What is the fair going rate for sales commissions for Colorado home sale?

Question

Can anyone tell me what the fair market compensation is for sales commission for the broker of a home sale in Colorado is? What should I consider fair for the seller of my home and the buyers agent? Thanks very much! Going through a divorce, have to sell my home...think my soon to be ex and her friend are trying to screw me on the commission. maybe kicking back some to her on the side. Appreciate any opinions.

Answer 1

Hello. The usual commission for the sale of a home is 6%, split between the buyer's agent and the seller's agent, unless the same broker handles both parties.

Answer 2

first of all, the rate of commission is negotiable in each and every case. there is no standard rate of commission, and a realtor can only tell you what THEY would personally charge to do a certain type of transaction. they cannot tell you what the competition charges. that would be a violation of sherman anti-trust laws, which prohibit price fixing and market allocation.

with that being said, you need to do the numbers. what can you sell your home for? what is the payoff on your home? what would you net if you paid ___% commission?

as the seller, find a real estate agent, and discuss this with them. whatever percentage you agree upon is going to be split between the listing agent, and the selling/buyer's agent. a good agent will be able to provide you with the market value of your home by doing a market analysis.

what you need to ask your agent is this: "what do YOU charge for doing a sale of this type?". often times you may think the commission is high, but in reality, it's a small price to pay for a realtor's knowledge, experience, and skill...plus it would be much less than what it would cost should you be sued by a buyer later on if you sold it as for sale by owner.

i hope this helps!

Answer 3

7.5 %