How much will a real estate company charge to sell my home?
Posted by admin on 19 Dec 2008 12:44 am. Filed under Renting & Real Estate.
Kelly H
I am selling my home and wondering how much a real estate company will charge me to sell my home. I heard that it’s typically 6-7%…isn’t that kind of high?
I am selling my home and wondering how much a real estate company will charge me to sell my home. I heard that it’s typically 6-7%…isn’t that kind of high?
On December 19th, 2008 at 7:23 am
that is the norm
On December 21st, 2008 at 1:24 pm
Typically, you’ll pay 6% in commission. 3% goes to your agent/broker, and you offer to pay the seller’s agent 3% in order to convince agents to show your house to their clients.
Some real estate companies will charge only 4%. What they do is they list the house for 1% commission, but they still offer the full 3% for the buyer’s agent.
You could offer reduced commission for the buyer’s agent, but usually that won’t pay off. When the buyer’s agent sees that they will get a lower commission from your house, they will move on to the next house to show to their client. In today’s market, it may even be wise to offer 3.5% or 4% commission to the buyer’s agent to attract more people to your house.
As a general rule of thumb, you should figure on about 10% of the sale price in real estate commissions and closing costs.
On December 23rd, 2008 at 6:12 pm
I am at 6% with my agent that I have my house for sale with. The best way is to contact several companies and ask what their charge is
On December 24th, 2008 at 7:03 am
It’s 6% in my area. You can try to negotiate a lower fee, but it’s a lot of work to sell a house in this market. Full fee means all the agents in you area will want to sell your house and get a good commission. Unless you have a buyer lined up, full fee may be worth the cost.
On December 26th, 2008 at 12:19 am
They normally try to get six percent. Tell them that you will split that with the buyer, so you only pay three percent. Don’t pay them over 4 percent anyway. Tell them that you won’t pay the closing costs either. Leave that as a bargaining tool.
On December 26th, 2008 at 1:49 am
It only sounds high until you realize how much knowledge, effort, and time it takes to sell a house. Under most circumstances, half of that commission will go to the listing agent and half to the buyer’s agent.
Consider that your agent will easily work 60 hours a week. Let’s say it takes 8 weeks to sell your house, and that it sells for $250,000. Your agent will get 3.5% because there was a buyer’s agent involved. Before deducting marketing expenses, your agent has earned $8,750 for a total of 480 hours of labor. That means they’ve earned about $18/hr before expenses and they will owe 100% of the payroll taxes on that money.
Doesn’t sound like much to me.
On December 27th, 2008 at 4:59 am
6 is the norm, but you can ask them to charge 5 and get away with it. Any lower and no agents will show the property.
On December 30th, 2008 at 10:23 am
Everyone is fighting about the commission to sell their house, but there are more sellers than buyers.
Did you repaint the house before showing it?
Will you have the carpets shampooed?
Will you and the kids vacate during the first week of showings?
Will the house be professionally cleaned before showings? cluttered?
Agents are paid based on performance. With No sale there is no money. With no offer on the table there are no details to negotiate.
IMHO
There are 4 people involved in the sale of a home, the owner, the buyers and the two agents. The personality with the most persuasive arguments and negotiating skill will win the deal for their side.
IF you are able to negotiate an agent out of their commission, that agent is not the one who should be the defender of your real estate values.