What's the lowest commission I can select for each party when selling/listing a home?

Asked by AllHat812, 34772 Mon Oct 28, 2013

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8
Antonio Vega…, Agent, Saint Cloud, FL
Mon Oct 28, 2013
BEST ANSWER
Most agents will walk away from taking a listing at 4% (2 seller/2 buyer), 5% there are some of those out there, homes get shown some, 6% home gets shown at a normal market rate for the area, 7% (3.5 each side) home gets shown more than average because every agent wants a chance to sell it. Even better if you negotiate a 3% selling / 4% buyer ....then you will have a line of agents with buyers outside your door. So the real question should be...how soon do i want to sell and for how much. Since the more people see it the best chances of getting a higher price on it do to competing buyers.

Didn't your agent told you all this?
0 votes
Tony is absolutely correct. And its not just your area, we have a shortage of inventory everywhere. We're putting thing on the market, and if priced correctly, they're lasting less than a few days on the MLS before getting multiple offers.
Flag Tue Oct 29, 2013
Yes and thank you! Since the inventory in my area is low we will be selling with the 6%.
Flag Tue Oct 29, 2013
Paul Antonel…, Agent, Kissimmee, FL
Mon Oct 28, 2013
Sorry you're having a hard time getting a straight answer, commissions are such a touchy subject for many agents. Lowest I've done is 2% on each side.
1 vote
Melissa Doerr, Agent, Tonawanda, NY
Sun May 4, 2014
6% is average...3% to each side. If I bring a buyer to my own listing, i will often negotiate it down to 5%.
0 votes
Terry Bell, Agent, Santa Rosa, CA
Thu May 1, 2014
Your question should be, what realtor can bring me the highest price for my beautiful home! Agents earn their commission by hard work advertising, doing open houses, photos, marketing and networking to try and get you the best price, and of course, they would like to be rewarded for their hard work! And the agents bringing their clients also work hard to find properties and then try and negotiate with the listing agent. Paying a good commission shows respect for this hard work, and really is an indicator, that you are not interested in low ball offers!
0 votes
Donald Ruizzo, Agent, Saint Cloud, FL
Fri Nov 1, 2013
That is an interesting question. Commissions are not set by law, but by each individual brokerage. If you are a buyer and your Realtor is showing you homes based on how much money they will make, find a different Realtor. Realtors who consistently show homes based solely on their commission are not looking out for the customer's needs. If a Realtor is finding the best property according to each buyer, they will be making a good living. Commissions may be great, or not-so-great, but there will be plenty of them! As for listing a home, we are a full service real estate company, but we charge less. We work in your zip code, let's get together.
0 votes
, ,
Mon Oct 28, 2013
I take it you do not earn a living in sales… OR your home is such a killer, over-the-top, hot property you don’t really need help, just a little guidance. If that isn’t the case a better question is how much of a bonus is too much to offer a Realtor, good luck,

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
I answer questions about financing real estate based on my decades of experience dealing with mortgage underwriters. This answer is my personal opinion, has not been reviewed or approved by the company I work for. I do not offer legal or tax advice, if you need answers from an attorney or CPA find one knowledgeable in your local market.
Web Reference:  http://jamessimms.com/
0 votes
Jim, your assumption is correct, AND it is a hot property...just need a little guidance. :)
Flag Mon Oct 28, 2013
, ,
Mon Oct 28, 2013
Tim is right, you can try to negotiate any commission rate you like.

However, that doesn't mean you will get the best representation for your home because as the saying goes "you get what you pay for"

Saving 1% or 2% on the sale of your home sounds great and can represent thousands of dollars, but if it means that the best Realtor is not representing you then this could cost you much more in the end. The truly good agents earn their commissions in terms of attracting qualified offers and helping you choose the best one that is most likely to close. A bad agent does nothing but put your home on the MLS and field inquiries. If you select an agent based strictly on how little they are willing to work for, then you could wind up with someone who has no idea what they are doing and how to negotiate the best price for your home.

That's not to say that all discount realtors do a bad job. I'm sure there are good ones out there. But all I'm saying is that you should look at the big picture. If it were that easy to negotiate the waters of a real estate transaction today, then everyone would be doing it. And if a great Realtor can help me get 2 or 3% more for my house than a random scmuck, then I'm not going to fight him or her when it comes time to pay.

Good luck!
0 votes
Tim Moore, Agent, Kitty Hawk, NC
Mon Oct 28, 2013
You can negotiate any commission you want. There are no set rates. Each real estate company will decide what commission rate they will accept, you just have to ask them what it is. You only need to worry about one commission, the listing company you work with will take a portion of the commission you pay them and give it to the other side (the buyers agent side), you don't do it.
0 votes
Are you the buyer or the seller? Buyers don't pay the commission it is part of the listed price.
Flag Mon Oct 28, 2013
Yes, that's correct.
Flag Mon Oct 28, 2013
So is the listing company commission the total of both the seller and buyer's commission? So if it's 3% each, I'd hand over a check for 6% and my person pays the other agent their 3%?
Flag Mon Oct 28, 2013
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