What is the standard commission for an agent selling a $2.2 to $2.5 mm house in the Bay Area?

Asked by Newseller, Bay Street Viaduct Area, Savannah, GA Mon Apr 28, 2008

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Alan May, Agent, Evanston, IL
Tue Apr 29, 2008
Standard commissions for a full service broker are generally 5% to 6%.
No such thing! There are no "standard" commissions for full service, flat fee, limited service, or any other kind of service.
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John Peterson, , 95003
Mon Apr 28, 2008
According to California law, real estate commissions are negotiable. The percentage that a brokerage firm tries to negotiate is not necessarily related to the price. An upscale home in the range you described would probably require a more extensive and therefore costly marketing campaign. Keep in mind that the listing commission is usually split between the selling broker and the buyer broker. Standard commissions for a full service broker are generally 5% to 6%.
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Alan May, Agent, Evanston, IL
Mon Apr 28, 2008
There is no average, standard, norm, regular or usual commission. Each agent, and each agency sets their own commission, based on which services they offer. That applies to $150,000 condos as well as $2.2 and $2.5 million dollar homes!

There are many flat-fee services that offer minimal service, but will put you on the MLS for as little as ZERO dollars, on up... Some limited-service agencies will charge a minimal commission (maybe 1-2%) but have you do most of the work. Some agencies will rebate a portion of the buyer's-side commission to you, and offer limited services, and then there are full-service agencies, whose services run the gamut, and so do their commissions.

I had a client who told me that the standard commission in Chicago (yes, she meant the entire city of Chicago) was 5%, because she had spoken with a half dozen agents, and that's what they'd told her. I personally know full-service agents who charge 4.5%, and I know agents who routinely get 8%... both sets of agents have regular repeat business, so their clients must be happy.

There are lots of business models available for real estate agents/agencies... you just have to decide how much of the work you're willing to do yourself, in order to save some money.
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