Is the current commission for realtors 6% (3% seller and 3% buyer)?

Asked by Laurie, Barrington, IL Thu Jul 9, 2009

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21
Ron Thomas, Agent, Fresno, CA
Sun Jan 27, 2013
We're almost FOUR years late for you;

Hope you figured it out!
1 vote
John Walin, Agent, Libertyville, IL
Sun Jan 20, 2013
Yeah this threading is old and implies there is a standard. If a moderator is watching cancel this thread.
1 vote
Joseph Roraff, Agent, Onalaska, WI
Sun Jan 27, 2013
Commissions are negotiable. But 6% is very common.
0 votes
John Walin, Agent, Libertyville, IL
Sun Jan 27, 2013
The more i think about it, the more I tend to agree with myself...
0 votes
Ron Thomas, Agent, Fresno, CA
Sun Jan 20, 2013
I have seen as many combinations as there are 1/4 percentiles.
I have seen many numbers as total commission.
The SELLER may do anything they wish; the Agents may accept, or not.
0 votes
Victor Kamin…, Agent, Edison, NJ
Wed Dec 15, 2010
Why is trulia blasting out email ticklers for these old dead threads trying to revive them, has the site traffic been that dead, they need realtors to visit?

Commissions are negotiable in every state and there is no set standard. It depends on the level of services, marketing & advertising the brokerage provides which will generally dictate the amount they charge.

You'll have to actually talk to the brokers in your area you are considering using for an answer to that question.

Victor Kaminski
Broker of Record - JERSEY BROKERS & QUALITY RELO
Owner - Career Path Academy Real Estate School
http://www.CareerPathAcademy.com or http://www.NJRealEstateSchool.com
0 votes
Craig Bassig…, Agent, Santa Rosa, CA
Wed Dec 15, 2010
Great analysis on why cheaper isn't always better. By the time all charges are taken out there is not much left.
http://www.onlinemlshomes.com
0 votes
Sergio Herna…, , Naples, FL
Mon Oct 18, 2010
There is no such thing as "current" when it comes to commissions. Commissions are negotiable!

Realtors that have a lot to offer should be compensated differently, than those that have no value proposition.

Either way, you get what you pay for.
Web Reference:  http://www.golftobeach.com
0 votes
John Walin, Agent, Libertyville, IL
Mon Oct 18, 2010
Old question from July 2009, but I will answer for any other sellers in my area, who wanted to see the question answered.

For me, the gross commission amount is variable, depending on the price of the house, I charge more for 150k condo and less for 700k house. I offer a buy and sell discount if you list and buy with me. Also a senior discount and a fast sale discount. If you are a seller, it doesn't make sense to "save" 1/2 percent on gross commission if you get a good agent that can get more buyers through the house and net more than that 1/2% theorhetical commission savings. last point, you as a seller is paying nothing to nobody unless your home sells. So don't get wooed by a guy that will do it for 4% gross, 2.5 buyer sider, 1.5% seller side and be surprized it doesn't sell.
0 votes
Kristin Luek…, Agent, Kildeer, IL
Sun Oct 17, 2010
Dear Laurie,

In Illinois, there is no standard commission rate. Just remember, you get what you pay for. If you go with the smallest commission, you will probably get less marketing and less customer service. Meet with at least 3 agents, and then make your decision on which agent will provide you with the maximum exposure which will result in the maximum net sales price.
If you need a third agent, give me a call. I am in your area.
Kristin Lueken
Hunter's Fairway Sotheby's International Realty
847.312.8747
0 votes
Abe Mills, Agent, Greenville, SC
Sat Aug 8, 2009
Dear Laurie,

Commissions vary listing to listing, and there is no set comissions anywhere. I have heard many buyers tell me that they thought the norm was 5% or 6% and so on, but it is something that you can negotiate with your agent. Just remember the less% you pay them the less$ they have to advertise with!

Good luck
Web Reference:  http://www.abemills.com
0 votes
Dallas Texas, Agent, Dallas, TN
Sat Aug 8, 2009
Commissions both listing/ buyers agents are paid by seller at closing based on listing agreement signed with listing agent.

National Featured Realtor and Consultant, Mortgage Loan Officer, Credit Repair Lecturer
Follow me on Twitter: http://twitter.com/Lynn911
Lynn911
Web Reference:  http://www.lynn911.com
0 votes
Alan May, Agent, Evanston, IL
Sat Aug 8, 2009
There is no "current commission" standard in Illinois (or anywhere else for that matter)... a standard commission would be violating the Sherman anti-trust laws.
0 votes
Victor Kamin…, Agent, Edison, NJ
Fri Jul 10, 2009
Um.... If Laurie is a real person and not just a person with another profile asking a loaded question to start a controversial topic...

Commissions are negotiable in every state and there is no set standard. It depends on the level of services, marketing & advertising the brokerage provides which will generally dictate the amount they charge.

You'll have to actually talk to the brokers in your area you are considering using for an answer to that question.
0 votes
Cher Varnum-…, , Ellicott City, MD
Fri Jul 10, 2009
Read what everbody here has to say. Get your 3 presentations from different companies if you are listing. This is a job interview and you are offering the job. Then negotiate your commission fee. Everything is negotiable, but make sure whatever fee you negotiate 'down' to includes everything you want the agent/brokerage to do and everything they are willing to do for that percentage. If you are working with a buyer's agent, for the most part they have nothing to do with the commission fee other than to collect at settlement. The listing/seller sets the commission they are willing to pay to get the house sold. One portion goes to the listing agent/brokerage and the other goes to the selling agent/brokerage. The agent's commission is based (usually) on their prior performance at the brokerage where they work. The agent can end up with as little as 40% or as much as 90% depending on what they sold last year and their contract with the brokerage for whom they work. That 40%-90% is based on (usually) half the entire commission. Not as much as folks think! Good luck!
0 votes
Nancy McClary, Agent, Punta Gorda, FL
Fri Jul 10, 2009
There is NO current commission! A decision about the commission is totally between the seller and listing broker and is negotiable. Of that commission, again, it is the listing broker's decision about how much to offer a cooperating broker.............There are NO set rates.
0 votes
Keith Sorem, Agent, Glendale, CA
Thu Jul 9, 2009
Laurie
If you have to sell...meaning you have no other options, think of commission like this:

How much do I need to net?

Interview at least three Realtors. Have them analyze your situation. Compare their proposals. Tell them that you are interested in netting the most when you sell.

Is having a great marketer important to the sale of your home?

Is having a great negotiator important to maximizing the sale price and protecting your net?

You need to find the best professional that can meet your needs. You are not searching for a commission rate. So ask them for a written proposal, then make the best choice, and be clear about your needs and expectations.
0 votes
Bob Brandt, Agent, Schaumburg, IL
Thu Jul 9, 2009
Anti-Trust Laws prohibit a standard, agreed upon among Brokers, commission rate. You will find the rates and some services/quality to be different as you do your shopping for the Right Realtor to sell your house.
Web Reference:  http://www.realtybob.com
0 votes
Edward J. Pl…, , Carol Stream, IL
Thu Jul 9, 2009
Hi Laurie,

There is no such thing as a standard commission in the real estate industry. Commissions vary between companies and even between agents in the same company. Level of service is an important consideration.

Too many consumers do not take into account the difference in service they receive when they list with the agent quoting the lowest marketing fee(commission). In general, when you want better quality you often pay a higher price. When I take a listing, my office and I handle all details of marketing (signage, flyers, mailings, newspaper ads, web sites, hotline number, open houses) as well as scheduling the showings for the property. In addition, I provide any assistance I can to my clients from offer to contract to closing to make sure the deal proceeds smoothly. Most discount agents do not market as thoroughly. Many delegate much of this work to the sellers. I have seen sellers preparing their own brochures and handling their property showings. Illinois law prescribes a minimum level of service a real estate broker must provide: presentation of offers, assistance with negotiation and explanation of the forms. Illinois law does not specify marketing activities.

You don't get what you pay for. You get what you shop for. If you are thinking about listing your home, give me a call. Compare what I have to offer to what the competition is offering. Compare the marketing fees.

Ed Plaskacz
Prudential Starck, REALTORS
AskEdAboutRE@hotmail.com
630-561-0885
0 votes
Royal Hartwig, Agent, Palatine, IL
Thu Jul 9, 2009
Hi Laurie,

I would agree with Bill that commissions vary and it all comes down to what level of service is provided and the track record that the Realtor has in getting homes sold for the highest price possible. There is much variation from one Realtor to another in the level of service provided as well as the marketing that is done for the property.

If you would be interested, I'd be happy to show you how I market homes so you can compare to the Realtor you are interviewing.

All the best,
Royal
0 votes
Bill Eckler, Agent, Venice, FL
Thu Jul 9, 2009
Laurie,

Fees for professional services are negotiable but typically vary, with a range of 4% to 10%. There can be some variation based on the companies level of service provided. The more common "full service" fee structure is found in the 3-7% range.

Best wishes.
The Eckler Team
0 votes
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