Luis Fernandez, ABR, CIPS, GRI, QSC, SRES, Top 1% of Westchester Brokers
The Luis Fernandez Sales Team
Keller Williams Realty Group
Tel 914 902-3251
Cell 914 309-9383
The average commission is between 3% to 6%. That said...there are plenty of ways to approach this, suffice it to say, the more marketing options you choose (which translate to your selling your house faster and for higher) the higher the commission.
That said, there is something that homeowners may not realize...while the realtor will get their 4% or 6% commission, they know how to professionally do their job so that the seller gets the highest and best as well as sell it quickly and end up making the seller more money than if the seller sold the home on their own.
It is a proven fact that most homeowners lose money when they sell on their own due to factors such as the market (and mispricing their homes as a result) which ends up costing them in the end as the house stays on the market so long that the only way they can move it is to lower the price. A good realtor will also know how to negotiate in a sellers best interest as well where a lot of sellers end up agreeing to buyers that pressure them enough to settle for less than they would want to take.
End result could translate into a scenario where a seller that could get say $550K for their property and pay the realtor something like 6% and end up with $518K in hand. Sounds bad? Think of the very possibly reality as the alternative.
They could sell the house on their own - maybe they'd list it at $575K, 3 months later, still not sold they would be forced to lower it to say $550K, and in the end 9 months later, sell it for $510k.
Things like this DO happen all the time...so there is a lot to consider when thinking about whether or not you should hire a realtor.
Needless to say, always make sure you feel confident that the professional you are thinking of working with understands what your expectations are and if they do not meet your expectations always feel free to let them know that. Any realtor would understand that since they are working for you, YOU are the boss and what you say goes. That coupled with their expertise is a win/win situation.
If you are planning to sell your home, and your profile says that you are, then you want to know what it is going to cost you, right?
By law commissions are negotiable. In practice, commissions serve an incentive for agents.
As a seller, this cuts two ways:
First, you want the Realtor that can help you net the most money AFTER the transaction closes. When you are interviewing Realtors ask them "why should I hire you?". I would also ask them "How can you make sure I net the most money when I sell?" and see what they say.
Second, you have the Realtors that bring the buyer, also known as the "selling agent". If you cut the commission, you might turn off some Realtors, if it is above average, you might get more showings, hence more offers, maybe a higher price.
My experience the biggest problems that sellers have is "what do I do to my home to prepare it for market so I net the most when I sell?". The bottom line is that only about 20% of homes are really marketed correctly, prepped for sale correctly, and priced right. So you need to figure out when talking to these Realtors where they stand.
To put it another way, 80% of homes are not prepped, not marketed well, and over-priced. You do not want to be in that group.
Good luck. If you need a referral to a top Realtor in your market, let me know.