government does not like the idea of set fees (Sherman Anti-Trust and all that). Besides, it makes sense. Agents can do more for you if they are assured that you will pay more upon the sale of your home. Or they can do less if money is a real issue for you. You may not sell as quickly or you may have to hold on to your home if it doesn't sell, but this is a good option for some sellers whose homes have lost value and they just want to get out without losing their proverbial shirt.
For the same reason a car salesman negotiates the price.
For the same reason a home buyer will negotiate the price.
For the same reason two gas stations may charge different prices for a gallon of gas.
For the same reason two plumbers may give you different quotes for a job.
It all depends on the services you're asking for, your ability to negotiate, the other party's ability to negotiate, and the underlying cost structure of the person you're negotiating with.
It's not really a game, though you may find it more acceptable if you view it that way.
Commissions are negotiable. So feel free to negotiate.
Hope that helps.
We offer various options to our sellers and the fee structure can be lower than 4%, or exceed 8%. I have definitely closed contracts with fees both below and above these numbers. It is not a game.....at least for us. We determine the fee structure by evaluating the marketing campaign that we will engage for the subject property, the complexity of the transaction, the property value, the competitive landscape for that subject property, and the seller. We do not approach real estate from a one-size fits all perspective. We offer sellers many options, learn about the property and assess the situation. Our sellers play an active role in the discussions that determine the fees. We sometimes offer a buyer's agent a higher split than we take. Other times the buyer agent may receive an equal split, or we do, sometimes, offer a lesser split. We always weigh in with strong opinions that buyer agents should be paid well.
Some agents may have the same seller program regardless of the rate charged, but they will still negotiate for a higher rate. You may consider that a game. I have negotiated fees with attorneys, accountants, property management services, relocations services, and other agents. Before I was in real estate, I negotiated national and global contracts of substantial figures with Fortune 100 companies. There, I was dealing with savvy business people on the other side of the table, and it was a lot of cat and mouse in those negotiations. But, it was my job and it was just business. Maybe some those maneuvers made the job interesting. Today, I get excited when a position strategy benefits my real estate client. I recall reading a thread on Trulia a while back in which agents were saying it didnâ€™t matter, the seller already knew what his/her # is. I never joined that thread, but I could not have disagreed more.
On Sept 1, in Monmouth County, the Womenâ€™s Council is holding a class on Negotiating Skills. I believe negotiation skills are one of the values we bring (or should bring) to the table for our clients.
I am the Broker for Peninsula Realty, and we strive to be straight forward, candid and easy to work with and understand. It is never our intent to play games, but we do not have a one-size-fits-all perspective for real estate. When I entered real estate in the 90â€˜s I didnâ€˜t understand that viewpoint, and I thrilled to see the evolution of consumer choices in real estate. If you asked me what we charge, the answer would be â€œIt depends.â€ But, itâ€™s very easy to get an explanation, and thatâ€™s why I say we are not playing games.
Deborah â€œDebâ€ Madey - Broker
Peninsula Realty Group - New Jersey
President - 2010 Womenâ€™s Council of REALTORS
732 530 7755 (Main)
732 530 6350 (Direct)
732 784 8450 (Mobile - Text or Voice)