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butch | Realtors: if i only offer 4% on my house, do both the selling and buying agents get 2%? |
Additional Details
The house is worth about 250-275k...I found it on the internet, and i had a buyers agent.....i thought it was insane to pay 6% to have her unlock the door, show me around, and fill in my name in a standard purchase agreement....the selling agent didnt do anything, but he got 3%...no way
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goz1111
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This is the situation, say you offer 2% to each side. The 2% that goes to buyer's side, That 2% goes to buyers broker then divided between buyers broker and agent per their agreement.
Hence on a sale 275K 2% goes to broker buyer = $5,500, which then could be split 50/50 or 60/40 or even 70/30 but say 50/50 = $2,750 dollars before tax
Now flip that to your seller broker/agent Why would they list your property for $5,500 before tax? The broker will have expenses for advertising etc, agent has expenses also all for the chance to make half of $5,500 not going to happen, or if the seller agent takes it , expect the service to = the commission
Now on a Mil 2%= 20K to seller broker/agent whole different story
The other option to list the place with a place where they charge a flat fee to list on mls, then offering 3% to buyers agent = %8,250 divided by half 4,125 a more cash
Hear is the inside scoop with listing with these agencies, while its illegal to do so, but many buyer agents will not even show the place to their clients, so unless a person drives by and sees the place with sign for sale will not get allot of bites, The agent while looking threw the mls for listing probably will not print that listing for client |
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spot
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Offering only 2% to the buyer's agent will not look good. They will more likely avoid selling your house if they could. You have to offer the buyer's agent 3% to make your house competitive. Negotiate with the listing agent. Or go with discount flat fee brokers. |
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dann_y2k
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Depending on the agreement, sometimes selling agents take 3%, most of the time is 2% each. |
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teran_realtor
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That needs to be outlined in your listing agreement. Could be 2/2, could be 3/1, could be 4/0, etc..... |
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Captain Jack
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Yes...of course you have to negotiate that 4% with your listing agent. Then he splits it with the buyers agent. |
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newmexicorealestateforms
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That really depends on the listing office. They are the ones that offer to split their commission with a buyers agent or an agent who brings them a buyer. You do not pay the agent with the buyer, the listing agent does from the commission they get from the seller.
Buena Suerte |
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Shannon M
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My broker doesn't list anything with less than 6% commission (and if she does it's as a favor or because she's going to take cash at closing that would be more than a 4-6% commission)...if she didn't sell the property and another associate from another office does then she would get 3%, as she would be splitting commission with the associate who represented the buyers. |
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ecuaje
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YES, you agree to pay your listing agent 4%, then your agent splits the commission with the other agent, usually 2%. However, if the house is not moving or market is slow, you have to lower the price of your home and perhaps offer the other agent 3% to attract buyers to your home.
remember, the total commission is based on the sale of the home.
I am in california. |
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MissV
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Depends on the price of the house. For a house priced over a million dollars, 2% is reasonable. If there are homes with similar features offering a higher commission, then a Buyer's Realtor, sometimes with the support of the Buyer, will look at those homes offering 2.5 and up in addition to yours.
Sometimes a house is not shown if there is less financial consideration for the person who actually brings the ready, willing and able Buyer with a purchase contract.
Some Selling Realtors may take only 1.5% so that the Buyer's Realtor gets 2.5%. Realize, however, that they may not market as heavily because they won't have as much money to work with. |
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