is anyone out there offering a lower commissioIn for selling a home than 6%.?

Asked by Joe-ann Bianco, Cherry Hill, NJ Thu Sep 24, 2009

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16
Voices Member, , Benton County, OR
Thu Sep 24, 2009
BEST ANSWER
Joe-ann

Commissions are negotiable and every Agent has the right to determine the % of Commission they will charge as a fair amount for the services they provide.

When you ask the Question you did then Agents are of course already in Negotiation mode which is why you get the (I would never for less than) (Anyone who takes less than) (Those who take less are incompetent) (Beware of those who would) (Those who take less have no ethics, actually read that on one thread) It's all negotiation, pay my higher commission amount because.
If the best negotiation argument for the higher commission is (We are better because we charge more) then keep shopping, there are many Agents to choose from.

The simple truth is Agents have different Commission amounts they are willing to offer.
The Commission amount does NOT make an Agent Good or Bad nor does it necessarily make the SERVICES offered any less than services offered by an Agent with a Higher Commission.

There are Good Agents and there are Bad Agents that charge Higher Commissions and Lower Commissions, charging a Higher Commission does not give a person Ethics anymore than charging a Lower Commission takes a persons Ethics away....It's just lame to suggest it does..

That being said, if YOU are Selling and your Market is like many others then Selling in a Buyers Market makes YOUR decision even more important if you wish to attain your goals....
You must interview multiple Agents, You must know your Market enough to be able to determine if the Agents you are interviewing know your Market.

If the Commission is your Main determining Factor in who's services you decide to hire this may turn out to be a horrible experience for you because it just one part of the Package.....First find a Good Agent.
2 votes
Debra (Debbi…, Agent, Livingston, NJ
Fri Sep 25, 2009
Joe - to answer your question succinctly - yes, agents are out there offering less than 6%. Some very good agents are offering less, too.

Please don't be mislead by statistics that were shared here, or anyone quoting what "usual" commissions are, as they really are negotiable...............these figures vary from state to state, and area to area within states. They may vary from town to town within an area, too!

Joe - want my opinion?
Well, I will give it anyway!! ha
Interview a few local agents. Just find an agent you have a rapport with, a comfort level, who has a track record, a solid marketing plan , and some excellent referrals from past clients. Sit down, and have a thorough discussion. Perhaps there will be some flexibility in the area of fee..perhaps not...but make your decision based on all the above important qualities. Ask questions.....review the responses. Just don't shop for the cheapest......shop for the best (and it doesn't have to be the agent with the highest commission structure, either).

Dunes - nice job of laying it all out for Joe!


Good lkuck Joe
Debbie Rose
'Prudential NJ Properties
1 vote
Jeff, , Virginia Beach, VA
Fri Sep 25, 2009
Yes.

Read the comprehensive Consumer Reports research from last year. It was a good read and answers lots of questions about realtors.

Here is the web version (not as detailed as the paper version). Click on the light blue links to the other pages:
http://www.consumerreports.org/cro/money/real-estate/real-es…


Excerpt
"You can negotiate the fee. The usual 6 percent commission that agents charge sellers has been standard for so long that many homeowners apparently don’t realize it’s negotiable. But 46 percent of the sellers in our poll attempted to negotiate a lower commission and roughly 71 percent of that group succeeded.

RE/MAX and independent agents appeared to be a bit more willing to deal; 77 and 76 percent, respectively, of sellers who tried to negotiate with them were successful. Sixty-seven percent of Century 21, Keller Williams, and Prudential agents also lowered fees, as did 64 percent of the Coldwell Banker agents.

We found that paying an agent a lower commission rarely had any effect on the sales price. And readers who paid commissions of 3 percent or less were just as happy with their brokers’ performance as those who paid 6 percent or more. People who paid extra, in fact, were more likely to say they had regrets about the selling process. The biggest regret? Nearly one-third said they should have been more assertive in negotiating their agent’s fee."
1 vote
Voices Member, , Benton County, OR
Fri Sep 25, 2009
Joe-ann

You get what you pay for is a cliche, it is often not true and certainly is not some kind of statement to make as if it's fact that proves something or actually supports a position.

I'll say it one more time...The Commission an Agent charges is NOT something that automatically tells you they are a Good Agent or a Bad Agent just like belonging to an organization does NOT automatically tell you they are a Good Agent or a Bad Agent to suggest it is a fact of some kind or a way to determine which Agent you want to work with is just silly.

People sometimes DO NOT get what they pay for, now that is an actual fact...

Real estate Agents compete for business and that is a Good thing for the Consumer as it allows them to shop and compare services offered, it also creates differences in Commissions because of the competition and often causes those who cannot provide acceptable services or adapt to the competition to leave the business.

It's all good for the consumer and is the way most service oriented businesses compete....

Referrals...Choosing an Agent is a vital part of YOUR decision making process as a Consumer so it is YOU that needs to become informed enough to choose wisely as it is your financial situation at stake not the Agents so YOU need to find and select your Agent by knowing what you wish to accomplish...Shop around....

Joe-ann acquiring your Agent by a referral from an Agent you do not know would be foolish and quite possibly disastrous in this type of Financial Arrangement especially if the motivation of the referral is financial gain for the referring Agent...

Here's my opinion in a nut shell....YOU need to learn all you can about the Market area you intend to sell in so you can approach this realistically, You need to make the time to talk with as many Agents/Agencies as possible about their services and requested Compensation so YOU can determine which one best fits what YOU decide is best for YOU. It is important for you to remember that all the cliches "You get what you pay for" are often being used as a negotiation tool to say I charge more so my services are better which is NOT A FACT.. Shop around, ask questions, interview and choose what you feel will accomplish your goals...period

Dunes
1 vote
Keri Ricci, Agent, Cherry Hill, NJ
Thu Sep 24, 2009
The short answer is yes. Everyone who responded has pretty much covered the obvious answers. The most important thing for you to do is to interview more than one agent and to be looking at their ability to deliver the best "net" to you. That is based on marketing, pricing, and staging your home for this market, and their ability to bring buyers to you and negotiate the best deal for you. These are a few of the questions you should be asking: How long have you been in the business? Are you a full time agent? How many houses did you sell so far this year? What is your average days on market? What percent of list price to sales price do you achieve on average?How many of your listings expire? How do you market your listings? This will give you the information that you really want. Its all about the net price and the time, not the stated commission. A 7% commission on a well priced, well staged and superbly marketed property could put more money in your pocket and in less time (and remember that time is money!) at the end of the day than a 4% commission on an overpriced, unstaged and poorly marketed property. Its definitely worth thinking about. I wish you the best in your search and am always available for consultations.
Web Reference:  http://www.keriricci.com
1 vote
William Lock…, , Haddonfield, NJ
Thu Sep 24, 2009
Joe-ann,

I would work for as low as 4% if the house was priced correctly, as I believe many agents would. Agreement on any commission rate gets you the same level of service that customary 6% will get you. The same advertisements, the same IDX access, the same MLS access, the same open houses, the same broker tours, the same craigslist ads, the same Trulia ads, the same Oodle adds, the same signs, the same marketing and advertisement. Period.

What you pay for when contracting with a real estate professional is the result. Bottom line is if an agent takes you on as a client, you become their fiduciary. They have to, by law, act in your best interest at all times. Cutting services is not in your best interest, and you shouldn't work with an agent that isn't going to do everything possible to get your home sold. You pay us for the result. So don't be fooled into thinking that agents who agree to list your home for less than everybody else, are by default planning on spending less money and doing less work. Remember, because there is no agreed upon standard commission rate in New Jersey, there is no such thing as a discount. There is only you, your agent, and whatever terms you come to agreement on.

That being said, I must tell you that the higher the incentive for agents to show your property, the more showings your home will have. Offering 3% to buyer representatives is the best way to get buyers in your home. You might also want to consider a bonus to the selling agent. But at the end of the day, the condition of your home and the competitiveness of how you choose to price it will ultimately be the indicator of whether or not you will have a successful sale.

Good luck.
1 vote
John Sacktig, Agent, New Jersey, NJ
Thu Sep 24, 2009
Hi Joe-ann,

Typically in this type of market when homes are taking longer to sell, marketing costs rise and you will see a rise in commission as companies need to advertise and pay for different forms of media to get your home in the right hands.

That is why, when you do speak to a Realtor, ask to see "in your hands" what will be done to sell your home.
Ask to be cc'd on marketing and advertising. See what your agent is doing for you. I am sure you can get someone to list your home for a lesser amount, but, you get what you pay for.
1 vote
Voices Member, , Benton County, OR
Fri Sep 25, 2009
Thank-You Joe-ann for the Best Answer it is very much appreciated, hope I didn't make you regret your decision with my last comment ; )

Best of luck to you
Dunes
0 votes
Edith Karoli…, Agent, Winnetka, IL
Fri Sep 25, 2009
Hi Joe-ann Bianco
You got a lot of long answers to your questions.
The short one...... Commissions between a listing brokerage/listing agent and the Seller are negotiable.....

But then of course you know, like with everything in life you get (service and efforts and quality, communication and availability) what you pay for.... Slight differences in the commission percentages may not make a huge difference and a truly experienced Realtor may just with the right commission put in more time, more efforts, more financial expenses into the marketing i.e if paid right you will get the service you truly would want! and furthermore that well paid Realtor during negotiations may save you more money than you would with an initial 1/2 % or 1 % less in commission.... Just a thought...
I always say, pay the one who works FOR you, who is in your camp RIGHT.... BUT its still negotiable.....
Hope this helps. Good Luck on your sale.
If for any reason you would like a referral let me know, I gladly recommend to you an experienced area Partner Agent to assist you. Just e-mail me directly to EdithSellsHomes@gmail.com with a little info about your home, your e-mail address, address, name and phone number I will pass that info on to my partner agent and also get you the agent's contact info asap, so you can meet and discuss.
Edith Karoline - YourRealtor4LIfe!
Working always in the very BEST interest of her clients....
EdithSellsHomes@gmail.com
0 votes
Pat & Steve…, Agent, Westlake, OH
Thu Sep 24, 2009
Joe-ann:

I am a Realtor from NE OH, so I am giving an unbiased opinion.

By Federal Law, commissions are always negotiable.

However, I agree, in principle, with the responses of Lorraine Silverman, Joe Montenigro & John Sacktig. You get what you pay for. Interview more than one Realtor. Find out what marketing programs they will provide, have each one of them commit in writing what they will do & hold the Realtor you choose to the plans they agreed to give you.
0 votes
Lorraine Sil…, Agent, Marlton, NJ
Thu Sep 24, 2009
I understand your concern & that you want to negoitate the best deal possible. Commissions are always negotiable but you should understand that when you negotiate a lower commission your agent is not able to provide you with all the marketing tools available to get your home out there to as many potential buyers as possible. Also,, keep in mind that if an agent is quick to lowers theri commssion how will they perform when it comes to negoitating the best price for your home.
0 votes
Joe Montenig…, Agent, Sewell, NJ
Thu Sep 24, 2009
Yes there are always companies and agents who will discount commissions, but if that's your number one criteria for selecting an agent, you're missing the forest for the trees !

Focus on finding the best agent for the job... they're likely to get you the best price and give you good advice and guidance. The cost of picking the wrong agent/company is potentially MORE EXPENSIVE than the few dollars you might save by going with a discounter.

As consumers, we all make many decisions on price vs quality but with a SERVICE you may not know if you picked the wrong provider until AFTERWARDS.... then it may be too late. With such a lot riding on your real estate choices, I woudn't pick the cheapest provider.

Just my two cents.
Hope that helps
Joe Montenigro
Broker Owner, REMAX Home Team
serving Gloucester Twp and Southern NJ
http://hometeamNJ.com
http://joemonte.vflyer.com
http://www.facebook.com/joemontenigro
0 votes
Jeremy S. Hi…, , Cherry Hill, NJ
Thu Sep 24, 2009
Joe-ann,

Commissions in NJ are totally negoiable. Most sellers are concerned about the commissions because they want to net the highest return. The condition of your home will play a large part in this. Call me and we can discuss how you can get the highest return in the shortest amount of time.

Best Regards,

Jeremy S. Hill, Realtor Associate,
Keller Williams Realty
http://www.YourPhillyHomeSearch.com
http://www.SouthNewJerseyHomes.com
Office: 856.685.1651
Direct: 609.876.5817
Fax: 609.482.8235
Licensed PA, NJ
"Your Interest 1st Always"
0 votes
William Lock…, , Haddonfield, NJ
Thu Sep 24, 2009
We will do 4-5% depending on the house being priced at actual fair market value.

William Lockard
Long and Foster Haddonfield
HaddonRealtor@longandfoster.com
856-616-7235

WilliamLockard.wordpress.com
Web Reference:  http://www.wiliamlockard.com
0 votes
Elizabeth H…, Agent, Manasquan, NJ
Thu Sep 24, 2009
All commissions are negotiable and dependent upon the services you want from your agent.
Web Reference:  http://www.dianeturton.com
0 votes
Mel Kim Real…, , Miami, FL
Thu Sep 24, 2009
Not Sure but we now offer 9-12% Commision for Qualified buyers at MEL KiM Investment Properties.
Web Reference:  http://mlkimrealty.com/
0 votes
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