We are thinking of selling our home, my husband isn't home right now, and I am horrible at math. I was just looking over the contract and it says the company gets 7%. Is that pretty good? This is our first home so we are new at this.
2006-12-26 09:28:47 · 18 answers · asked by Barbara C 6 in Business & Finance ➔ Renting & Real Estate
6 - 7% Brokerage is typical but some limited service arrangement brokers will charge less. For 7% you should be getting the proven services of a top agent. The comission is commonly split between the selling and the listing offices. Many agents will price at 7% and offer 3 to the selling office and use 1% for marketing. If anyone wanting to sell pays 6% or higher they should demand several things for their money. 1 - A color photo in a prominent real estate magazine in the area, and 2 - A release of listing form so they can fire the agent if the agent doesnt provide top level service. Most sellers sign a 3 to 6 month listing agreement, some up to 1 year. They then think they have to wait out a poor agents listing period but are never told they can be released from the contract if they are not happy with the agents performance. By having such a release form you will be forcing your agent to do their job or become fired. As for agents that will discount their fees, I personally feel they are poor negotiators and know they will not work to get results. No agent can ever guarantee a fast sale at top price with no issues. You are hiring your agent to market, negotiate, and make your sale process as smooth as possible. Most discount agents are poor at best on all 3 items. All agents however will want the most they can get. If you wasnt aware of the actual brokerage fee and feel you have already been duped then get a new agent. Remember when an agent fails to inform you prior to even starting the process of selling, when a contractural item comes up later in the purchase and sales agreement, what will they miss then ? Its your money they are playing with.
2006-12-26 12:24:23 · answer #1 · answered by Kevin H 4 · 0⤊ 1⤋
Is "the company" the real estate brokers that you're using?
If so then they are getting 7points at closing.
This equals $10,500, that's alot!!!
You may want to get other comparisons from brokers before you make a decision. Don't sign the contract until you have compared.
Also to lower this, try to arrange financing on the home yourself. Or consider owner financing with a substantial down payment. Either of these will eliminate you having to pay for the broker to arrange financing.
2006-12-26 09:56:29 · answer #2 · answered by Goyo 6 · 1⤊ 0⤋
if you've never sold a home before, do not do it yourself. Do hire a good agent.
It is expected for you to meet with several realtors, all of whom will compete for your business. Some will compete by claiming they'll get you a higher price (unlikely), some will compete with lower commission rates. Ultimately, you need to find the right balance between commissions and your trust in their experience to sell it for the best price, and the least hassle for you. Smooth transactions are so important.
After meeting a few (which you should do together with your husband), you'll get a better idea of what other agents think your home should sell for, and what you should have to pay for their services.
2006-12-26 09:41:49 · answer #3 · answered by Anonymous · 1⤊ 0⤋
You'll see that the selling agent gets 3.5 and the buyer's agent get's 3.5. Be aware though, this is negotiable. It's usual for 7% of the first 100,000 to be asked for but it's ALSO usual for that percentage to be reduced to 3.5% of everything over that. You can also expect an ez acceptance to a request for a flat 6%. I've sold a lot of homes
2006-12-26 09:38:21 · answer #4 · answered by westgaliberty 6 · 1⤊ 0⤋
The Realtor company gets 7%? That is high.
.07 x 150,000= $10,500 out of your pocket.
Everything is negotiable... tell them you'll list with them at 5%, or no deal.
2006-12-26 12:12:15 · answer #5 · answered by Anonymous · 0⤊ 0⤋
That is a pretty high price! Find a better deal. tha awnser to the problem is 10,500. Good Luck. Summer Months are best to sell!
2006-12-26 09:39:17 · answer #6 · answered by chelsea 3 · 1⤊ 0⤋
Eaiest way is to divide by 100 to get 1% by dropping 2 zero's (1500) then multiply by 7 = $10500
2006-12-26 09:33:34 · answer #7 · answered by Wyleeguy 3 · 0⤊ 1⤋
7% is the TOP cost for an agent. I'd negotiate and get it to 6%-- half that goes to your agent and half to the buyers agent.
7%= 10500
6%= 9000
A $1500 difference. Most all agents will list for 6% in my area-- they WANT your listing. NEGOTIATE NOW BEFORE YOU SIGN!!
(just take your listing price and multiply by the decimal / .07 or .06 )
2006-12-26 09:32:39 · answer #8 · answered by Anonymous · 1⤊ 0⤋
the normal rate is 6%. but anywas 7% of 150,000 is 10,500.
2006-12-26 09:32:19 · answer #9 · answered by ladierockett 2 · 0⤊ 0⤋
divide 150,000 by 100 then multiply by 7 and you get 10,500
2006-12-26 09:36:53 · answer #10 · answered by master_furches 2 · 0⤊ 1⤋