What is the general commission for a mortgage broker?

Question

I think I am going to put my house on the market, but I don't want to pay high agent costs, and I don't want to sell by owner really!

Answer 1

You must mean a real estate broker, not a mortgage broker. They are two separate occupations.

That depends on the area of the country. Most real estate brokers start at 6 or 7% but all of that is negotiable. I personally don't negotiate my customary 6% commission unless I am getting something in return, like the opportunity to handle the sale of your new house for instance. The other problem with lowering commissions is that if you want your house listed on MLS which increases exposure then you have to have enough incentive for another agent to show your property. Reducing a commission is not much incentive.

If you have ever had a "problem" sale then you know a broker is invaluable and worth every penny. If it looked like an "easy" sale, then in all respects your broker did a great job to make it that way because there are generally no "easy" sales. Less complicated and maybe smooth, but never "easy!"

Answer 2

You want a real estate agent, not a mortgage broker. The commission varies, but typically 6%. 7% would be the high end. With the market slowing down, you would probably have longer listing period. I 'd suggest you engage one if you want to sell fast. There are some discount agencies who would provide minimum service with reduced commission. Check your yellow pages or local ads.

Answer 3

There are "discount brokers" out there who will offer to sell your house for 1%. Beware of these types of deals. For 1% your home will not be listed in the MLS, only on the agent's website.

I just sold my house, and it was 6% split between my agent and the buyer's agent. Just make sure to include this cost in your asking price.

They will nickle and dime you to death at closing with fees that you didn't know anything about. I think it ended up costing me close to $11,000 to sell my house, not counting all of the paint and minor repairs that I made just before it went on the market.

Answer 4

Generally, if there are 2 agents involved (yours and the buyers) you can expect to pay 6%. If you both use the same agent usually it's a bit lower.

In this market though, because it is so slow and they WANT your business, negotiate. If they find the buyer, have your contract read 4%. If YOU find the buyer only pay 2%, etc.

NEGOTIATE! Commission amounts are never set in stone :)

Good luck!

Answer 5

Sherman Anti Trust Laws prohibit price fixing and market allocation, so in other words 'THE RATE OF COMMISSION IS NEGOTIABLE IN EACH AND EVERY CASE".

Tell the agent a % you are willing to pay. If they don't want to work for that %, then try another realtor.

REMEMBER: You don't have to pay any more % than you want, and the agent doesn't have to work for you if they feel that's not enough.

Hope this helps!

Answer 6

I am a licensed Broker (by California DRE).

I only take as high as 1/4% of the loan amount, usually less.


Ben Berks
The Mortgage Factor
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661-554-7690 FAX
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