Real Estate Agent's Commission

[ladonnarosso]

I've bought a house before, but never sold a house. We are in the process of doing that and I just wanted to ask what a typical commission looks like. The agent that we are looking at quoted us 5.75% (3.25% for seller's agent and 2.5% for buyer's agent). Does that sound right to you guys? I've never done this before and I just wanted to run it by some more experienced financial minds.

[AnotherReader]

Real estate commissions are negotiable. In a state where the commission is typically 5.5 to 6 percent, 3 percent is usually offered to the buyer's agent. In some markets, especially markets with a lot of inventory, houses that offer less than the going rate for the buyer's agent don't get shown as often. At a 5.75 percent commission, the buyer's agent would typically get 3 percent and the seller's agent would get 2.75 percent.

It's always a good idea to interview at least three of the top producing agents in your area. These agents should come from different companies if possible. Get a full comparable market analysis to make sure you price the property correctly and commission bids to make sure you are paying the lowest commission that allows a fair split to the buyer's agent. Negotiate the commission with the understanding that the buyer's agent gets the expected percentage. You can also negotiate a reduction in the commission if the listing agent sells the property, so they are less likely to "double end" the deal without exposing the property to the open market.

[NJDebbie]

We paid 5% this past November. $18,000.00 Yikes!!!!

[97guns]

i found a guy on craigslist to sell my dads house when he passed, he was only 3% but got us into a lot of trouble. he accepted 2 offers at the same time and we were bound to both and i was served papers. we had to pay off 8K to one of the buyers to exit the contract. we threatened the realtor with a lawsuit of our own and he ended up selling for a 1% commission

moral of my story is to not always go with the cheapest no matter that i do it every time

[Bob B.]

My brother-in-law (now retired) made a good living as a Realtor. He worked his butt off, and earned his commission.

All of the advertising placements in magazines, on-line, the photographer that takes that nice 360 degree picture of the interior that ends up on your on-line listing, all come out of their pocket, until they are paid their commission upon sale.

A lot of the time, they show your house when the lookers are not working - evenings, weekends, etc.

A good Realtor earns every penny of their commission. The trick is finding a good Realtor.

[creditcardfree]

In the midwest we have paid 7%! So I definitely like your rate quoted.

[cooliemae]

My MIL closes on her house in Chicago this weekend and she's paying 5%, the average for Chicago was closer to 6% so we were happy.

[ladonnarosso]

Okay, thanks everyone! It sounds like a fair price because I believe that our Realtor is a really good one. They have aggresively marketed my home and are taking pictures on Thursday.

[creditcardfree]

Good luck with your sale! It is a stressful and exciting time. The realtor we talked to indicated once we list with her she would start talking about our home even though it won't be on the market for more than a month. I think we will be listing with her pretty soon.

[LuckyRobin]

We paid 6% on the house we just sold.

[TBH]

6% is standard. You can get a discount agent who will take like 3% just to list it in the MLS for you, but I wouldn't recommend it. My agent gives me 5% because I've bought and sold a lot of houses with him and because I refer people to him, but his normal rate is also 6%.