Realtor commission...how much?

So I had a Realtor come to my house so we could start the process of putting it on the market.

they told me they do 5% commission and that is the new normal?!?!

true?

Realtor commission...how much?

wait 5% each??

it should be 3 & 3 ?

Re: Realtor commission...how much?

I listed my home with an agent for 4%. Each realtor received a 2% commission when the house sold.

Re: Realtor commission...how much?

4-6% is pretty normal. Your agent should split it with the buyer's agent. Make sure it's in the contract.

Re: Realtor commission...how much?

4-6% is the norm in NY

Re: Realtor commission...how much?

We listed and it is 5% where the realtors split it 2.5 % each.

Re: Realtor commission...how much?

I just used a realtor with 4%. I would not go with someone asking 5%.

Re: Realtor commission...how much?

5-6% out east

Re: Realtor commission...how much?

I sold in nassau and am buying now in nassau, and both times it was 4% total, 2 and 2. If the realtor finds his own buyers, then it's 3%

Re: Realtor commission...how much?

We sold our apt in June, it was 4%

Realtor commission...how much?

i was told that 4% was lowballing the realtors and they may not put as much effort in (this was by a sellers agent referring to the buyers agents)-- true or BS?
(this is out east- suffolk)

Re: Realtor commission...how much?

My service fee is in the range that others have mentioned. It varies depending on certain factors, such as what type of property it is, where it is, the circumstances of the sale, the work entailed (for example, my fee is often higher on a co-op sale, a short sale, etc.).

5% is totally within the realm of average on LI.

Of course, you can always try to negotiate.

I just want to raise the point that, when you are discussing real estate fees, realize that you are paying for a service. So while fee may factor into your decision of who to use, it shouldn't be the ONLY consideration. I mean, when someone says "I wouldn't pay more than x" to a listing agent -- You mean you would rather have a subpar agent list your house for a percentage point less than an agent who would do a better job with marketing, negotiating, communicating, etc.?

I am not saying that every agent who charges a lower fee is a bad agent, and every agent who charges more is worth it. But I see a lot of posts on hear about people who are dissatisfied or disappointed with their real estate agent. So I am just saying choose carefully, and look at the value you are getting, not just the fee an agent charges. Say the average home on LI is worth $400K... a 1% difference is $4,000. You may easily get that back and more with an agent who has a strong marketing plan, who has great negotiating skills, and who is going to work hard for you versus someone who will charge a lower fee but may not be able to get you top dollar for your house or may not be willing to work as hard or have the experience to handle the complexities that may arise.

Also, I look at it this way - in my former career, I was an attorney, and I know my law clients who were being sued or needed to sue someone didn't select my firm because it was the cheapest (it wasn't). They chose to be represented by attorneys who would do the best job and were the most qualified to handle their needs. Just as most people wouldn't choose the cheapest doctor to perform surgery on them. Yes, the stakes aren't quite so high with real estate, but it's still the same principle of choosing a professional to perform work you need, and for most, their house is their biggest financial asset.

So that's my PSA for, let fee be a factor, but not necessarily the driving factor when selecting an agent. Look at qualifications, track record, professionalism, your comfort level with the agent, etc.

ETA - That while there is a range of normal for real estate agent fees, there is not one fee that everyone charges or should be charging in any given area. That would constitute price-fixing, which is illegal under the antitrust laws. So every agent charges an amount that they choose and they set, just like any other person who performs a professional service in any industry.

Message edited 9/23/2014 9:20:33 AM.

Realtor commission...how much?

ok, i always thought it was 4%.

i have no issue with 5% if i really like the realtor. i have an issue with the way it was presented to me....she right away goes "i have a 5% commission. its easier for me to get other realtors in here to see it if i offer them 2.5%"

how about....you price my house correctly and advertise it and i make it easy to show and do everything you tell me to and thats how we get them in here?!

Re: Realtor commission...how much?

Re: Realtor commission...how much?

Re: Realtor commission...how much?

as an agent I never bought that an extra .5% is going to make other agents show the house more

I show my clients the house they want to see or I think they should see- my commission is not a factor

I wouldn't want to work with an agent that is driven to show my listing for an extra .5%

Re: Realtor commission...how much?

Re: Realtor commission...how much?

I have bought and sold several houses over the last 10 years. I would recommend 4% MAX otherwise find a different realtor.