Average commission percentage

Asked by rssraj, 11375 Sun Jul 8, 2012

I'm curious about this - what is the average commission most brokers charge in the flushing area? I don't want to sign an exclusive agreement but need an agency to market my 1 family home (appraised recently for $900k) and conduct a couple of open houses over 2-3 weekends. If at that time, the house doesn't get offers, I would like to continue with single showings for a few months

Thanks

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13
Anna M Brocco, Agent, Williston Park, NY
Mon Jul 9, 2012
Commissions are always negotiable between you and your agent, there are no set standards; if two agents are involved in the transaction the fee is shared...therefore choose your agent with care and not by commission alone....
1 vote
Alan May, Agent, Evanston, IL
Sun Jul 8, 2012
the Broker A/Broker B situation you describe would be highly unlikely to happen.

And you're asking... do brokers stick with the rates that you agreed to in writing?? Yes, they do.
1 vote
Debra (Debbi…, Agent, Livingston, NJ
Wed Jul 10, 2013
I wonder what rss wound up doing, and if his house ever sold!

Would be nice if he came back now that it's a year later and "complete" the story!
0 votes
Annette Law…, Agent, Palm Harbor, FL
Wed Jul 10, 2013
RSS,
it's a clever stategy, but way too one sided.
Debra Rose has shed light on the situaion that you really need to consider seriously.
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Be aware that real estate professionals are PROHIBITED from discussing compensation that includes numbers. The reality is...it's all negotiable....and rightly so.
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Imagine the scenerio you propose. This compels a full service agent to decide...do a market fully and risk losing the opportunity of recovering my costs or do modifed marketing at lower cost and roll-the-dice. Your proposal does not allow proper market forces to produce the resutls a home priced at $900,000 would benefit most. Your proposal WILL benefit the 2nd or 3rd agent MORE. Now who wants to sign up for that? This is similar to buying a 1st Class ticket without a seat assignment. You simply don't know where your position will be. Not a good strategy for those who have real expectations.
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Your expectations can be acheived, but you willl NOT be able to control BOTH sides of the conversation and get the results you expect. That is what is so increadible about real estate....everything is negotiable! Be aware, this conversation, the negotiation, also involves a real estate professional assesssing if YOU are a person they want to do businesss with.
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Best of success in your home sale,
Annette
0 votes
Lisa Liang, Agent, New York, NY
Wed Jul 10, 2013
Rssraj, in today's market, if your home is priced right, you should get an offer in 4 weeks. If not, something is wrong, could due to the price is too high, or the marketing package is not working. Find out how much money you want to net after commission paid-out instead of just the commission %. Also if you expect the agent to put 100% in his/her job and work together with trust and loyalty, exclusive agreement is necessary. Find a local expert TODAY and let him/her bring you the qualified buyers and get your bottom line. Hope this helps.
0 votes
Christopher…, Agent, Tarrytown, NY
Mon Jul 9, 2012
No agent is going to give you 100% attention and time without an exclusive agreement. Keep in mind you get what you pay for and what you don't pay for...
0 votes
Gail Gladsto…, Agent, 11743, NY
Sun Jul 8, 2012
Commissions are not standard or average. Each Realtor decides their own worth and that is reflected in what they charge.

Any Realtor worth their weight would not work with you without an exclusive Marketing agreement. This does not mean they are the only Realtors who can sell your property, but they will be the only ones who market your property...to buyers and other agents alike.

The arrangement you are suggesting will be highly detrimental to your purpose.

National statistics show that Realtor represented properties bring in 20.768% more money than owner represented properties.
0 votes
Debra (Debbi…, Agent, Livingston, NJ
Sun Jul 8, 2012
you seem to be expending a whole lot of energy coming up with scenarios with multiple agencies "marketing" your home at the same time..and a lot of "what if's"..............

Seriously?

Just sit down and speak with a few local agents.....if you want to work with a Realtor, fine, do so........if you want to be a FSBO, fine...do that.........but this idea of yours, with several companies marketing your home at the same time, IMO, makes no sense, and as Alan noted, will probably never get off the ground.

Who will list it on the MLS?
Who will advertise it?

Just sit down and talk............. and learn what is involved in having a Broker market your home and bringing in buyer agents........
0 votes
rssraj, Home Buyer, 11375
Sun Jul 8, 2012
If there are two agencies involved in marketing the house (non-exclusive agreement) and each one coming in with offers, how often would Broker-A reduce his contracted commission?

Broker-A offer 500k @4%
Broker-B offer 492k @2%

I would think in most instances, Broker-A would agree to a reduced commission but would love to hear from you guys. Do brokers STICK with their contracted commission rates, even at the risk of losing a deal?
0 votes
There is very little incentive to market or spend time on non-exclusive listings. The best thing to do is list with an agent and offer a healthy commission to buyer's and broker's agents to give them incentive to bring in buyers. As I explained before if you get an iron clad guarantee that you may cancel the listing if you are not satisfied, there is no down side for you. Please feel free to contact me with any questions or comments.
Thank you
Tom Brady SFR, SRES, e-PRO, GREEN, BPOR
Lic. NYS Real Estate Agent
Flag Sun Jul 8, 2012
There is very little incentive to market or spend time on non-exclusive listings. The best thing to do is list with an agent and offer a healthy commission to buyer's and broker's agents to give them incentive to bring in buyers. As I explained before if you get an iron clad guarantee that you may cancel the listing if you are not satisfied, there is no down side for you. Please feel free to contact me with any questions or comments.
Thank you
Tom Brady SFR, SRES, e-PRO, GREEN, BPOR
Lic. NYS Real Estate Agent
Flag Sun Jul 8, 2012
Debra (Debbi…, Agent, Livingston, NJ
Sun Jul 8, 2012
actually due to federal anti trust laws, agents should not discuss commissions other than to say : "all commissions are negotiable".

You will need to do your homework and speak with a few local agents.

If I understand you correctly - you'll sign a short term listing agreement, but you want the option to jump ship after a month, and hop from one broker to another...or have 2 companies working simultaneously (your idea of a "non-exclusive agreement)????

Personally, not that it matters because I don't work in your area, I would never entertain that kind of arrangement.
I'd want to know I am working with the seller, as a team, with a reasonable amount of time to get from point A to point B (ie, the closing table).

I am sure there is someone out there who is anxious enough for business that they will agree to whatever you are proposing.........so......best wishes and I hope it works out the way you want it to!
0 votes
Thomas Brady, Agent, Plainview, NY
Sun Jul 8, 2012
Hi Rssraj. There really is no average, each agent negotiates independantly and a lot goes into the setting of a commission rate. There is a huge difference between flat rate listing agents and full service agents. Also the commission paid out to buyers and brokers agents is important, and to a large extent determines who your home is marketed to.

Do you want a full marketing plan, or only one that encompasses free marketing? You need to sit down with a few agents and discuss their marketing plans, then discuss commission. If you pay the absolute lowest commission and your home doesn't sell, did it do you any good? There is usually a happy medium to be found where you can get a unique marketing plan, a good agent, and pay a fair commission.

My last bit of advice is to get a cancellation guarantee from whichever agent you list with. Make sure that it says that you can cancel at anytime if you are not satisfied (not if the agent doesn't do their job). This will give you the ability to switch agents if you are not happy, but also give the agent incentive to spend time and money to get your home sold because you are exclusively listed with them. Good luck, please feel free to contact me if you would like to discuss this further,
Thank you
Tom Brady SFR, e-Pro, SRES, GREEN
Licensed Real Estate Salesperson
Notary Public, Ret. NYPD Lt.
631-682-8660
Tom@BradyFamilyRealty.com
http://www.BradyFamilyRealty.com
"We treat you like family!"
Charles Rutenberg Realty, Inc.
255 Executive Plaza - Suite 104
Plainview, New York 11803
0 votes
rssraj, Home Buyer, 11375
Sun Jul 8, 2012
I'm up for an agreement, just NOT AN EXCLUSIVE agreement. Which means I can get another broker a month down the line to also do the same thing for me

I know everything is negotiable. I'm just looking for average rates - is the average like 3% or 4%?
0 votes
Debra (Debbi…, Agent, Livingston, NJ
Sun Jul 8, 2012
All commissions are negotiable.......you need to interview a few local agents to see what they would charge... AND, more mportantly, to see if they are willing to work with you in the creative manner you described above.

I doubt anyone would "market" your home without a written agreement of some kind.........if you want to be creative, then look for someone who will go along with that.

best wishes.........
0 votes
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