JustTheD asked:
I am selling a house. My agent asked for a 6% commission [3% for buyer's adent's 3% for the seller's]. I think that is too high. Is there room to negoiate this arrangement? Three years ago, she was my buyer’s agent and behind the scenes, go herself a 4.5% commission on a $300K purchase. Now, in a buyer’s market in RDU, NC, can ask that she settles for 1.5%?
Also, if I offer the buyer’s agent a 4% commission, can I insist that the agent gets the additional 1%, instead of the real estate agency? I want to motivate the buyer’s agent, but don’t want to dilute this with the agency. However, the agent is an employee of the company, so i doubt that this will go over.
I signed the paperwork, with 3% to buyer’s agent, 3% to sellers. The house is not moving. Granted the market is lousy. I wanted to motivate the buyer’s agent to sell my house. My seller’s agent is holding an open house, an opportunities for nosy neighbors to see my house. As of yet, she has not paid for anything more that a $300 MLS (which I had for one month too).
My friend has an MBA and delivers pizza’s, so don’t get too soobing with stories. BTW, why are RE commissions 6% in NYC [CPI 350%] & 6% in RDU [CPI 110%]? My salariy is only 30% different. Most other businesses people don’t triple their margins based on the market.
Actually, I have a great deal on my interest rate lock which I will lose by selling the house. I was thinking of offering a 5 year lease (with an option to purchase program, allowing 50% of the rent to be used towards a fixed current price). Does that make sense, because I live far away and don’t have anyone who can look over the house & tenants.
HomeBuilderNC
I am selling a house. My agent asked for a 6% commission [3% for buyer's adent's 3% for the seller's]. I think that is too high. Is there room to negoiate this arrangement? Three years ago, she was my buyer’s agent and behind the scenes, go herself a 4.5% commission on a $300K purchase. Now, in a buyer’s market in RDU, NC, can ask that she settles for 1.5%?
Also, if I offer the buyer’s agent a 4% commission, can I insist that the agent gets the additional 1%, instead of the real estate agency? I want to motivate the buyer’s agent, but don’t want to dilute this with the agency. However, the agent is an employee of the company, so i doubt that this will go over.
I signed the paperwork, with 3% to buyer’s agent, 3% to sellers. The house is not moving. Granted the market is lousy. I wanted to motivate the buyer’s agent to sell my house. My seller’s agent is holding an open house, an opportunities for nosy neighbors to see my house. As of yet, she has not paid for anything more that a $300 MLS (which I had for one month too).
My friend has an MBA and delivers pizza’s, so don’t get too soobing with stories. BTW, why are RE commissions 6% in NYC [CPI 350%] & 6% in RDU [CPI 110%]? My salariy is only 30% different. Most other businesses people don’t triple their margins based on the market.
Actually, I have a great deal on my interest rate lock which I will lose by selling the house. I was thinking of offering a 5 year lease (with an option to purchase program, allowing 50% of the rent to be used towards a fixed current price). Does that make sense, because I live far away and don’t have anyone who can look over the house & tenants.
HomeBuilderNC
LSmith
How bad do you want to sell the house?
In a crowded RE market, which house will sell first? the one with a reduced commission or the ones selling at full commission? If your agent has 20 houses listed, all pay full commission except yours, which ones will she show first? Probably not yours. I’m not sure you’re in a good position to negotiate; consider paying full commission then if a buyer wants to play low-ball with you, negotiate the Realtors commissions. They’ll understand a percentage of something is better than 100% of nothing.
Usually if you offer a bonus to the buyers agent, they get it. Again it would depend on the agents contract. Good luck.
No where is an agent’s commission written in stone until after it has been agreed to.
However, 6% is typical for CA. And yes, that commission is split between between the agents for both parties. You can try to negoitate it to reduce it, but your agent may just walk away…
HomeBuilderNC
Tell your agent you want a 5% commission which is 2.5% for each side. Tis probably the lowest she will go and no you can not offer an additional 1% to the agent only because in reality, the 5% commission goes to the Broker first, and after the agents fees are paid to the office, then the agent gets the rest of the commission which can be 1.5% depending on fees. That is why she is asking for 6%. Also note that in some states seller is responsible to pay the commission not the buyer unless stated in the original Purchase Contract.
LSmith
Most everything is negotiable with your agent, until you’ve executed a binding listing agreement.
If you feel as a previous poster indicated, that your agent may not show your home unless she’s offered a full 3% on her side, then it’s time to get a new agent. Clearly she would be in violation of the Code of Ethics and likely her state’s regulations as well if she executed the listing agreement giving her a fiduciary relationship with you and then failed to act appropriately afterward.
If it’s a buyer’s market as you state, and you have a time frame in which to sell, make sure if you give full commission that you receive good exposure….multiple web sites, ample marketing efforts, agent tours, and good advice (selling AS-IS, liability reduction language in the contract, etc). You could also make a full commission for your agent contingent upon some event, such as the production of an approved buyer within XX days, months, etc.
Best of luck.
LSmith
Can you live on one third of your income?NO ,I did not think so.Have a little more respect for the professional Realtor and let them do their job.
HomesInGreenville
6% is standard. I would not go lower then 5 or no one will show your house, there are many others available to show and sell.
You can not dictate how real estate agencies handle their comissions. That is a contract between the agent and their company. However, you can offer a specific cash bonus, that is theirs thru escrow but not a commission.
I would not offer the selling agent 1.5%, this may not cover all of her cost. Advertising is not cheap, plus she will devote many hours contacting her connections, trying to hunt down a buyer. Selling in ths market is not easy, give them some credit.
HomeBuilderNC
Ok here it goes im sure to get alot of grief over this, But all your answer’s from your Question are coming from a bunch of money hungry Realtors….All Comissions are set by the “SELLER” Me as a Investor I handle my own contract’s, and yes Realtors I have a RE License, But I tend to make Money As an Investor Rather then Make money for Investors. So if He/She is charging you 6% Commission and your ok with it no Problem, But if you wish to SALE your HOME ASAP. Tell her to change the Contract and Give more Commission to the Buying Side….. Example ( 2% to your Realtor 4% to the Buying Side)………