So throughout the process my buyer's agent ended up having to walk through the seller's through many of the issues/processes. Luckily for the seller's, we had no desire to try to influence them negatively or take advantage. During one point in the negotiations portion, the seller's couldn't get ahold of their attorney for about three days and we had to help them out.
Bottom line, in this business you get what you paid for generally.
Michelle and the Yoo Team Realtors
There is no such thing as a legal commission rate. All commission are determined on what is agreed upon between you and the agent. However be aware of what you are going to get for the money. Also on the listing contract there is a spot where the listing agent has to tell you what they are going to pay the selling office. A % of the money goes to the listing office and a % goes to the selling office. By being listed in MLS if you are looking to have agents from all offices show and sell your home you they will want to know what % they will be paid to do this. So make sure when you are speaking to agents that they all telling you everything. That way you can compare apples to apples.
When considering commission rates, consider who is going to give you more bang for your buck. Hiring a real estate professional is an investment. You can't look at how much you are paying them, you have to look at how much they will get you for your property and what's left in your pocket when all is said and done.
Someone only charging $300 isn't going to have the marketing and negotiating skills/desire to get you $220,000 for your house. They also won't have any interest in getting you the highest possible price - they just want to get you off the books. How motivated do you think they'll be for $300? So their marketing strategy will be "Lower the price." They definitely won't be syndicating ads out online, posting to Craigslist & Backpage, using high-end photography, creating floorplans, virtual tours and video, having knowledge of internet marketing, networking with other agents, etc to sell your house. All things which get sellers a higher price. Most likely, it'll sit on the market and you'll have to reduce the price. Eventually, you only get offers for under $200,000.
So, say a good, motivated agent gets you $215,000 with expert marketing, staging, etc . He charges $12,000. You get $203,000.
Paying more in commission actually net you $3,000 MORE than paying the $300 guy.
The mistake most people make is thinking they'll get $12,000 worth of results paying a $300 agent. That could have been true in some cases in 2004, but it just doesn't happen that way anymore. Agents have to have systems in place and an actual marketing plan to sell houses. And all of that skill costs money to get and maintain. Not all agents are created equal - we don't all do the same thing for the client.
Best of luck with your sale!
First Weber Group
Certified Distressed Property Expert