Home Selling in Palm Springs>Question Details

Lee Balan, Home Seller in Palm Springs, CA

What is the average percentage that a real estate agent gets on the sale of a home?

Asked by Lee Balan, Palm Springs, CA Wed Apr 22, 2009

I have a 2003 mobile home that I want to sell. One agent said he takes 10% commission. I think that sounds too high.

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6
Not to mention that this is an older post--however, all commissions are negotiable between you and your agent--there are no set standards, as it would go against Federal Laws--Sherman Act/Clayton Act/Anti Trust--punishable by hefty fines and possible jail-- it would be considered a felony if violated.

Anna
1 vote Thank Flag Link Wed Jan 6, 2010
Absolutely ridiculous. 6^ % is usually the max. Some accept contracts for 5%. Find another agent!
0 votes Thank Flag Link Sat Sep 5, 2015
On the open market we typically see rates bid down to between 4% and 5%. Some Brokers don't allow their Agents to negotiate but there are many agents especially the Broker/Owners that are willing to be around the 4% mark. We feel the open market system is the best way to get the lowest real estate commission rate... and it is free to Sellers. Try it: https://www.ListingBidder.com
Flag Wed Mar 9, 2016
Lee, most listing agreements average 5-6% on regular home sales in the $750k range and below. On higher priced homes it is not unusual to see that commission drop to 4% since the return for the agent's time is higher. Although commissions are always negotiable by law, your agent is not asking for an unheard of amount. It is not at all uncommon for mobile homes in Palm Springs to be listed with a 10% commission simply because the selling price of a mobile tends to be lower. Your agent has just about as much work to do in selling a mobile home as he would have in selling a million dollar home. One thing that is really important to you though is the amount that the agent will offer to other agents. Make sure that if you go with 10% that the agent is offering out half that amount to any agent that brings a buyer. This will help to keep your property competive. Agents that are showing properties don't like to admit it, but when they look at potential properties to show to a buyer they do tend to bypass listings that will pay them less than average for the type of property being sold. Wouldn't you rather take your buyer to see a 5% listing than one that only will pay you 3%?
0 votes Thank Flag Link Wed Jan 6, 2010
Hello Lee-

There is no set answer to your question, Real estate commission is negotiable. Now, that being said, remember, the agents in your area know how easy/difficult a given property is going to be to sell. They know the condition of the property. They know the market conditions and how many properties like yours are selling. All of these things are taken into consideration when coming to a sales commission for a given property.

Another consideration that this agent may be looking at is offering more commission to the buyer's agent in hopes of driving more traffic to your home.

Talk it over with your agent. I am sure they will explain whay they are asking for 10%.

I hope this helps.

Regards,

Danny
0 votes Thank Flag Link Wed Apr 22, 2009
most real estate agents are paid through a listing agreement, which is signed by the seller and the listing agent. The agent signs on behalf of the brokerage.

The listing agent then shares part of that commission with the agent who represents the buyer. All real estate commissions are negotiable, and are paid directly to the broker, not the agent. Agents work for the broker. Typically, it is the seller who designates how much the buyer's agents are paid.

A listing commission can vary from 1% to 10% or more of the sales price. Let's look at an example of how much a listing agent earns if the commission paid is 7%, with a 50% split with the brokerage who produces the buyer.

Say the sales price is $200,000. The total commission at 7% would be $14,000, of which $7,000 is retained by the listing brokerage. From that $7,000, the listing agent is paid on a split, which on average is around 60% for a first-year agent.

This means the agent would gross $4,200. After deducting federal and state taxes, which could amount to 30% or more, the agent would net about $2,940. The agent also pays overhead and expenses, which could eat up another 20% of the gross, resulting in a net income of $2,100.
0 votes Thank Flag Link Wed Apr 22, 2009
Lee,

We do not have a set percentage that we charge. That is always negotiable. If the agent is charging 10% it is most likely he or she is doing that because of the price the mobile home will sell for. It takes as much time and expense to market a home that maybe $100k or less as it does to do the same for a more expensive property. That agent is probably just trying to make sure that in the end he/she is going to make money and not lose money.

All my best,
Dot
Web Reference: http://www.DotChance.com
0 votes Thank Flag Link Wed Apr 22, 2009
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