Real Estate Agent's Commissions

Discussion in 'Archived Threads 2001-2004' started by Joel Mack, Mar 14, 2002.

  1. Joel Mack

    Joel Mack Cinematographer

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    I realize it's different everywhere, but I was wondering if anyone had an idea of what a general average might be?

    My agent is charging 7%, and was wondering if that's about right, or if it's high...

    Any ideas?
     
  2. Tom Johnson

    Tom Johnson Stunt Coordinator

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    That sounds high. I believe the norm is 6% and many are as low as 2%. This is something that is negotiable.
     
  3. Robert McDonald

    Robert McDonald Stunt Coordinator

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    Residential property is usually 6% with commercial usually 10% here, but it is negotiable when you sigh your listing agreement
     
  4. brian a

    brian a Second Unit

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    A lot of builders I've been to lately have deals where if you build one of their houses and use one of their agents to sell your exising house, they will charge a lower commission on both. It looked like a pretty good deal.
     
  5. Dennis Reno

    Dennis Reno Supporting Actor

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    I just purchased a home and am in the middle of selling mine. My agent charges 6% on the first 100k and 3% after that. I thought it was very reasonable and did not bother trying to haggle.
     
  6. Kirk Gunn

    Kirk Gunn Screenwriter

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    6% on the first 100k and 3% above that is sweet !
    Most charge 6% in our area, but with the market so insanely hot, the number of "Sale by Owners" has sky-rocketed !
    You can also get your agent to reduce their commission to make the sale if you stand firm in the negotiations. They knocked a percent off when the seller and ourselves were ~ 2k off and neither would budge.
    My personal opinion of realtors I'll leave out of this civil discussion.
    [​IMG]
     
  7. Todd Hochard

    Todd Hochard Cinematographer

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    There is a group of realtors in my neighborhood turning out homes at 3-3.5%.

    When I sell my home, that's all I'm paying.
     
  8. Brian Perry

    Brian Perry Cinematographer

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    Before listing "For Sale By Owner" you need to understand that most of the time, half of the 6% you pay to the selling agent goes to the buyer's agent. If you sell the house yourself, you may be severely limiting the number of buyers' agents willing to show your house to their clients.

    That said, I think 6% is a ridiculous amount to pay. My agent made over $15,000 for literally a few days of work. I can see when a house sits for months, but there should be a fairer compensation plan for times when a house sells in a day or two.
     
  9. Trey Fletcher

    Trey Fletcher Second Unit

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  10. MickeS

    MickeS Producer

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  11. Brian Perry

    Brian Perry Cinematographer

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    Trey,

    Mike is right -- I should have said "my agent and her firm."
     
  12. Tom Johnson

    Tom Johnson Stunt Coordinator

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  13. Henry Carmona

    Henry Carmona Screenwriter

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    Hell id be happy with 7%
    The best i could get on my undeveloped property was 10% [​IMG]
     
  14. Brian Perry

    Brian Perry Cinematographer

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  15. Tom Johnson

    Tom Johnson Stunt Coordinator

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    Agreed.
     
  16. Ashley Seymour

    Ashley Seymour Supporting Actor

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  17. Philip Hamm

    Philip Hamm Lead Actor

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    As I understand it the general rule is 6% with 3% going to the selling agent and 3% going to the listing agent. Hell of an incentive to sell the houses you list isn't it. I bought my house privately with no agents at all, myself and the seller came up with a fair price based on market comps, split the difference, and laughed all the way to the bank.
     
  18. Kirk Gunn

    Kirk Gunn Screenwriter

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    Brian - that's not always true either. We were looking with an agent and were shown a "For sale by Owner". She cleared it with the owner (before showing) that he would cut her 2 %. (perhaps he was desparate ?)

    Any situation can be had for the the right price.
     
  19. Neil N

    Neil N Stunt Coordinator

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    Several points:

    6% is probably the most common commision for residential real estate, with 3% going to the listing agent and 3% to the buyer's agent. If your agent wants, say 7%, make sure they are offering at least 3.5% to 4% to the buyer's agent. The more they offer to the buyer's agent the more likely your house will get shown. Also, if you're getting a "cut-rate" deal of 5% or less, you want to make sure at least 3% is going to the buyer's agent. You can be sure your house will be the last to be shown if you're offering only 2% to the buyer's agent, while there are 20 other similar homes offering 3%.

    When negotiating with a listing agent, you should be able to get a discount if you agree to buy your new house through them. Say a reduction from 6% to 4.5% (with 3% going to the buyer's agent) as long as you use your listing agent for your new home.

     
  20. Neil N

    Neil N Stunt Coordinator

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    Where's that "Thread Killer" thread when you need it? [​IMG]
     

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