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Negotiating real estate agent commission
Posted on 10/9/20 at 10:21 pm
Posted on 10/9/20 at 10:21 pm
So I’m possibly going to put my house on the market in a very hot area of real estate right now. The last couple of houses in our neighborhood have had full price offers within a day or two. I am using this agent to buy a potential house and I kind of feel slightly obligated to let him list our house. Is it reasonable to ask him to reduce the commission to 4% due to the market and him probably only having to show it a couple of times before we get an offer? I’m assuming if he agrees, the commission is split 2% for him and then the buyers agent.
9
Posted on 10/9/20 at 10:45 pm to Civildawg
You can split the commission however you wish.
Posted on 10/9/20 at 10:46 pm to C
I've negotiated commission with multiple agents. They want a sale and will come off if it makes it happen
Posted on 10/9/20 at 10:48 pm to Civildawg
I don't think it's unreasonable. If he doesn't like it he can say no. Especially if you just used him as your buyers agent he's getting plenty of business out of you.
Agents are grossly overpaid anyway. 6% regardless of sales price is a ridiculous model that I can't believe people are still willingly paying. You'll pay $25k on a $400k house for somebody to type up a glorified Craigslist ad and host a few open houses to eat hors d'oeuvres on your dime.
Generally, yes
Agents are grossly overpaid anyway. 6% regardless of sales price is a ridiculous model that I can't believe people are still willingly paying. You'll pay $25k on a $400k house for somebody to type up a glorified Craigslist ad and host a few open houses to eat hors d'oeuvres on your dime.
quote:
I’m assuming if he agrees, the commission is split 2% for him and then the buyers agent.
Generally, yes
Posted on 10/9/20 at 10:52 pm to Civildawg
Everything is negotiable
Posted on 10/9/20 at 11:26 pm to Civildawg
Where are you located? There’s plenty of flat fee brokerages now that save you thousands. And they provide better service....
Posted on 10/10/20 at 1:22 am to LSUTigers00884
quote:
There’s plenty of flat fee brokerages now that save you thousands. And they provide better service....
Definitely check this out. I am in the Kansas City market and our agent does more than 95% of other agents. Most agents are not worth a damn. Our agent has a minimum fee of 1,500 for the sale side and 3% on the buyers side. Most of our sales are 1% on the sell side. The reason for the 3% is to entice the buyers agents to look at your property. Unfortunately if you do less, most agents will steer their clients elsewhere first. Its saved us a lot in the long run. We had 22 sales last year. This year we are down a little bit. 13 sales to date but have 3 under contract right now. Very hard to buy anything with inventory so low.
Posted on 10/10/20 at 7:21 am to TigerDoug
We got downvoted by a traditional Realtor. Lol.
I pay $2500 to list my properties & 2.5% to buyer’s agent. Very similar to what you just said.
I pay $2500 to list my properties & 2.5% to buyer’s agent. Very similar to what you just said.
Posted on 10/10/20 at 8:22 am to LSUTigers00884
I put my house on the market last week, and received two offers the next day in Jefferson parish, one offer came in at at full listing price. The agent suggested to list it at 205k, I told him to list it at 213k, in case the buyer want me to pay for his/her closing cost.
FYI: I negotiated the commission down to 4.5% and he's glad to list it.
FYI: I negotiated the commission down to 4.5% and he's glad to list it.
Posted on 10/10/20 at 11:47 am to Civildawg
It's always negotiable....but honestly that total % hanging out there does help exposure. Buyers agents more apt to bring their clients
Posted on 10/10/20 at 11:57 am to Civildawg
This topic has been run into the ground but I'll add that a GOOD agent is worth it and makes a difference
But like lawyers...there's lots of em and some of them suck yet charge same fees
But like lawyers...there's lots of em and some of them suck yet charge same fees
Posted on 10/10/20 at 1:55 pm to Civildawg
In this market, 5% split is pretty standard.
If it’s a dual agent situation (your selling agent brings you the buyer) most will agree to 4%.
Anything below that is just getting bit picky and will probably cut your interest by both parties. If you can’t stomach it and think they don’t bring any value do a direct listing with a brokerage. I’ll say though, a good agent is worth it. Not just on price, but dealing with dumbass people.
If it’s a dual agent situation (your selling agent brings you the buyer) most will agree to 4%.
Anything below that is just getting bit picky and will probably cut your interest by both parties. If you can’t stomach it and think they don’t bring any value do a direct listing with a brokerage. I’ll say though, a good agent is worth it. Not just on price, but dealing with dumbass people.
Posted on 10/10/20 at 1:58 pm to TigerDeBaiter
RE agents are grossly overpaid. Go with a flat fee. Agency problems are real.
Posted on 10/10/20 at 3:29 pm to Civildawg
I would ask him what he thinks you should list it at. Then call another realtor and get their opinion. Then put up FSBO sign asking a few thousand more than highest price. Give it a week. If you get an offer tell original realtor you will pay them $2500 flat fee to handle paperwork and you will use them for next house purchase. If market is hot why pay more?
Posted on 10/11/20 at 12:32 am to LSUTigers00884
quote:
There’s plenty of flat fee brokerages now that save you thousands. And they provide better service....
Except when they don’t, I had a client buy one of those listings and the agent ended up screwing up and costing their client $4k+ on a $200k property.
In some markets fsbo’s work, but you’ll generally sell properties for more and quicker using an agent.
Posted on 10/11/20 at 12:40 am to Hankg
quote:
Then put up FSBO sign asking a few thousand more than highest price. Give it a week.
K, so by doing this, you’re eliminating the available pool of interest by 90%. If you’re selling any property that’s over $250k, BOL just listing on fb and the like. The neighborhood I live in I’d consider fairly hot, realtor listed properties are lasting hours on the market, fsbo’s are available for months.
Posted on 10/11/20 at 4:39 am to LSUTigers00884
quote:
We got downvoted by a traditional Realtor. Lol
As investors we should have a feel for the market, especially for the areas you have sold multiple properties. Doesn't make any sense to be paying 6% commission at all.
Posted on 10/11/20 at 7:32 am to TJG210
“I had a client buy one of those listings and it cost him 4k”
This sentence doesn’t even make sense.
Go back to listening to what your broker tells you what to do, sheep.
This sentence doesn’t even make sense.
Go back to listening to what your broker tells you what to do, sheep.
This post was edited on 10/11/20 at 7:34 am
Posted on 10/11/20 at 8:07 am to TJG210
FSBOs depend on the owner. Some are more than capable of getting it sold quickly and saving themselves 10s of thousands in commission, while others have no idea what they're doing. Same as some Agents being very good and worth the money and others being a suburban house-wife who thinks anybody can just get their realtor license and be worth their commission.
In the internet age, if you can stage the house, hire a professional photographer, and post the listing on realtor, zillow, trulia, etc. it's just as good as having a realtor. Potential buyers are more than capable of using those websites if the pictures catch their eye.
As with all listings, its going to get more traffic if it's in a good location, priced well, it's updated, has a newish roof, hvac, and other big ticket items. All of that depends on the seller, whether there's a realtor or not. A seller that works in the industry or has enough experience selling houses should easily be able to get by without an agent if they're willing to put in a little extra time
In the internet age, if you can stage the house, hire a professional photographer, and post the listing on realtor, zillow, trulia, etc. it's just as good as having a realtor. Potential buyers are more than capable of using those websites if the pictures catch their eye.
As with all listings, its going to get more traffic if it's in a good location, priced well, it's updated, has a newish roof, hvac, and other big ticket items. All of that depends on the seller, whether there's a realtor or not. A seller that works in the industry or has enough experience selling houses should easily be able to get by without an agent if they're willing to put in a little extra time
Posted on 10/11/20 at 10:53 am to Civildawg
How about just go with a discount service such as redfin who will set you up with an agent who is already willing to take a discount on commission? Ive bought and sold my primary residence like that even back before stuff like that was popular without issues.
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