Home Selling in 14201>Question Details

Al + Vivian…, Both Buyer and Seller in Buffalo, NY

Real Estate Commission

Asked by Al + Vivian Robinson, Buffalo, NY Sun Oct 26, 2008

What is the norm on the percentage you should pay a real estate agency to sell your home? I hear it's anywhere from 4% to 7%. Whats the real deal

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Al & Vivian,

There is a range of between 4 and 10% with the current popular rate holding at 6%. If you are considering selling there are some important considerations to keep in mind.

1. Interview a number of agents before deciding

2. Look for an agent offering a comprehensive marketing plan....if they can't explain it, move on......

3. Seek a HUGE internet presence...90% of today's buyers begin looking on the internet

4. Ask where they will advertise your specific property and what their advertising budget is...

5. Ask what their sales volume was for last year and how many homes they have sold in the last 6 mos.

6. Have they sold homes in your community?

7. Why should you choose to work with them instead of another agent?

8. Make sure you choose a "full time" agent. Part time agents = less than service

9. How do they plan to sell your home?

10. What is their company doing to attract buyers?

There should be a connection between your commission rate and the services you expect to recieve. Our best advice is to make sure you clearly understand what services you are recieving before you enter into an agreement.

Good luck,
the "Eckler Team"
0 votes Thank Flag Link Fri Oct 31, 2008
Hey, that is a great question.
Rates actually go up to 10% in some places, so the true question isn't about commission.
The true question is this: How do I net the most profit when I sell my home?

The answer is: You will receive market price when the property is properly prepared for market, marketed, correctly, and priced right.

The question about commission is s red herring. I've seen people list their homes for low commission...and they never sell. I've seen people list with above-market commission, and not get the results that they wanted.

You need, as a consumer, to analyze the Realtor's proposal and determine if you believe that their proposal will produce the highest profit for you. A big part of that profit comes from great negotiating, so you should expect that the Realtor you hire can demonstrate great negotiating skills.

Good luck.
If you'd like I'd be happy to refer you to a top Realtor in Buffalo. They will be a great negotiator.
1 vote Thank Flag Link Mon Oct 27, 2008
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
There is no norm. By the content of all of the questions, it appears that you are a tester from HUD, so a word of caution to everyone. If you are not, pick up the phone, call a local realtor and have them come to view your property and ask them their fee. Without signed agency disclosure, an agent licensed in NY State cannot discuss money (Substative contact).
1 vote Thank Flag Link Sun Oct 26, 2008
I am not a sales agent. So I don't think the law applies to me. I only want the most for my money. Furthermore the answers are always ranges being 4-10%;. I would rather pay more to get the best sales agent that brings the most offers to the table.
0 votes Thank Flag Link Fri Oct 31, 2008
All licensed real estate agents and brokers either know or should know it is illegal to discuss commission in an open forum as it violates the Anti Trust statutes and is a federal offense. In order to answer your question, the only LEGAL answer is you really need to contact each office independantly and ask what they would charge you. Realtors can discuss any offices commission except their own. this is a huge no no people. Please check with the owners of your company and/or your attorny if you have any questions, you cant mess with uncle sam. Sorry i couldnt be of more help Al and ivian , however if you call around you will get what you are looking for,
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Thu Oct 30, 2008
If the commission is split then that would mean *every* agent would then be eligible to get paid off my 374k home in Buffalo NY that is listed. Is that true....? This is the 1st time I sold a home. The ML# Is 323664
0 votes Thank Flag Link Thu Oct 30, 2008
Your range is right, although there are some sellers offering bonuses to selling agents for attracting an agreeable offer. The fee depends on the realtor and their company, and exactly what services they provide. Be mindful that you wil get what you pay for, and in our market in southeastern PA and northern Delaware, the co-broker, or portion going to the agent who brings a buyer is more often 3%. - due to the high amountof inventory on the market. If I can help, give a shout or email jroosevelt@kw.com 610-764-3062
0 votes Thank Flag Link Mon Oct 27, 2008
What is the norm for a lawyer, or any other professional? Answer: Depends on how good they are are getting the job you want done. Nuff said!
0 votes Thank Flag Link Mon Oct 27, 2008
Anywhere from what the lowest says to anywhere from what the highest says. Each Realtor is an independent contractor. We evaluate our worth and that's the fee we charge (sometimes our brokers set a minimum we can charge). It is then our job to prove our value to you.

Whatever you do, never hire a Realtor based on 1) the commission and 2) the valuation they present on your property.
Web Reference: http://GailGladstone.com
0 votes Thank Flag Link Sun Oct 26, 2008
Good question Al + Vivian. We all want to knwo this answer!!!
It is simple really. It is illegal for commissions to be mandated or 'set' by ANY Broker/Agent or there franchise or agency.
However most will range between the 4-7% depending on the area you are interested in. Let me elaborate a little more... When you negotiate your fee as a Realtor/Agent/Broker you always try to match the amount of value and marketing you can offer with the cost/commmission you are asking a seller (or buyer) for.
If you provide a full service range then you deserve to be paid the higher end. If you can only get a smaller fee then you need to be clear on WHAT you are offerring and what you're not!
As a buyer and seller of real estate or what we call a consumer you need to find out what the Realtor is offering by way of their service range of products and marketing tools etc. Then establish their experience and agree in a way that BOTh sides are in total harmony. Hope that helps...
0 votes Thank Flag Link Sun Oct 26, 2008
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