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chappy
06-23-2008, 04:37 PM
Considering buying and selling some real estate. When discussing commissions with an agent, I was asked what I thought the percentage should be. I said 6%, not wanting to offend. I was then told, "I don't know where and when it was decided that realtors in this area should be a bargain, the national average is between 7% and 8%." Since I was just doing research and not wanting to argue, I changed the topic back to homes I'd be interested in. Just curious, outside of Northeastern Pennsylvania, what are some typical real estate commissions?

gcarter
06-23-2008, 05:15 PM
As I understand it, around here at least, they'll work at 4% as long as no other realitor is involved.

justleft
06-23-2008, 05:33 PM
There are a ton realtors around here, tons of properties on the market,
but very few buyers.

When I sold my last house, the realtor staged the place with furniture/ art work, etc.
all out of her pocket. She threw a wine and cheese party for the neighbors and other
realtors.

She told me her commission was 8% but some went to another realtor and
some went to the realty company. So after it was all done she said she
made about 4%.

But then she did move the property !!!

Good luck.

BlownCrewCab
06-23-2008, 05:51 PM
My Wife is an Agent, Around here they average 6%. After I read her your post she said to get rid of that agent. She'd Gladly drop the commision % to make a deal. Making some dollars is better than making NO Dollars. If that agent is Hell Bent on High commision then They probably will Not settle for less and lose you a deal until they can make what THEY Want, Which Is BS. They should be Happy you Picked them at all. Find one that will work WITH You. If they sell it themselves they should only get 1/2.. Gotta go Eat Now....Later...

joseph m. hahnl
06-23-2008, 06:24 PM
Well technically it is illegal for Realtors to discuss such things. It i s called price fixing and most state's Realtor commissions forbid it.
So to answer your question legally it is negotiable.

boxy
06-23-2008, 06:40 PM
Well technically it is illegal for Realtors to discuss such things. It i s called price fixing and most state's Realtor commissions forbid it.
So to answer your question legally it is negotiable.
As a Realtor I can tell you my commission is 6%. That is not against the Competition Act. I am an Independant Contractor, and I set my own rates.
What a Real Estate Brokerage can not do is tell me what I have to charge, that would be price fixing.

chappy
06-24-2008, 08:11 AM
Great info. Thanks for the tips. The realtor in question was a little too, how can I say, "sure" of himself. Anyway, he was just a guy I was talking to about possible business, I'm not locked in to anyone at the moment. I'll keep looking............

Tim Morris
06-25-2008, 10:53 AM
Last few times out I made a deal with the realtor. Boxy has, no doubt, seen this before. It works particularly well when selling if you're not in a big rush.

After seeing what the market value is, and setting your lowest acceptable price, negotiate the commission down -say 1 or 2%- and cut a deal. Every dollar higher than the stated agreed price is split between the seller and the realtor.

A pro realtor can make a buck here, and it removes some of the urgency so prevalent when things are on the move.

I've used it to buy too, but the window is much narrower.

MoMo
06-26-2008, 03:10 PM
Hang tight...I'm about to rant!!

If you're looing to sell, 6% is way too high. I'm in NJ and would never pay that rate to an agent. With all the sites online today (and you are internet savvy if you're here!) you can act as your own listing agent. Look at Zillow.com, Homegain.com, realestateABC.com, for recent sales and you can figure out a price to set for your house. You can list on the MLS, and offer 3% commission to whoever brings buyers to your home. This ensures that realtors will show your place.

If buying, negotiate that your realtor gets their percentage from the seller (Typically about 3%) of the selling price of the home you purchase and that's it. Buyers agents work for the buyer, not the seller. Due to market conditions, many sellers are offering additional incentives to realtors for bringing buyers to purchase their homes. (Including buyers agents!!) This is a clear conflict of interest, but unfortunately leads some realtors to bring you to homes where they make additional money. (Go on your state's MLS system--northeastpamls.com is one -- and you may even see some of these incentives listed as "$5000 to buyers agent" right in the description!!) These incentives should be yours, not theirs, and can be used for things like....ummm...maybe a new Donzi?! Ok, ok, that's not responsible... So, What I meant was it's your's to save.

As Money Magazine discussed this month, with the freedom of information comes less dependence on those who controlled it. Much like stock brokers in the past, the reliance on mortgage brokers and realestate professionals will continue to decrease as we continually gain more access to the information they once controlled.

Just my $.02... You can pay me back with yur savings :eek!:

-Dave

boxy
06-26-2008, 04:51 PM
Dave, I have one question for you.
In your area do For Sale By Onwer Sellers have the same disclosure requirements that a Licenced Realtor has?
Does a FSBO seller have to disclose the income property he is trying to sell has been used as a grow house for the last 6 months?
Does a FSBO seller have to disclose that every spring the basement becomes a cement pond?

I agree, information is KING, and to fully service my clients I have to provide more than just information. If you look at my website every listing has the address, a map, the price, and at least 20 professional pictures. I don't ever post ads that make you phone me for the information that should be available to you.
I feel the same way about boat ads, if you won't tell me the price in the ad, I'm not calling to find out.

In a Seller's market any clown can sell a house, where it gets tricky is in a Stable or Buyer's market.

As far as the Buyer Agent getting paid from the Seller, don't fool yourself, the Seller may cut the cheque, but the Buyer is still paying. In Ontario it is against our regulationg board's charter to accept both a percentage and lump sum as payment. Any early closing bonus is always paid to the Buyer.

chappy
06-26-2008, 05:01 PM
Just my $.02... You can pay me back with yur savings :eek!:

-Dave

What if I take a loss? Will you re-imburse me with cash or check?:biggrin.:

Formula Jr
06-26-2008, 07:53 PM
Boxy, you are the rare exception as a guy Real Estate Agent.
In the US, I've very much given up on male Real Estate Agents.

I've developed a prejudice against them.

And I can't say exactly why most Male Agents in the US are so freaking stupid at what they do.

We've been looking for a house in Seattle for a bit, so these are my perceptions.

If the Agent is female, and you ask if there are any USTs, she will give you a definitive answer: Yes, or No. The Male Agents don't know anything.

I've found this to be more than weird since it is so consistent that sex would play a factor. I research the houses before I even look. So I usually know more than the Agent about the property. The female Agents know very close to what I know: The male Agents ---- its all new information to them. At least thats what they say.

This is the US side of this, And Canada Rocks, when it come to dealing with people who are honest.

My Wife and I just went to Canada this weekend, just to get out of the US for a bit, and be around nice people for a while. Its just so refreshing!

Cuda
06-26-2008, 11:20 PM
Sales commisions are just like buying any other comodity. You can bargain with them. I've known several people who paid on 3%. I have no idea what the agent got when I sold my house in Pinellas, because the buyer paid it. I didn't pay any commision when I bought the house I own now. It was a For Sale By Owner, and you don't need a real estate agent, just a title company. They will dot the i's and cross the t's. They wrote up the sales agreement. I can't remember if I paid it, or the seller, but it seems to me, the title company charged somewhere around $350.
No way I would have paid over 12 grand in commisions.

Mr X
06-27-2008, 05:35 AM
We buy and sell using 1 realtor, he is happy with 3% during these slow times right now.

Cuda
06-27-2008, 02:25 PM
We buy and sell using 1 realtor, he is happy with 3% during these slow times right now.
Exactly. The rate is set as everything SHOULD be in a free market, that's by supply and demand.