kiwi asked:
My last realtor took 5%. I’m listing my home this am with a new realtor and she wants 7.5%. Is this normal?
I live in Florida where the market has totally dropped in home value.
on page seo
My last realtor took 5%. I’m listing my home this am with a new realtor and she wants 7.5%. Is this normal?
I live in Florida where the market has totally dropped in home value.
on page seo
3-6%—-it can be negotiated.
In Manhattan, realtors get 6%, so I’d say, yes, 7.5% is hefty, however, the tactic might be to draw buyer brokers, so the split will be higher.
In NYC, 4% goes to seller, 2% goes to buyers broker, who then has to split that with the company they work for.
So, to attract buyer brokers to bring buyers, your broker might be using this increase to increase the split that is paid to other-side – but of course it drives your cost up.
Call around other seller agents from different companies and ask what they would charge for the same service.
If you need financing for your new home I work with mortgage brokers and can get the best rates out there as we know all the banks.
I hope that was helpful.
Regards,
Daniel
You can get some that will list for 2%, however if you are a realtor and trying to sell a house to someone, would you try your hardest to sell the one paying 2 – 5% or the one paying 6 -7%?
Depends on the region but I’d say 5-6% percent is average. Remember the 5-6% is actually split between 2 agents (2.5-3% will go to the agent listing your property and 2.5-3% will go to the agent that brings in the buyer.
7.5% is unacceptable. 7% is absolute max. 6% is more normal and some desperate realtors will do 5%.
Tell this person to take a hike.
Put ad on craig list for any realtors willing to do a 5% listing commission and I bet you will receive a handful of responses.
I am a licensed Realtor 7.5% is very high. I would call around before you settle with this Realtor. Typically the Listing Realtor would get 3% and the buyers Realtor is 3%. Total of 6%. You can also Tell the Realtor you only want to pay 2.5% To her/him, and 2.5% to the buyers Realtor. Total 5%. If they do not accept this, then call around. There are numerous Realtors willing to do this with the real estate market situation. YOU are the homeowner and it is YOUR choice. Do NOT let any ONE Realtor charge you an over priced commission…Good Luck!
What is she doing with the 7.5%?
A Realtor does not keep most of the commission themselves. I would like to know what are the plans with the money. Marketing expense? Payment to Broker? Payment to other Realtor and their broker? Maybe she is proposing a program where a bonus is paid to the buyer’s agency to encourage more agents to show your property and perhaps sell it quicker and for more money.
A commission is normally split four or more ways. The two realtors and the two companies. The companies and agents each have expenses they pay out of that commission and of course taxes and then they keep the rest. Out of a $6,000 commission your listing agent may get to bring home about $1,000 and that is only if they are successful at selling your house- if they are not successful they still have expenses to pay but no commission to pay them out of. The reason it is set up this way is to use a carrot and stick to encourage the agent to work hard and sell the house.
Ask the agent what are they going to do for their money and how is the commission going to be split up.