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jlk51496
Mom of 3 - YIKES! =)
Member since 10/09 6758 total posts
Name:
Katie
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What did your real Estate agent charge...
What was the percentage they charged you when you sold your house?
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Posted 4/21/11 11:13 AM  |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: What did your real Estate agent charge...
4%
I wouldn't pay more than that.
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| Posted 4/21/11 11:30 AM |
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JandJ1224
Member since 6/06 5911 total posts
Name:
Jannette
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Re: What did your real Estate agent charge...
Usually 2% to listing agent and 2% to selling agent
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| Posted 4/21/11 12:00 PM |
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Re: What did your real Estate agent charge...
In defense of paying more than 4% (because most agents in my area get 4% to 6% as a service fee):
The listing agent has to offer out 2% to any selling agent who brings a buyer. That is the standard on LI, and if a listing agent offers out less, he/she is doing a disservice to their seller, because you won't get as many agents to show a house to their buyer for 1% or 1.5% when they can get 2% for selling any other house.
So that leaves 2% for the selling agent and 2% for the listing agent. However, the listing agent and office incurs all of the marketing costs, which in my office includes -- print advertising (home finder magazine, brochures, etc.), online advertising (hundreds of websites, a single property website for your home), open houses, etc. Not to mention the cost associated with the agent's time; we guide our customers through the entire process from listing to closing and beyond (we are there for the home inspection, we research our own comps for the appraisal, etc.)
But my point is that all of the marketing costs have to come out of the listing side, not the selling side, so it makes sense that the listing agent should get more than the 2%. And remember, the listing agent is doing all of the work and paying for all of the marketing upfront, but he or she will only get paid if the property sells. Until then, he or she is basically working for free.
I think it depends on what kind of services and activities and marketing you expect your agent to provide, and often times, you get what you pay for. If you are not looking for a lot, then 4% may be fine. I'm not saying that is never adequate.
But don't get hung up on numbers alone. Make sure you know what your real estate agent is actually going to do to sell your home, especially in this market. Get it in writing. Many times, you get what you pay for! If someone offers to list the home for less than 4% service fee, I'd be very skeptical of what they are actually going to do for you and if they will offer out the standard 2% to cooperating agents on MLS.
You shouldn't pay more than what you are comfortable with - and most agents are negotiable about their fee (especially if the seller is reasonable and motivated)-- but make sure you know what you are getting for that fee.
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| Posted 4/21/11 12:15 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: What did your real Estate agent charge...
Posted by Century 21 Dallow - Christine Braun
In defense of paying more than 4% (because most agents in my area get 4% to 6% as a service fee):
The listing agent has to offer out 2% to any selling agent who brings a buyer. That is the standard on LI, and if a listing agent offers out less, he/she is doing a disservice to their seller, because you won't get as many agents to show a house to their buyer for 1% or 1.5% when they can get 2% for selling any other house.
So that leaves 2% for the selling agent and 2% for the listing agent. However, the listing agent and office incurs all of the marketing costs, which in my office includes -- print advertising (home finder magazine, brochures, etc.), online advertising (hundreds of websites, a single property website for your home), open houses, etc. Not to mention the cost associated with the agent's time; we guide our customers through the entire process from listing to closing and beyond (we are there for the home inspection, we research our own comps for the appraisal, etc.)
But my point is that all of the marketing costs have to come out of the listing side, not the selling side, so it makes sense that the listing agent should get more than the 2%. And remember, the listing agent is doing all of the work and paying for all of the marketing upfront, but he or she will only get paid if the property sells. Until then, he or she is basically working for free.
I think it depends on what kind of services and activities and marketing you expect your agent to provide, and often times, you get what you pay for. If you are not looking for a lot, then 4% may be fine. I'm not saying that is never adequate.
But don't get hung up on numbers alone. Make sure you know what your real estate agent is actually going to do to sell your home, especially in this market. Get it in writing. Many times, you get what you pay for! If someone offers to list the home for less than 4% service fee, I'd be very skeptical of what they are actually going to do for you and if they will offer out the standard 2% to cooperating agents on MLS.
You shouldn't pay more than what you are comfortable with - and most agents are negotiable about their fee (especially if the seller is reasonable and motivated)-- but make sure you know what you are getting for that fee.
All of the marketing comes from the listing side, but lets face it... it's the buyer's side that actually brings the buyer. No buyer... no sale!
There are plenty of agents that will work for 4% (2% each side), especially in this market.
If anyone needs a recommendation for an excellent Realtor that works in south Nassau (Levittown/Wantagh/Bellmore/Seaford)... FM me.
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| Posted 4/21/11 12:47 PM |
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pickles16
Real Estate Professional
Member since 11/07 17227 total posts
Name:
Jen
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Re: What did your real Estate agent charge...
We refuse to spend more than 4% and have interviewed many agents that are willing to go a bit down. They are very open with the fact that in this economy any sale and commission is a good one
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| Posted 4/21/11 12:49 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: What did your real Estate agent charge...
Posted by pickles16
We refuse to spend more than 4% and have interviewed many agents that are willing to go a bit down. They are very open with the fact that in this economy any sale and commission is a good one
Many agents will go below 4%... but thats when Christine brings a valid point about agents not wanting to show the house. The only way I would go with an agent less than 4% is if they were still giving at least 2% for the buyer's RE.
I think 4% is the magic number. 2% for each side... or no deal.
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| Posted 4/21/11 12:54 PM |
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pickles16
Real Estate Professional
Member since 11/07 17227 total posts
Name:
Jen
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Re: What did your real Estate agent charge...
Posted by ave1024
Posted by pickles16
We refuse to spend more than 4% and have interviewed many agents that are willing to go a bit down. They are very open with the fact that in this economy any sale and commission is a good one
Many agents will go below 4%... but thats when Christine brings a valid point about agents not wanting to show the house. The only way I would go with an agent less than 4% is if they were still giving at least 2% for the buyer's RE.
I think 4% is the magic number. 2% for each side... or no deal.
agreed...we had a few agents when we were interviewing them have ppl right off the bat so we basically said if you come and show it to them and they want it, since there is no other agent in the mix you lower your rate..so thats how that happened..but I do think 4% is the magic number
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| Posted 4/21/11 12:58 PM |
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FirstMate
My lil cowboy
Member since 10/10 7790 total posts
Name:
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Re: What did your real Estate agent charge...
I just had our agent tell us 5%: 2% for her, 2 % for whomever represented the buyer and 1% for marketing fees. Marketing fees included MLS, a text number that goes on the for sale sign outside the house so inquirers could have instant info, a catered broker's luncheon pre-open house and some other websites.
The reality is the only marketing tool really needed is MLS (listingbook) and the ad in the Sunday paper for the open houses. The rest of that is fluff IMO. Does it help? Maybe. I just don't think I should lose out on a whole extra percentage over potentially useless marketing, i.e. a catered luncheon. Really? What's wrong with a friggan cookie platter and calling it a day? Throw in a box of wine for good measure. 
My bottom line is 4.25%.
Message edited 4/21/2011 1:08:06 PM.
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| Posted 4/21/11 1:01 PM |
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FirstMate
My lil cowboy
Member since 10/10 7790 total posts
Name:
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Re: What did your real Estate agent charge...
Do most people use buyer's agents? I have never bought a house using a buyer's agent. I just utilize Listingbook and the paper and have found my houses myself. Sometimes I'll look in The Real Estate Book (I think that's what it is called...the freebie in the grocery store). So to me as a seller, if the agent told me that less would come because of a lesser percentage going to the buyer's agent, that would not even phase me. As a buyer, even if I was to use a buyer's agent in conjunction with listingbook or whatever and the agent wouldn't take me to see a house for any reason, I would just go around them and go myself. I don't know. Am I in the minority?
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| Posted 4/21/11 1:07 PM |
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Re: What did your real Estate agent charge...
The reality is the only marketing tool really needed is MLS and the ad in the Sunday paper for the open houses. The rest of that is fluff IMO. Does it help? Maybe. I just don't think I should lose out on a whole extra percentage over potentially useless marketing, i.e. a catered luncheon. Really? What's wrong with a friggan cookie platter and calling it a day? Throw in a box of wine for good measure.
That's my point - Everyone has different expectations of a real estate agent. Just know what you are getting and make sure you are getting what's important to you, so there's no miscommunication. If you think MLS alone will do it, and that's all you are expecting your agent to do - then that's fine, and everyone's on the same page. In your situation, where the agent is doing the minimum of marketing and work, then 4% makes sense. But in my opinion, there's a lot more to being a listing agent than sticking a listing on MLS.
I think some consumers aren't clear on how the 4% is allocated, and don't understand that 4% does not go into the pocket of the agent. They have to pay the selling agent, pay for marketing costs (which are deducted off of the top of their share), and then split what's leftover with their broker. If the listing agent takes a listing for 4%, they'll get less than 1%.
And to clarify - I have no problem working for 4%. I agree that it's definitely important to be competitive in this market.
But I do have an issue when agents offer to list a house for 3%, but don't explain the ramifications of that to their seller (that they offer out less to other agents and will basically do no work on the listing). I have had many sellers whose listing expired with another agent complain to me about how that agent did nothing to sell the house and never communicated with them and they were disappointed with the service. So think it's key for people to be informed consumers and know not only what they are PAYING, but what they are GETTING.
It may seem like a bizarre or over-the-top comparison, but if I were having a serious operation, I wouldn't go to the cheapest surgeon, I would go to the one who would do the best job, imo. But for many people, their house is their biggest financial asset, so why select a realtor based solely on whose fee is lowest without factoring in what type of work they will do for you? (And I'm not saying that people who have the highest rates are the best, but just saying that there should be a deeper look into an agent and their services and qualifications and commission should not be the sole driving factor in your decision.)
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| Posted 4/21/11 1:22 PM |
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Re: What did your real Estate agent charge...
Do most people use buyer's agents? I have never bought a house using a buyer's agent. I just utilize Listingbook and the paper and have found my houses myself. Sometimes I'll look in The Real Estate Book (I think that's what it is called...the freebie in the grocery store). So to me as a seller, if the agent told me that less would come because of a lesser percentage going to the buyer's agent, that would not even phase me. As a buyer, even if I was to use a buyer's agent in conjunction with listingbook or whatever and the agent wouldn't take me to see a house for any reason, I would just go around them and go myself. I don't know. Am I in the minority?
I think the national stat is that 85% of buyers use an agent to buy a house.
Not necessarily a buyer's agent (which means that the buyers signs a contract with the agent to have that agent represent their interests in the deal and negotiate the best deal for them), but most buyers have agents research houses for them, show them houses, present offers on their behalf, and just generally guide them through the process. It doesn't cost the buyer anything to use an agent, so why not use one? The agent can do all of the research for you, as access to more information about listings (and more updated info), and can share expertise to help you through the process.
I don't think any agent would refuse to show a house that a buyer specifically requested to see because the commission being offered was less than 2%. However, there is a lot of inventory on the market right now. If a buyer is looking for a certain style of home in a certain area, there may be 10 homes that fit that criteria. Most agents are going to try to get into the 9 homes that offer the standard commission of 2% before they show the one that offers 1%. And that is one more thing stacked against the seller of that one house in an already very competitive market.
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| Posted 4/21/11 1:33 PM |
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LSP2005
Bunny kisses are so cute!
Member since 5/05 19461 total posts
Name:
L
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Re: What did your real Estate agent charge...
3.99% split 2.5 to buyers agent, remainder to mine. He is a full service local broker. All the agents offered between 4-4.5%.
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| Posted 4/21/11 3:32 PM |
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Serendipity
Summer!
Member since 4/07 7631 total posts
Name:
PrayingWishingHopingALOT
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Re: What did your real Estate agent charge...
We aqre paying 4.5% however if he brings the buyer its 4%.
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| Posted 4/21/11 5:28 PM |
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Erica
LIF Adult
Member since 5/05 11767 total posts
Name:
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Re: What did your real Estate agent charge...
Posted by Century 21 Dallow - Christine Braun
So that leaves 2% for the selling agent and 2% for the listing agent. However, the listing agent and office incurs all of the marketing costs, which in my office includes -- print advertising (home finder magazine, brochures, etc.), online advertising (hundreds of websites, a single property website for your home), open houses, etc. Not to mention the cost associated with the agent's time; we guide our customers through the entire process from listing to closing and beyond (we are there for the home inspection, we research our own comps for the appraisal, etc.)
But my point is that all of the marketing costs have to come out of the listing side, not the selling side, so it makes sense that the listing agent should get more than the 2%. And remember, the listing agent is doing all of the work and paying for all of the marketing upfront, but he or she will only get paid if the property sells. Until then, he or she is basically working for free.
I would see your point if listing agents didn't also have clients that were looking for houses. Seems like it evens out.
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| Posted 4/21/11 5:56 PM |
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bikramaddict
mommy-to-be
Member since 8/06 4376 total posts
Name:
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Re: What did your real Estate agent charge...
when we first listed our house, our realtor told us his fee is 4-6% - we pick. He explained how he breaks it down (split in half), etc. After asking many questions about commissions, I learned that other agents can see what the commission is on a house before they choose to show it so we had decided to give 5% - we thought it would provide some extra motivation for agents to show our house over a competitor. That strategy didn't work...but then again, my agent was also TERRIBLE in so many different ways that I won't get into it. When we lowered the price of the house we lowered the commission to 4%. We ended up getting more buyers looking when we did that. 4% was about the norm on what everyone had been looking for - 3% was the lowest.
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| Posted 4/24/11 9:16 AM |
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