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neenie
Member since 5/05 22351 total posts
Name:
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Real Estate Agent's fees? (especially if you sold your house lately)
Just curious- what fee (%) did you pay to the RE agent? I'm in the very early stages of research and wanted to see what the current experiences were.
Thanks!
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Posted 4/5/12 9:37 PM  |
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Prudential Douglas Elliman Real Estate
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FirstMate
My lil cowboy
Member since 10/10 7790 total posts
Name:
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Re: Real Estate Agent's fees? (especially if you sold your house lately)
Currently we have 4% which is the "family rate" apparently which is weird because we aren't family. In fact, I wouldn't really consider us friendly either but whatever. I'll go with it.
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| Posted 4/5/12 11:32 PM |
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JandJ1224
Member since 6/06 5911 total posts
Name:
Jannette
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Re: Real Estate Agent's fees? (especially if you sold your house lately)
Rates are usually between 4-6%. 4% would be the most common
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| Posted 4/6/12 8:25 AM |
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neenie
Member since 5/05 22351 total posts
Name:
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Re: Real Estate Agent's fees? (especially if you sold your house lately)
Thank you! Trying to figure out if it would be worth attempting FSBO first(which I would need to research like crazy) or if it's worth it to pay a ridiculous amount of money so that I don't need to deal with it 
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| Posted 4/6/12 4:45 PM |
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ANR1211
My loves
Member since 2/11 2131 total posts
Name:
A
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Re: Real Estate Agent's fees? (especially if you sold your house lately)
I have a unique situation, but might be worth looking into. DH & I started looking for houses before we put ours on the market. We looked with an agent and she thought she had a couple who would be interested in our house because they were looking in our price range and neighborhood. Even though our house was not on the market, she brought them by. They loved it and put an offer in. She's charging us 2% commission because there was no marketing done on our house! Maybe you can get a real estate agent to show you houses and ask that agent if they have buyers in mind for your house. It might work out the same and it saves SO much money! HTH
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| Posted 4/6/12 6:26 PM |
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-Lisa-
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Member since 5/05 6530 total posts
Name:
Lisa
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Re: Real Estate Agent's fees? (especially if you sold your house lately)
4% (when we bought/sold in August)
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| Posted 4/6/12 7:04 PM |
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bikramaddict
mommy-to-be
Member since 8/06 4376 total posts
Name:
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Re: Real Estate Agent's fees? (especially if you sold your house lately)
4% is average
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| Posted 4/6/12 8:59 PM |
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Serendipity
Summer!
Member since 4/07 7631 total posts
Name:
PrayingWishingHopingALOT
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Re: Real Estate Agent's fees? (especially if you sold your house lately)
Posted by ANR1211
I have a unique situation, but might be worth looking into. DH & I started looking for houses before we put ours on the market. We looked with an agent and she thought she had a couple who would be interested in our house because they were looking in our price range and neighborhood. Even though our house was not on the market, she brought them by. They loved it and put an offer in. She's charging us 2% commission because there was no marketing done on our house! Maybe you can get a real estate agent to show you houses and ask that agent if they have buyers in mind for your house. It might work out the same and it saves SO much money! HTH
Thats awesome! We had a similar situation the first time around ..not exactly the same but similar...this time...not so much 
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| Posted 4/7/12 8:22 AM |
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Re: Real Estate Agent's fees? (especially if you sold your house lately)
Posted by bikramaddict
4% is average
I wouldn't say 4% is average -- I'd say it's the minimum that most professional realtors who work for establish companies can take IF you want your home listed on MLS.
On Long Island, it is standard to offer out at least 2% to a cooperating agent (i.e., an MLS member agent other than the listing agent who may show the home) to give them incentive to show the home to buyers. Sometimes, more compensation is offered. But if you offer less than 2% out to cooperating agents, you are really putting your home at a competitive disadvantage to other homes.
So assuming the listing agent will be offering out a minimum of 2% to other agents, most listing agents will want at least 2% also. The listing agent and his/her broker are the ones who incur all of the marketing costs and do all of the work associated with listing and marketing the property. They are spending this money and working for free unless and until the property sells, so there's some risk involved. If an agent agrees to take less than 4%, I would really want to know how they will market the home, service you as a seller, and how much they will offer out to a cooperating broker.
It is common for listing agents to charge more than 4%, depending on the property and the circumstances. If the home requires unique, specialized marketing (e.g. a historical home) or if the seller won't agree to price the home correctly, for example, the agent may charge a higher fee.
There is really no one "standard" service fee - it's all negotiable and dependent on the particular property, parties involved, and situation.
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| Posted 4/7/12 12:31 PM |
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Re: Real Estate Agent's fees? (especially if you sold your house lately)
Posted by ANR1211
I have a unique situation, but might be worth looking into. DH & I started looking for houses before we put ours on the market. We looked with an agent and she thought she had a couple who would be interested in our house because they were looking in our price range and neighborhood. Even though our house was not on the market, she brought them by. They loved it and put an offer in. She's charging us 2% commission because there was no marketing done on our house! Maybe you can get a real estate agent to show you houses and ask that agent if they have buyers in mind for your house. It might work out the same and it saves SO much money! HTH
This can and does happen, but most of the times realtors will focus on MLS listed properties where they are guaranteed payment of their fee. Agents who have buyer broker contracts with buyers can show their buyers any properties - for sale by owners, expired from MLS listings, etc. and be guaranteed to be compensated, but those that don't have buyer broker contracts are in a weaker position.
Also, you are really narrowing your buyer pool if you go this route. I work with a lot of buyers, but I don't necessarily have a buyer who is perfect for every type of house, every price point. In addition, if you need to sell your home before you can buy another, I wouldn't want to spend time showing you homes until you were under contract on your current home. I would consult with such potential buyers, but I would be suspicious of a realtor who spends a lot of time showing homes to buyers who aren't curently ready and able to buy.
You have to think not just about the percentage fee, but the amount of money you net at the end of the day, which I think is what every seller really cares about. If you list the property with an agent, you are exposing it to many more buyers than if you try to sell it on your own or entice one or two specific agents to show it to their buyers. And the more buyers that come through the door, the greater chance you have of getting your highest possible price in this market.
Say, for example, you speak to an agent who is showing you homes and you want to sell your house for $400K. Maybe that agent brings by a couple of buyers, and you get lucky and they offer you $370K. Since no one else has seen the home and you don't have other showings scheduled, you take the $370K and pay out 2%, which is $7400. You net $362,600.
Now what if you list if and agree to pay 4%. You have many showings and may get multiple offers. Say you get someone willing to pay $390K for your house. You pay out 4% ($15,600) and net $374,400.
So you wind up getting $12,000 more in the scenario where you list and expose your home to more buyers.
That's just an example obviously, but you get the idea. It's not just about the fee, but about how a realtor and good marketing can net you MORE money despite paying the fee.
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| Posted 4/7/12 12:46 PM |
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Diane
Hope is Contagious....catch it
Member since 5/05 30683 total posts
Name:
D
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Re: Real Estate Agent's fees? (especially if you sold your house lately)
Ours is 4%
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| Posted 4/7/12 12:58 PM |
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Suzie4
LIF Infant
Member since 1/12 168 total posts
Name:
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Re: Real Estate Agent's fees? (especially if you sold your house lately)
websites like own e r s.com allow you to pay a fee to put it up on mls and then you can decide what you want to offer agents to show your home.
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| Posted 4/7/12 1:31 PM |
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neenie
Member since 5/05 22351 total posts
Name:
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Re: Real Estate Agent's fees? (especially if you sold your house lately)
thank you for all of the info!
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| Posted 4/10/12 12:04 AM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Real Estate Agent's fees? (especially if you sold your house lately)
Posted by Suzie4
websites like own e r s.com allow you to pay a fee to put it up on mls and then you can decide what you want to offer agents to show your home.
As a Realtor I have never understand why a seller would agree to this
you have no representation in the transaction and you have a professional negotioning against you
if you are willing to pay a buyers agent- be smart enough to pay a sellers agent to represent your best interest and fight to get you the highest price possible
I wish these websites would go away they are doing such a disservice!
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| Posted 4/10/12 1:28 PM |
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cjb88
Little Brother
Member since 5/05 3540 total posts
Name:
C
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Re: Real Estate Agent's fees? (especially if you sold your house lately)
There is a big sign for real estate company in Mt Sinai that says 2% commission and if the house doesnt sell they will buy it... does anyone know what the small print is for a company like this???
When selecting a real estate agent is it customary to get a few in your home before you choose one company to go with???
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| Posted 4/10/12 4:46 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Real Estate Agent's fees? (especially if you sold your house lately)
Posted by Beth
Posted by Suzie4
websites like own e r s.com allow you to pay a fee to put it up on mls and then you can decide what you want to offer agents to show your home.
As a Realtor I have never understand why a seller would agree to this
you have no representation in the transaction and you have a professional negotioning against you
if you are willing to pay a buyers agent- be smart enough to pay a sellers agent to represent your best interest and fight to get you the highest price possible
I wish these websites would go away they are doing such a disservice!
I don't think it's that big of a deal. Having a "professional" negotiating against you really means jack. You have a set amount you want to get... you go for that.
It's not like any buyer's agent is going to play any negotiating games because they will have other buyer's agents competing for the same business.
Of course the one drawback is you have to be present for all showings and do your own marketing outside of having the house on MLS. There is a price to pay for all of this and some people may prefer to do the legwork themselves.
I can see how Realtors may think these are doing a disservice, but that is obviously because things like this are cutting into the Realtor's business.
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| Posted 4/10/12 6:48 PM |
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Re: Real Estate Agent's fees? (especially if you sold your house lately)
Posted by ave1024
I don't think it's that big of a deal. Having a "professional" negotiating against you really means jack. You have a set amount you want to get... you go for that.
It's not like any buyer's agent is going to play any negotiating games because they will have other buyer's agents competing for the same business.
Of course the one drawback is you have to be present for all showings and do your own marketing outside of having the house on MLS. There is a price to pay for all of this and some people may prefer to do the legwork themselves.
I can see how Realtors may think these are doing a disservice, but that is obviously because things like this are cutting into the Realtor's business.
I think you are underestimatling the negotiating power of an experienced realtor. I learned effective negotiating techniques and tactics at a top law school that I then put into effect for 11 years, first as an attorney, and then as a real estate agent. I have ongoing training on real estate negotiations, and I negotiate multiple real estate transactions a month. I work tirelessly for my clients. I know my market inside and out (the current inventory that's available, the recent houses that have sold), not just from looking online at info that may or may not be accurate, but often from having been in those homes.
Do you really think I (or Beth, or any other active realtor) am not going to have an advantage over a home seller who is negotiating for themselves, and may be selling a home for the first time (or maybe, if he or she is "experienced" has sold 1 or 2 others in their lifetime)? Some realtors in my office have been in the business for over 25 years and have negotiated every type of sale in every type of circumstance. I think having an experienced realtor on your side who knows how to negotiate is key to a seller, especially in this market (where there are more homes on the market than buyers...I saw a stat that if no new homes come on the market, it would take something like 9 months to sell off all of the existing inventory).
And truthfully, it's not really about those type of websites cutting into real estate agents' business. I personally have never lost a listing to this type of website. They are still the much less common route to go -- most people still list with an agent under a traditional, full service arrangement. So it's not like they really present competition.
But I think those sites really do a disservice to those sellers and distorting the role of a real estate agent, really taking away from the profession overall. I liken it to a situation where someone is accused of a crime and is deciding whether to hire a lawyer or represent himself in court. If he hired a lawyer who said "you can pay me a flat fee instead of my usual hourly rate, and I will give you an hour's worth of advice, but then you are on your own to prepare all of your court filings and represent yourself in court," I would think it is a travesty! Because that "client" would be really at a disadvantage, and in the end, it's his interests that would wind up being hurt.
I can see why those types of real estate websites could hold some appeal to a seller who is looking to cut fees, but to my mind, paying a fee to this type of real estate website is largely a waste of money. There's so much more involved with representing a seller and even marketing a home than just sticking it on MLS.
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| Posted 4/11/12 9:16 AM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Real Estate Agent's fees? (especially if you sold your house lately)
Posted by Century 21 Dallow - Christine Braun
Posted by ave1024
I don't think it's that big of a deal. Having a "professional" negotiating against you really means jack. You have a set amount you want to get... you go for that.
It's not like any buyer's agent is going to play any negotiating games because they will have other buyer's agents competing for the same business.
Of course the one drawback is you have to be present for all showings and do your own marketing outside of having the house on MLS. There is a price to pay for all of this and some people may prefer to do the legwork themselves.
I can see how Realtors may think these are doing a disservice, but that is obviously because things like this are cutting into the Realtor's business.
I think you are underestimatling the negotiating power of an experienced realtor. I learned effective negotiating techniques and tactics at a top law school that I then put into effect for 11 years, first as an attorney, and then as a real estate agent. I have ongoing training on real estate negotiations, and I negotiate multiple real estate transactions a month. I work tirelessly for my clients. I know my market inside and out (the current inventory that's available, the recent houses that have sold), not just from looking online at info that may or may not be accurate, but often from having been in those homes.
Do you really think I (or Beth, or any other active realtor) am not going to have an advantage over a home seller who is negotiating for themselves, and may be selling a home for the first time (or maybe, if he or she is "experienced" has sold 1 or 2 others in their lifetime)? Some realtors in my office have been in the business for over 25 years and have negotiated every type of sale in every type of circumstance. I think having an experienced realtor on your side who knows how to negotiate is key to a seller, especially in this market (where there are more homes on the market than buyers...I saw a stat that if no new homes come on the market, it would take something like 9 months to sell off all of the existing inventory).
And truthfully, it's not really about those type of websites cutting into real estate agents' business. I personally have never lost a listing to this type of website. They are still the much less common route to go -- most people still list with an agent under a traditional, full service arrangement. So it's not like they really present competition.
But I think those sites really do a disservice to those sellers and distorting the role of a real estate agent, really taking away from the profession overall. I liken it to a situation where someone is accused of a crime and is deciding whether to hire a lawyer or represent himself in court. If he hired a lawyer who said "you can pay me a flat fee instead of my usual hourly rate, and I will give you an hour's worth of advice, but then you are on your own to prepare all of your court filings and represent yourself in court," I would think it is a travesty! Because that "client" would be really at a disadvantage, and in the end, it's his interests that would wind up being hurt.
I can see why those types of real estate websites could hold some appeal to a seller who is looking to cut fees, but to my mind, paying a fee to this type of real estate website is largely a waste of money. There's so much more involved with representing a seller and even marketing a home than just sticking it on MLS.
I agree 100% on everything
I have never lost a listing to a FSBO site
(and by the way the owner of FSBO.com used a realtor to sell his home- love it)
I always say putting the home on MLS is the beginning- not the end- there is so much more involved then taking a few pics and putting it online
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| Posted 4/11/12 9:33 AM |
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CouponKT
Our family is complete
Member since 6/06 16494 total posts
Name:
K
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Re: Real Estate Agent's fees? (especially if you sold your house lately)
Posted by cjb88
There is a big sign for real estate company in Mt Sinai that says 2% commission and if the house doesnt sell they will buy it... does anyone know what the small print is for a company like this???
I have always wondered how that place worked!
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| Posted 4/11/12 4:19 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Real Estate Agent's fees? (especially if you sold your house lately)
Posted by Century 21 Dallow - Christine Braun
I think you are underestimatling the negotiating power of an experienced realtor. I learned effective negotiating techniques and tactics at a top law school that I then put into effect for 11 years, first as an attorney, and then as a real estate agent.
Do you really think I (or Beth, or any other active realtor) am not going to have an advantage over a home seller who is negotiating for themselves
Depends on who you are talking about. If you are talking about me... then frankly no you wouldn't have an advantage. Not saying I would have an advantage, just don't assume that you would either.
And I speak from experience as I have been there. I've sold properties FSBO. I've sold properties that were initially FSBO and eventually paid a 2% commission to an agent that brought a buyer. And I have sold when I didn't have time and paid a listing agent to handle.
I don't let emotion get in the way of making sound financial decisions. Is your 11 years of law school going to help when you have to tell your client that I told you and your lowball offer to go pound sand? 
I am not saying everyone should go FSBO. Just saying when a realtor comes on here and wants to say that FSBO sites do buyers a disservice, I basically take that with a grain of salt as I know Realtor's have to protect their interests.
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| Posted 4/13/12 10:54 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Real Estate Agent's fees? (especially if you sold your house lately)
Posted by CouponKT
Posted by cjb88
There is a big sign for real estate company in Mt Sinai that says 2% commission and if the house doesnt sell they will buy it... does anyone know what the small print is for a company like this???
I have always wondered how that place worked!
They would market with the thought of doing an exclusive listing (or not paying a buyer's agent).
And if that didn't work, probably buy your house at well under market making it not worth it.
I mean... how else would it work? I'd be curious to inquire but all I would expect is a ton of fine print.
And to answer the OP's question, I wouldn't pay a realtor more than 4%, and if they bring their own buyer i'd probably push for a 3% or 3.5% exclusive clause.
Message edited 4/13/2012 10:58:11 PM.
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| Posted 4/13/12 10:56 PM |
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MrsM-6-7-08
<3
Member since 8/06 4249 total posts
Name:
Nicole
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Re: Real Estate Agent's fees? (especially if you sold your house lately)
Would anyone happen to know what a Commercial Realtor commission percentage is?
I know everyone said residential is 4-6%
but I am wondering if commerical is more or less
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| Posted 4/14/12 1:01 PM |
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Re: Real Estate Agent's fees? (especially if you sold your house lately)
Commercial real estate fees are more like 10% in this area.
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| Posted 4/14/12 2:01 PM |
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neenie
Member since 5/05 22351 total posts
Name:
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Re: Real Estate Agent's fees? (especially if you sold your house lately)
Posted by cjb88
When selecting a real estate agent is it customary to get a few in your home before you choose one company to go with???
I'm curious about this as well.
Thank you for all of the info!
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| Posted 4/17/12 10:34 PM |
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Re: Real Estate Agent's fees? (especially if you sold your house lately)
Posted by neenie
Posted by cjb88
When selecting a real estate agent is it customary to get a few in your home before you choose one company to go with???
I'm curious about this as well.
Thank you for all of the info!
Absolutely! Many sellers will interview several agents from different companies (and have them come view the home) before making a decision. Agents know this, so don't feel like you are wasting someone's time. You are giving them an opportunity to earn your business! Talkiing to several real estate agents will give you the chance to see how different agents differ in communication style, marketing plan, etc.
I would just say, when you invite them in to meet with you, that you are thinking of listing your home and you are meeting with several realtors to determine who would be the best fit to represent you in the sale of your home. That way, they know the deal going in.
Whenever I go on a listing consultation to a potential seller's home, I basically treat it like a job interview (which is what it kind of is!).
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| Posted 4/17/12 10:53 PM |
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