Home Selling in Saint Paul>Question Details

Juming Zhao,  in Roseville, MN

who should pay the commission, Buyer or sellor?

Asked by Juming Zhao, Roseville, MN Sat May 21, 2011

what should be a reasonable commission rate in these days and how to nagotiate ith with agent?

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Debra (Debbie) Rose’s answer
Jimmy, all commissions are negotiable, and it is improper for any agent to discuss specific commissions in a public forum.
Interview a few agents...... see what they charge, and what their marketing plan will be.
Ask for it in writing.
Compare and contrast what they are offering.

My advice is to focus on the agent.......... their experience and knowledge of your area, and what efforts they will make to get your home sold. Ask what their track record is.....what percentage of their listings sell.
While I understand that the commission is a concern, shopping for the lowest one might not be in your best interest.
There are also flat fee brokers you might want to investigate.

As far as who pays the commission - that's an often discussed/argued point here on trulia.

On the basic level............. the seller pays the commission. The sellers sign a listing agreement in which a commission is stated - to be paid when a buyer is found.The listing agent usually agrees to share that total percentage with any agent who brings in the buyer.
The commission is paid at closing, and taken out of the proceeds of the sale.

So, on the surface, the seller is paying the commission.

Now, here is where the discussions come up............it is believed that, in reality, the buyer is also participating in paying the commission, as the final accepted price is most likely factoring that in.
Without a commission the buyer most likely would be able to purchase the home for less. So, they are certainly , in effect, paying the commisson along with the seller.

Good luck!
1 vote Thank Flag Link Sat May 21, 2011
Sellers pay the commission usually 6-7%. http://www.mnhomescontractfordeed.com/washington-county
0 votes Thank Flag Link Thu May 10, 2012
Hello Juming,

Seller pays the commission.
Commissions depend on the size of the property.
F.e. 45K could run for 7%, and more than 45K will probably be 6%.
Sometimes, bonuses are paid to the selling agent - which attracts more agents' attention - say, if they sell at higher price, the agents will get a bonus.

Paying less than is standard for the area puts the seller at disadvantage - many agents won't show the property that pays less in commissions (one of the reasons properties don't sell).

Because commissions should be earned by agent's hard work on behalf of the seller - make sure to select a great marketer/agent - and review marketing plans to see what exposure you'll get to sell your house for the top dollar.

Hope this helps,

Irina Karan
Beachfront Realty, Inc.
0 votes Thank Flag Link Wed Apr 25, 2012
Commissions are negotiable but the seller usually pays the this unless there is a unusually circumstance where they cant. http://www.mnhomescontractfordeed.com I have had this happen when the seller does not have enough equity in their home.
0 votes Thank Flag Link Tue Apr 24, 2012
Commissions are always negotiable between the buyer and seller. How ever, usually it is the seller that pays the commission fees.

Isiah Youngblood, Realtor®
RealtySouth - Trussville, AL
0 votes Thank Flag Link Fri Apr 20, 2012
That'a a great question that many people ask! Sellers usually pay the commission price. A reasonable commission rate these days varies from 6-7%. You can negotiate this with an agent by saying thats what your willing to pay. Let the agent prove to you that they're worth more.
0 votes Thank Flag Link Fri Apr 20, 2012
Hi Jimmy,

Great question! Have you ever heard the old adage - "You get what you pay for?" The same is true in real estate. Discount agents will more than likely discount their service. A more experienced agent that may charge a higher rate can actually net you more money down the road.

As Debbie mentioned, interviewing several agents is key. Finding the best fit that works for you and your family that you feel can sell the home at a reasonable rate should be your hire. Best of luck with finding a great agent.
0 votes Thank Flag Link Tue Mar 20, 2012
Jimmy, Commission is always negotiable. As Debbie said, it's not a good idea for a realtor to discuss commission structures on a forum like this. But typically negotiating a lessor commission will get you lessor services. I would focus on getting an agent who offers solid experience in your neighborhood.
0 votes Thank Flag Link Wed Nov 30, 2011
You negotiate the rate with the agent by asking them what they normally charge to list a home. And unless you have previously worked with an agent, don't be afraid to interview multiple agents. It's not always how much they charge. Rather it's their expertise and familiarity with your neighborhood that will work in your favor. And if they charge a percentage more than another agent, it may well be worth it.

The Twin Cities is still small enough for many agents to work as 'local experts' in their community. The worst mistake sellers can make is to pick an agent in Blaine when they are selling their home in Savage. Familiarity with the neighborhood will be a key factor in selling your home.

There are a few brokers still left in the Twin cities that will sell your home for a reduced commission. But you will have to do much of the legwork yourself. This will include setting up showing appointments, doing marketing material and doing open houses. Unless you are absolutely cash strapped, it's best to use an agent from a full service company.
0 votes Thank Flag Link Sun May 22, 2011
Seller pays commission, it is part of you listing agreement as to how much it will be, I will range from 5% - 7%, don't let those numbers scare you or make you make a silly decision. If you get a good Realtor, Pay them what they ask!
0 votes Thank Flag Link Sun May 22, 2011

Sellers pay the sales commission when it's listed through our Multiple Listing Service (MLS). A typical rate for a full service realtor is 6-7%. This is usually divided among four parties, the listing agents broker (company), the listing agent, the buyer's agent's broker and the buyer's agent.

I hope this helps.
0 votes Thank Flag Link Sun May 22, 2011
I would echo Debbie's thoughts. A Realtor that does not market your home properly will cost you much more than 1% that you might be saving. You want to focus on how they are marketing your home and not worry about getting the lowest commission.
0 votes Thank Flag Link Sun May 22, 2011
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