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Posted: 1/19/2006 5:47:51 PM EDT
What is the customary commission for a Real Estate agent? The agent wants 9% and says it won't last long. Seems high, I though most charged 6%.
Link Posted: 1/19/2006 5:57:51 PM EDT
These days it should be negotiable. They need a minimum of 3 1/4 for MLS and anything over that goes to the listing agnent. I sold mine last fall with Edina Realty for 5%.
Link Posted: 1/19/2006 6:00:06 PM EDT

Originally Posted By APBullet:
What is the customary commission for a Real Estate agent? The agent wants 9% and says it won't last long. Seems high, I though most charged 6%.



9%? What are they smoking, crack?
Link Posted: 1/19/2006 6:02:23 PM EDT
Link Posted: 1/19/2006 6:03:12 PM EDT
It is negotiable. 6% is standard but some agents will charge more for a property with a very small market potential, such as houses priced over $1,000,000.
Link Posted: 1/19/2006 6:09:02 PM EDT
The house value is between $145k to $150K and even say its not going to be on the market long. I kind of figured they could get you to sign at 9% they don't want to miss you.
Link Posted: 1/19/2006 6:11:28 PM EDT
I'm with Remax. Here is the breakdown for listing your home.

3.0% to the buying agent.
3.0% to the selling agent.

Out of that 3.0% the selling agent has to pay taxes, dues, office rent and advertising your property. This leaves him with 1.0% "takehome." If the agent is a family member or best friend and offers a discount (5.0% vs the 6.0% standard) accept it. If Joe Shmo off the street offers you a discounted rate, it means he's budgeted a grand total of $0.00 to advertise and promote your property so he can still keep his 1.0%.
Link Posted: 1/19/2006 6:11:49 PM EDT
7% is what we're paying to sell a house right now.
Link Posted: 1/19/2006 6:14:19 PM EDT
9.0% is unheard of. You live in a state where housing is difficult to find, leaving your agent with an even easier job selling your home. 6.0% is a customary rate almost nationwide (some exceptions, NOT Louisiana).
Link Posted: 1/19/2006 6:14:49 PM EDT

Originally Posted By C-4:

Originally Posted By APBullet:
What is the customary commission for a Real Estate agent? The agent wants 9% and says it won't last long. Seems high, I though most charged 6%.



9%? What are they smoking, crack?





I work in real estate and I've never even HEARD of 9%.

Call them back and tell 'em you want to go with "eleventy-teen" and see what they say.
Link Posted: 1/19/2006 6:21:44 PM EDT
I've never seen that for a home, for a lot the standard in my market is 8-10%. That is simply excessive.
Link Posted: 1/19/2006 6:22:06 PM EDT
Whatever they charge, it's always TOO much for what they do!
Link Posted: 1/19/2006 6:29:04 PM EDT
All that said 6% are correct for here in Texas.

Alot of listing agents will cut deals for 4 or 5% and do a selling bonus to the selling agent.

This makes the agent more money and cuts the selling agents broker out of some of the cash, and gives an extra incentive to the agent to sell your house over one that is listed at 6%.

I dated an agent and have a lot of friends that are agents. I used to think that it was a useless industry and the agents were overpaid.

Now I have seen what they do. I wouldn't do that shit for 20%.
Link Posted: 1/19/2006 6:31:20 PM EDT
Try FSBO and save a bunch of money
Link Posted: 1/19/2006 6:42:01 PM EDT
I wouldn't go FSBO. I'm a broker and I charge 6% for used houses and 5% for new houses. For my repeat clients I give them a break to 5%. Anything under that (2.5% per side) is a waste of my time and I won't bother with it. Anyone who does take that kind of garbage listing won't spend a dime on you. If you want to make it go away faster, offer 3% to your listing agent and 4% to the selling agent. You'll have people climbing all over. Or you can do a $2,000 selling bonus if you want. Lots of options, 9% is not one of them
Link Posted: 1/19/2006 7:02:35 PM EDT

Originally Posted By MGNiko:
I wouldn't go FSBO. I'm a broker and I charge 6% for used houses and 5% for new houses. For my repeat clients I give them a break to 5%. Anything under that (2.5% per side) is a waste of my time and I won't bother with it. Anyone who does take that kind of garbage listing won't spend a dime on you. If you want to make it go away faster, offer 3% to your listing agent and 4% to the selling agent. You'll have people climbing all over. Or you can do a $2,000 selling bonus if you want. Lots of options, 9% is not one of them



No offense, but what do real estate agents do that makes them think they still deserve 5 to 7%? They come take a few pictures of your house, write a description and list it? Big deal.
Link Posted: 1/19/2006 7:14:12 PM EDT
[Last Edit: 1/19/2006 7:16:39 PM EDT by shotar]
Link Posted: 1/19/2006 7:17:08 PM EDT

Originally Posted By shotar:

Originally Posted By rcoers:

Originally Posted By MGNiko:
I wouldn't go FSBO. I'm a broker and I charge 6% for used houses and 5% for new houses. For my repeat clients I give them a break to 5%. Anything under that (2.5% per side) is a waste of my time and I won't bother with it. Anyone who does take that kind of garbage listing won't spend a dime on you. If you want to make it go away faster, offer 3% to your listing agent and 4% to the selling agent. You'll have people climbing all over. Or you can do a $2,000 selling bonus if you want. Lots of options, 9% is not one of them



No offense, but what do real estate agents do that makes them think they still deserve 5 to 7%? They come take a few pictures of your house, write a description and list it? Big deal.



And take your and your potential buyers phone calls between 7AM and 11PM, my wife has received calls at midnight. They also advertise your house out of their own pocket, field inquiries draw up contracts and all the necessary legal paperwork and negotiate on your behalf all while fighting with the title and mortgage companies so you don't have to. Perhaps you would have an opinion if you actually knew what you were talking about. My wife left the house on listing calls at 8AM this morning. She walked through the door 5 minutes ago and this is January in Ohio. Not peak season.



I know realtors and I know how it works. That still doesn't explain to me why they deserve 7 percent.
Link Posted: 1/19/2006 7:26:15 PM EDT
[Last Edit: 1/19/2006 7:28:51 PM EDT by shotar]
Link Posted: 1/19/2006 7:29:16 PM EDT
How fast do you need to sell it? If there's not a good reason for that large of a commission, then definitely negotiate. I've seen commissions larger than that a few times, but it was due to the time constraints or very cheap properties. For example, the last girl we hired made almost 25% commission since we were selling 146 houses that were worth less than $20k on average and we needed the cash quickly. Her take was just over $600k. We really hated to spend that kind of money, but she was cheaper than the others (one greedy bastard real estate agent demanded 50%) in town we talked to and I know we would have ever been able to sell them all if we did it ourselves.

I do several hundred tax returns each year, and I'm always amazed at how much real estate agents make. They make more money by far than anyone else I know, and they work less hours than anyone I know that isn't retired. They make way too much, but I can honestly say that after buying and selling a lot of property for friends and work, a good real estate agent is usually worth the money. It's a pain to sell property.z
Link Posted: 1/19/2006 8:07:22 PM EDT

Originally Posted By rcoers:
Whatever they charge, it's always TOO much for what they do!



Thats what I don't understand, why charge a %? They get 6% for selling a $150k and get 6% for a $300k house. I don't doubt its a PIA to sell, but why not a flat fee?
Link Posted: 1/19/2006 8:09:48 PM EDT

Originally Posted By zoom:
How fast do you need to sell it? If there's not a good reason for that large of a commission, then definitely negotiate. I've seen commissions larger than that a few times, but it was due to the time constraints or very cheap properties. For example, the last girl we hired made almost 25% commission since we were selling 146 houses that were worth less than $20k on average and we needed the cash quickly. Her take was just over $600k. We really hated to spend that kind of money, but she was cheaper than the others (one greedy bastard real estate agent demanded 50%) in town we talked to and I know we would have ever been able to sell them all if we did it ourselves.

I do several hundred tax returns each year, and I'm always amazed at how much real estate agents make. They make more money by far than anyone else I know, and they work less hours than anyone I know that isn't retired. They make way too much, but I can honestly say that after buying and selling a lot of property for friends and work, a good real estate agent is usually worth the money. It's a pain to sell property.z

ITs not my house, belongs to the GF. I think since she was alone they tried to rip her off. I don't understand how some people can look at themselves in the mirror knowing how they screw people over.
Link Posted: 1/19/2006 8:21:50 PM EDT

Originally Posted By rcoers:

Originally Posted By MGNiko:
I wouldn't go FSBO. I'm a broker and I charge 6% for used houses and 5% for new houses. For my repeat clients I give them a break to 5%. Anything under that (2.5% per side) is a waste of my time and I won't bother with it. Anyone who does take that kind of garbage listing won't spend a dime on you. If you want to make it go away faster, offer 3% to your listing agent and 4% to the selling agent. You'll have people climbing all over. Or you can do a $2,000 selling bonus if you want. Lots of options, 9% is not one of them



No offense, but what do real estate agents do that makes them think they still deserve 5 to 7%? They come take a few pictures of your house, write a description and list it? Big deal.



Obviously you don't know our job that well then if you think that is all we do. Like any other job, until you walk in our shoes.......
Link Posted: 1/19/2006 8:33:03 PM EDT
LOL,

If you have ever seen a house deal go tits up without a realtor involved then you know why realtors get paid a fair wage. A FSBO deal gone wrong is like watching a trainwreck.. your all set, packed up, other house sold and then bam... no place to live and people start suing each other.

Go with a realtor.

(I'm not one btw)

Link Posted: 1/19/2006 8:45:20 PM EDT

Originally Posted By APBullet:

Originally Posted By rcoers:
Whatever they charge, it's always TOO much for what they do!



Thats what I don't understand, why charge a %? They get 6% for selling a $150k and get 6% for a $300k house. I don't doubt its a PIA to sell, but why not a flat fee?



First some of you guys need to study more & some of you may "know Realtors" but obviously DON'T know how it works. Agents don't always get 6% for example. That's 3% for the selling agent and 3% for the listing agent. Generally, of that 3% the brokerage will take 30%. Then you have 35% set aside for taxes as you're an independent contractor. Then out of what's left, you have your desk fees ($300 per month), legal insurance ($100 per month), phone ($50), internet ($50), and all your advertising ($2,500 per month).
Now if you can dual agent or be a neutral for the entire 6%, good job!
Secondly, do you know how much time, energy, and money it takes to sell a $5,000,000 home as compared to a $90,000 condo? Any idea of the legal expenses one will incur if someone in this sue happy country "thinks" they've been wronged? Real Estate agents & brokers can earn an excellent living, SO? So can a mechanic who owns his own garage and a FedEx driver who owns his own truck. It comes at a high risk (try 100% comission), many hours (I work 80+, 7 days a week), and you're never guaranteed a thing. You can work for months & have a deal go down the tube. Not many people have the guts to tackle a job like this. Most want a nice cozy salary & benefits. If that's your cup of tea, great!

Link Posted: 1/19/2006 8:50:55 PM EDT
[Last Edit: 1/19/2006 8:58:49 PM EDT by XDTom40]

Originally Posted By MGNiko:

Originally Posted By APBullet:

Originally Posted By rcoers:
Whatever they charge, it's always TOO much for what they do!



Thats what I don't understand, why charge a %? They get 6% for selling a $150k and get 6% for a $300k house. I don't doubt its a PIA to sell, but why not a flat fee?



First some of you guys need to study more & some of you may "know Realtors" but obviously DON'T know how it works. Agents don't always get 6% for example. That's 3% for the selling agent and 3% for the listing agent. Generally, of that 3% the brokerage will take 30%. Then you have 35% set aside for taxes as you're an independent contractor. Then out of what's left, you have your desk fees ($300 per month), legal insurance ($100 per month), phone ($50), internet ($50), and all your advertising ($2,500 per month).
Now if you can dual agent or be a neutral for the entire 6%, good job!
Secondly, do you know how much time, energy, and money it takes to sell a $5,000,000 home as compared to a $90,000 condo? Any idea of the legal expenses one will incur if someone in this sue happy country "thinks" they've been wronged? Real Estate agents & brokers can earn an excellent living, SO? So can a mechanic who owns his own garage and a FedEx driver who owns his own truck. It comes at a high risk (try 100% comission), many hours (I work 80+, 7 days a week), and you're never guaranteed a thing. You can work for months & have a deal go down the tube. Not many people have the guts to tackle a job like this. Most want a nice cozy salary & benefits. If that's your cup of tea, great!




Well said sir. We work for FREE alot too (market analysis for those that don't list, deals that fall through, etc.) We also are available 7 days a week, most of us anyway. Phone calls all day and night, work weekends. Always have our cell phones with us. All in all if we sat down and figured what we actually made after all expenses, per hour it wouldn't look as good. Also, don't forget dues in your calculations which is one of our biggest expenses. MLS, association dues and lockbox participation dues are something we have to pay out-of-pocket as realtors. They are expensive.

ETA: I do have fee for service plans where my clients only pay for the services they want. So in other words, flat fees. We do offer a buyer's agent a minimum of 3%, because it won't get shown much if you are less than that.
Link Posted: 1/19/2006 8:54:18 PM EDT
My house last year had a 5% comission
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