Listing Agent fee of 5% Good/Bad?

Just spoke with one real estate lady from coldwell. She initially wanted 6% but talked her down to 5%. Is this good? Or can I get better? I'm really only looking at big name national real estate companies. Wondering if this number is good.

BTW- Thanks board members for teaching me that listing agent fees are neg.

Re: Listing Agent fee of 5% Good/Bad?

I think that seems high. I paid 4% 2 years ago.

Re: Listing Agent fee of 5% Good/Bad?

Re: Listing Agent fee of 5% Good/Bad?

I think 4-6% is pretty standard. We paid 4% this summer (with ReMax).

Re: Listing Agent fee of 5% Good/Bad?

I charge 4%...unless it's a short sale

I wouldn't be so hung up on brand- review the marketing plan and the agents record

Re: Listing Agent fee of 5% Good/Bad?

4-5% is reasonable. By paying on the higher end your agent could offer out a higher commission to the selling agent then the standard 2%. This might help get more traffic in to your home and help you to sell faster.

Re: Listing Agent fee of 5% Good/Bad?

I think you need to look at not just the service fee, but the VALUE you are getting for that fee.

What services, skills, and marketing tools is the agent bringing to the table to ensure you get the maximum amount possible for your home? It's like, if you are looking for a lawyer or a contractor or anyone who provides a service - you don't necessarily just want the cheapest, you want someone who will do the best job and give you the most bang for your buck!

I don't really think you care about what fee you are paying, I think you care about you bottom line (how much money you are getting at the end of the day). Say, for example, you list your home at $450K. If someone who charges you 5% is a top notch negotiator with innovative marketing tools and the ability to bring in more buyers, they can maybe get you $445K for your house. A weaker agent who charges less may do the bare minimum promote your listing and lacks basic knowledge and negotiation may push you to take a $430K offer. If you had to pay the better agent 1% more, you still wind up with about $10K more in your pocket with the better agent who charges more (you net around $422K v. $412K).

Not all realtors are equally competent and equally hard working. It's like any other profession.

All that being said, I think 5% is well within the normal range of realtor commissions on Long Island, which can vary depending on the type of property, the seller's motivation/pricing, the marketing plan, etc. It's certainly not absurdly high or at the extreme end of the spectrum.