What's the comission split between listing & selling agents in Walnut Creek? Of the 6%, do they split 50/50?

Asked by Joe, Menlo Park, CA Fri Aug 3, 2012

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Steve Curtis’ answer
Steve Curtis, Agent, Walnut Creek, CA
Thu Aug 9, 2012
As you have heard by others in this forum the total commission is negotiated by the Seller and the Listing Agent. In some circumstances, however,it may be dictated by outside parties, like in short sales. Within that Listing Agreement the amount to be paid to the Buyers Broker is also established. Again, negotiated/discussed between the Listing Agent and the Seller.... often the percentage to the Buyers Broker is 50% but may be more or less than that depending on the Agreement between the Seller and the Agent. Right now in Walnut Creek 2/3 of the offers of compensation to the Buyers agent are 2.5% or less

The amount paid to the Agent is set by the Agent's agreement with his/her Broker and may range from a 50/50 split to a full 100% split, less costs. As noted below the agent then pays ALL of their costs out of their portion, including both sides of social security, medicare, health insurance, marketing costs, car costs, phone costs, 401k. These can easily total 50% or more of their gross income ... not including income taxes.

So on a $500,000 sale the agent who actually helps you buy your dream house will probably make enough after all the costs to make a house payment.

Steve Curtis
Broker / Owner
Windermere Walnut Creek
0 votes
Dayna Wilson, Agent, Walnut Creek, CA
Thu Aug 9, 2012
Joe, so curious why you are asking? Have you discussed this with your agent? Agreeing with most of the answers below: it is 'customary' that the listing agent splits their fee with the selling agent 50%/50%. I am frustrated that more agents don't have the negotiating skills to demand 6% each and every time they list a property. With some value-added services we cn ask for more than 6%-all negotiable. Joe, we work very hard for our fees, as I'm sure you do in your job. You are hiring an agent to negotiate on your behalf, protect you, explain the legal documentation you are signing, guide and advise you. We have a fiduciary responsibility! In short, you are paying for a highly trained, educated professional to handle one of, if not THE largest financial transaction you will do in your lifetime. Small price to pay. Interview Realtors and compare...not all of us are created equal. If you need a great referral for an agent in Menlo Park, give me a buzz!
0 votes
Frank Salmen, Agent, Orinda, CA
Thu Aug 9, 2012
Joe,

You question is simple and direct. It looks like you are getting a lot more information than you asked for! Generally the split is 50/50 but there may be conditions where that is not the case. The amount paid to the buyer broker is agreed to in the listing agreement. Variations in the split are generally determined by expenses and fees incurred by the listing broker. I'm interested in why you ask this question. Are you buying or selling?
0 votes
Suzanne Look…, Agent, Lafayette, CA
Thu Aug 9, 2012
Hi Joe,

This is a good question because many clients don't understand how little of the 5% or 6% we actually take home. If the seller is giving a total of 6% commission to both sides, then my side gets 3%, however of this 3% we give our office a large cut. Many commissions are now at the 5% level, so our cut would be 2.5%, of which we share with the brokerage we hang our licence in.

On an average, I calculate that I net anywhere from 1/2% to 1% of the sale price. Of this figure, I pay for all of my overhead, time, expense related to real estate including charges for my desk, tech support, E&O insurance,etc. This does not include taxes due at the end of the quarter.

In reality, we have to sell many homes to make a good income. That is why you find that many of the excellent realtors are extremely busy.

Hope this helps to clarify our commission structure.

Regards,
Suzanne Looker
Web Reference:  http://www.suzannelooker.com
0 votes
Mike Hill, Agent, Clayton, NC
Thu Aug 9, 2012
Commission split in Walnut Creek is the same as everywhere else... completely negotiable.

Commission is usually paid by the Seller. The commission of 6% is negotiable. The split is negotiable. It's all part of the negotiations... so each deal is unique.

Work with your agent for your unique deal.

Mike Hill
Norman-Hill Properties/Crown Key Realty
925.997.6768
0 votes
Ron Thomas, Agent, Fresno, CA
Sat Aug 4, 2012
I cannot figure out why, people feel they should know how much a Realtor makes;
we publish it because it is part of the negotiation between the Seller and Listing Broker.
But it is the way it is pushed in our face that irks me.
Do people ask the Plumber how much the Plumbing Company pays him?
Does your Mechanic share how much an hour he is paid?
Do you go around town broadcasting how much your Adjusted Taxable Income was?

Really bad form!
0 votes
So why are you hiding it? It make me think, what else are you hiding?
Flag Sat Aug 4, 2012
Anna M Brocco, Agent, Williston Park, NY
Fri Aug 3, 2012
Depends, therefore consider asking your agent the question...
0 votes
Alan May, Agent, Evanston, IL
Fri Aug 3, 2012
The commission split between agencies is determined by the listing agency, who typically publishes an "offer" in the local MLS as what portion they're offering to share with the buyer's agency.
0 votes
Shanna Rogers, Agent, Murrieta, CA
Fri Aug 3, 2012
Hi Joe,

That is between the listing and selling agents. It is stated in the MLS or if one of them is not a member of the MLS, they do a Cooperating Broker Agreement. Most split it 50/50 but it can be split differently - depending what their agreement is.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes
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