A total commission of 6% is typically asked for by “full service” Agents working for the big national real estate firms in Long Island, NY. 70% of Sellers list with the first Agent they speak to, and we find that most Sellers who agree to pay a full 6% commission do not realize that real estate commissions are NEGOTIABLE!
The national average total real estate commission in 2015 was 5.26%.
In New York, you will find the following real estate commissions charged:
Typical Asking Commission: 6%
Competitive Commission: 5.0%-5.5%
Very Competitive*: 4.5%-4.99%
* 4% commission can be negotiated on multi-million dollar properties
Real Estate Commissions are split between the listing Agent (who works for you to sell your home) and what will be offered on the MLS to any Agent that brings a Buyer to buy your home. In a typical 6% total commission, the listing Broker is paid 3% and 3% is offered on the MLS to all Agents working with Buyers (so they can see what they will earn if they bring their Buyer to your home and complete the sale).
When you meet with your listing Agent, also remember that, unless they are a “Broker/Owner”, they will have to split their commission with their employing Broker. High producing Agents can work up to getting 90% of the listing commission from their Broker, but typically less experienced Agents may only receive 50% of the listing commission.
AGENTS ARE WILLING TO BID THEIR COMMISSION RATE TO GET YOUR LISTING...
At ListingBidder.com, we first negotiate on your behalf a competitive real estate commission structure with HIGHLY EXPERIENCED, HIGHLY RECOMMENDED Agents who know your LOCAL market (even YOUR NEIGHBORHOOD); each ready to bid for your business. These Agents are not just ordinary Agents as many of them are broker/owners and they have the best ability to negotiate their commissions and be competitive, in part because they do not have to share their listing commission with the brokerage firm. This is a direct benefit to you and will save you thousands of dollars in real estate commission fees over the typical fees in NY.
I hope this information help and good luck to you in selling your home!