what is current realtor commission?

Asked by Lisa, 94304 Thu May 24, 2012

in san jose, ca for house sale.

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16
Michael Cheng, Agent, San Jose, CA
Fri May 25, 2012
While the commission paid to a broker to sell a house is purely negotiable -- just like everything else in life, if you have the skills -- what I've seen in the San Jose market is a range of commissions from 4% to 7%. It all depends on what you want to achieve.

Selling real estate AND closing a deal is tough work. Otherwise, few us of would be needed. If you are familiar with the process and can make the sale easier on the broker, then I can imagine you would be able to negotiate a lower rate.

But, just getting a low rate doesn't automatically mean you'll save money. You may just pay it another way, with lower offers.
Web Reference:  http://www.archershomes.com
3 votes
Debra (Debbi…, Agent, Livingston, NJ
Fri May 25, 2012
Pssst - Jen and Deb - better read up on federal anti trust laws!

Legally (and in reality) there is no such thing as "typical, normal, customary, or usual" commission fees.

The only legal and correct response to a question like this, is..... all comissions are negotiable!

To attach the word "typical or normal" to a certain commission in a public forum may give the very illegal impression that you are trying to set fees.

That's not a good thing to do.
1 vote
she said "typically" and I don't see anything wrong with her response.
Flag Tue Jun 19, 2012
charles butt…, Agent, san jose, CA
Fri May 25, 2012
Thank you for your question Lisa:

There is no curent or established REALTOR commission, or Brokrage Fee.

The Brokerage Fee (commission) that a REALTOR will charge for the sale of any particular property is affected by a number of factors. For example, among the most important factors are: how much work will it take for the listing agent to sell the property? How much will the listing agent have to spend marketing and advertising the property? How long will it take the listing agent to sell the property? What services does the homeowner want the listing agent to provide? Does the homeowner want the listing agent to arrange to have the property staged? Every REALTOR has different policies with respect to what services the REALTOR will provide and how much that REALTOR will charge for those services.

Essentially the Brokerage Fee (commission) is not set. The Brokerage Fee is negotiated by the REALTOR and owner of the property to be sold.

Thank you,
Charles Butterfield MBA
Real Estate Broker/REALTOR
American Realty
Cell Phone: (408)509-6218
Fax: (408)269-3597
Email Address: charlesbutterfieldbkr@yahoo.com
DRE#00901872
.
1 vote
Andrea Wince…, Agent, Milpitas, CA
Thu May 24, 2012
Hello Lisa, Realtor commissions are not set by law and are negotiable. Buyers of real property do not pay any commissions. It is the seller (you) that will pay for your listing agent and you also pay for the agent who brings the buyer. In your listing agreement, the listing agent charges a percentage and then usually splits that equally with the buyers agent on your behalf. For homes in a higher price range, the commission should be less percentage as compared to a lower price range, for instance a small condo vs. single family home. You should contact a few agents directly (including me) to find out what they would charge to list and sell your home. Please contact me through my Trulia profile if you would like me to email you a complimentary CMA (Comparative Market Analysis) for your neighborhood. This will help you with your pricing strategy. Kind regards.
1 vote
Terri Vellios, Agent, Campbell, CA
Thu May 24, 2012
You heard it, Commissions are Negotiable.

When interviewing agents you can ask them to print out the MLS showing what is offered to the Buyer Broker Side. Depending on house price, location, etc. these usually range between 2.5% to 3.5%. Then the other side is what is paid to the Listing Agent.

Keep in mind why would you pay your LISTING Broker anything less than you would offer a Buyer's Broker. After all, you probably want them to; have a high level of skill, experience, education; Project Manage, Provide Risk Management to you, and Negotiate a great offer through closing.

As the other agent said many of the discount agents have closed up shop. When that happens if someone decides to sue the Seller sometime in the future who are they going to go after? A long gone Broker or the Seller?

You get good and bad in all price points. I suggest you focus on what is most important to you when it comes to selling your home and communicate that with the Broker you hire. Focusing on the commission up front probably isn't your biggest concern when you write down your goal for selling.

Make it an amazing day!
Web Reference:  http://www.terrivellios.com
1 vote
Edith Karoli…, Agent, Winnetka, IL
Thu May 24, 2012
I wish there would be one simple all covering answer, there is NOT.
Commissions for real estate services differ by region, by cities and by each and every brokerage, and
also by the services that will be provided. IN OTHER WORDS COMMISSIONS ARE NEGOTIABLE....

So talk to a few Realtors in your area and see what their services include and what their commission rate is going to be...... Remember also that you usually get what you pay for, and the same goes for
real estate services.

If you need a recommendation for Realtors in your area get back to us.

Good Luck to you and have a great Day :)
Edith YourRealtor4Life! Working always in the very BEST interest of her clients
with @Properties covering the city of Chicago, N and NW suburbs of N. Illinois, and the
fine homes on the North Shore - and with partner agents all of the US and properties worldwide
EdithSellsHomes@gmail.com
1 vote
Laura Coffey, Agent, Santa Clarita, CA
Thu May 24, 2012
Commission is always negotiable. There is no set fee. Some broker's charge a flat fee (you get what you pay for) and some charge a commission.
1 vote
Mark, Agent, Oceanside, CA
Wed Mar 9, 2016
We find the best way to compare commission fees is to put them out there on the open market and let the market speak. That is why we created ListingBidder.com; a free service for Sellers who can invite realtors to submit their marketing plan and commission structure. It is a patent pending process that is saving Sellers thousands. We are finding that most bids are coming in between 4% and 5% with a few below and above those rates. The best way to tell for sure is privately get bids at: https://www.ListingBidder.com Good luck!
0 votes
Lisa, , 94304
Mon May 28, 2012
Thanks for all your responses!
0 votes
Lisa, , 94304
Mon May 28, 2012
Thanks for all your responses!
0 votes
Edith Karoli…, Agent, Winnetka, IL
Sat May 26, 2012
Oh my, I do not know how often we get this question.
There is none. Commissions are negotiable, each real estate brokerage, and Realtor based on the
services provided for each particular listing determine and negotiate the commission percentage.

There is not all over general fee!

So connect with Realtors and ask them, not only for their commission fee for a listing, but also what
that fee includes as far as their services go, remember like with everything else in life YOU USUALLY GET WHAT YOU PAY FOR.


Good Luck to you...
EdithSellsHomes@gmail.com
YourRealtor4Life! Working always in the very BEST interest of her clients, Buyers, Sellers and
Investors alike. I cover the city of Chicago, all N and NW suburbs of Northern Illinois and the fine
homes of the North Shore with @Properties Brokerage.
For general information, free market evaluations, free information for buyers, just e-mail me.
I provide with partner agents real estate services anywhere in the US and worldwide.
0 votes
Edith Karoli…, Agent, Winnetka, IL
Thu May 24, 2012
simplest answer is, There is no current realtor commission. and that is the truth
Commissions are negotiable and make sure you check the services that will be performed
when looking at the commission %, it is true for Realtors and Real Estate SErvices, YOU GET WHAT YOU PAY FOR.

EdithSellsHomes@gmail.com YourRealtor4Life Working always in the very BEST interest of her clients Buyers Sellers and Investors alike, covering for @ Properties Brokerage the city of Chicago, all N and NW suburbs and the fine homes on the North Shore, and all of the US and worldwide offerings with my partner agents.... Edith speaks several languages ....
Have a great day :)
0 votes
James Mauldw…, Agent, Saratoga, CA
Thu May 24, 2012
Fees are negotiable and there are fees that are common. When listing a home the seller negotiates two fees. The fee the listing agent will receive and the fee the buyers agent will receive. Once a seller decides on the fees in writing they become non negotiable. The amount stated in the mls is final. On a regular sale fees generally range between 2.5% -4% to the buyers agent and the listing agent can get 3% +|- depending on the negotiated fee between the seller and the agent. There are still discount brokers who offer lower fees and rebates to attract clients as well. Although, there are quite a bit less of them. Over the past 10 years many of the discount brokers closed up shop. Sellers generally pay 7.2-7.4% of the sales price to sell your home. Fees, transfer taxes, title insurance. This does not include home inspection report, termite report, home inspection and chimney inspection. Fees always become the issue in the absence of value.

Jim Mauldwin
Intero Real Estate
408-863-3020
DRE # 01125380 since 1991
Web Reference:  http://jimmauldwin.com
0 votes
Gail Thomson, Agent, Los Gatos, CA
Thu May 24, 2012
By law there is no set commission rate. Every company and individual is free to charge what they wish for their service. As with any service industry you get what you pay for. 5-6% is common but there are also "discount" brokers offering lower fees and "premium" services charging more.
0 votes
Of course, the above is meant as a a general comment, there are exceptions to every rule. :)
Flag Thu May 24, 2012
Grace Hanamo…, Agent, Cupertino, CA
Thu May 24, 2012
Hi Lisa,

Thanks for you post. There is no "standard" commission for Realtors and commissions are always negotiable. However, commission percentages can range from 1.0 to 3.0 for the listing agent and 1.25 to 3.0 for the buyers agent. For sellers, this can result in a total commission of between 2.25 and 6.0 percent--everything depends on what you negotiate with sales representative.

Our firm provides rebates to buyers and low cost listings for sellers, so if you are interested in selling your home and maximizing you return on your home investment in a purchase or sale of a home, please feel free to give m a call.

Sincerely,
Grace Morioka
Area Pro Realty-Peoples Choice
Tel 408-426-1616
0 votes
David Nguyen, Agent, San Jose, CA
Thu May 24, 2012
The standard commission is 3 percent to listing agent and 3 percent to selling agent. But I am seeing there are more 2.5 percent to listing agent and 2.5 percent to selling agent.

visit http://www.sellingbayarea.com to learn more.
0 votes
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