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Message
re: Selling my house. Why do I have to pay the buyer's agent?
Posted on 10/15/17 at 7:55 am to EA6B
Posted on 10/15/17 at 7:55 am to EA6B
I understand your point, but they aren’t in collusion. Each agency is free to negotiate, and many do. Every agent I’ve ever seen post anything online, is always very careful to never mention or discuss commission. I think this also leads to some of the misunderstanding, since there’s little information about commission directly and 6% is still generally recognized as the default.
I’ve seen anywhere from 1% to 3%, individually negotiated for buyer/seller, flat fee listings, tiered commission (6% first 100k and 3% after, split between buyer/seller).
The only thing that can change the commission structure is the market. I think the popularity of FSBO, as well as popular sites like Zillow, has caused a shift. It’s definitely not a set 6% anymore, at least for residential. Large commercial real estate transactions, I have no idea where it falls. But I imagine the market can influence it all the same.
I also believe part of the issue is around qualification and certification to become a realtor. It seems every house wife who finds themselves bouncing around jobs or unhappy wants to get their real estate license.
I’ve seen anywhere from 1% to 3%, individually negotiated for buyer/seller, flat fee listings, tiered commission (6% first 100k and 3% after, split between buyer/seller).
The only thing that can change the commission structure is the market. I think the popularity of FSBO, as well as popular sites like Zillow, has caused a shift. It’s definitely not a set 6% anymore, at least for residential. Large commercial real estate transactions, I have no idea where it falls. But I imagine the market can influence it all the same.
I also believe part of the issue is around qualification and certification to become a realtor. It seems every house wife who finds themselves bouncing around jobs or unhappy wants to get their real estate license.
Posted on 10/15/17 at 12:12 pm to LSUtigerME
quote:
I understand your point, but they aren’t in collusion. Each agency is free to negotiate, and many do. Every agent I’ve ever seen post anything online, is always very careful to never mention or discuss commission. I think this also leads to some of the misunderstanding, since there’s little information about commission directly and 6% is still generally recognized as the default.
You will never find anything in writing about the default commission being 6% by design. 60 minutes did a segment on this years ago, they interviewed agents and those representing agencies all over the U.S., they were unable to get a single one to admit that the default commission was 6%. They could not have been more evasive on the subject, they knew if the majority of them admitted the standard commission was 6% that would be evidence of collusion.
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