Selling your house for 2% commision, can some explain this to me?

Question

I've heard theres more to it than that, can someone explain this process to me? thanks

No I meant those companies that advertise "Forgot 6% commision, we will sell your house for 2%"

Answer 1

Need more info. Has someone told you they will list your house for 2%?

Answer 2

Okay, here's the thing: is this TOTAL COMMISION or the commission of the listing agent? A buyer's agent will ALWAYS expect to make 3% if they bring you a buyer. If its listed at less than 3% for the SOC (selling office commision--- selling offic e is the one that brings the buyer) they might not even show your home.

So, even if they are giving the full 2% to the buyer's agent, this isn't enough. But let's be real: they aren't going to list you for free. So who gets that 2%? LIkely, its the sellers' agent. They're saying that if a buyer comes to them directly, the total commision stays the 2% (most likely thats why they say JUST 2%) but the likelyhood of that happening is like, 5-10%. So they'll need to add the 3% for the buyer's agent--- making it a FIVE PERCENT (5%) listing, not a 2% listing.


call and ask for details, but i'm betting this is what it really is.

Answer 3

Depends: Do you want to list your house, or do you want to sell your house? I'm a buyer's specialist and I won't take buyers to any listing that won't pay at least minimum commission unless it's enough under the market to justify it - in court if need be. My client has agreed to pay the commission if you don't. So in order for me to safeguard their interests, I've got to be able to show where this transaction left them better off than any other transaction. Buyer's agents don't work for free, and we're the ones with buyers. Most buyer's agents want three percent. So it's your choice: underprice the property or pay a buyer's agent or hope for a sucker.

Typically, the difference between a discount listing agent and a full service one is completely on the listing side. More often than not, the discounter is an up front charge of $X, regardless of whether the property sells. The full service one charges more, but only upon a successful sale, and quite frankly, most good buyer's agents will eat most discounters alive in negotiations. Expect to net a lot less when you sell through a discounter, and for it to take longer.

Answer 4

So how about this...."I can't compete with those who charge higher commissions but I am cheap". In the end, it will cost you tens and thousands. What they do is don't tell you the hidden costs such as reduced exposure, direct out of pocket expenses, very little or no assistance with industry knowledge. In addition, they will do the 3 P's for you which is " place an ad, place a sign and pray". In realty, ads and signs don't not sell real estate....people do. About 80% of the home sales are done by real estate agents but they will skipp your house because they do not make money. In a hot market, you can probably get away with it but with the marketing cooling off, you will need every bit of help you can get. In Florida, inventory is 400% higher than same period last year.

Answer 5

It's bread for the real estate agent. Some of it covers the agency's advertising. You will be tied to it for a few months. That means you cannot sell it yourself or use another agent. If you do this, you still have to pay them their commission.

So think carefully if the agent has your best interests at heart, or he is interested in listing your home and pocketing the commission. Some agents will inflat your property prices hoping to get your business. Once you sign the contract, then they tell you what your house is actually worth on the market. So don't be fooled into that.

Be realistic and know what similar houses in your area were sold for in recent times to gauge a down to earth price.

*****************

Answer 6

The 2% discount companies often compare their apple to the orange of a full service company.

Often times the effective price is actually 4-5% for a discounter and your home stays on market for a number of additional days due to limited exposure and negative working relationships with other agents in the market.

The University of Texas did a study. The discount brokerage sells homes for 1.7% less than market average, while controlling for all other factors. Homes stay on the market longer and the home seller is required to perform services that are typicall handled by the full service company.

Once, the difference in sale price and additional time on market is taken into account the savings are negligible if they are present at all.

Don't take my word for it.

http://www.recenter.tamu.edu/tgrande/vol13-1/1765.html

Answer 7

Please read the fine print. The catch is you also have to pay upfront fees for advertising, contracts, internet or MLS exposure all a la carte. Depending on the options you choose the actual amount will be more than the 2%. Also if a buyer's agent brings a buyer you may also be responsible for a portion of his fees if you want his services. That can be negotiated however.

Answer 8

Commission goes to a realtor but it's usually more like 6% of the sales price. I dont know if your referring to something different though.

Answer 9

i know there is a company here that does it called assist to sell or assist2sell.