How much commission should I give a realtor?

Question

My house has been on the market for 6 months with no offers. The prices are falling in our town and I've cut the asking price several times but the competition seem to be cutting their prices even faster. My realtor's listing expired and now I'm trying to decide whether to re-list with the same realtor or use someone else. When I hired this realtor I put the commission at 5 percent instead of the standard 6. She said she would accept this but since then she has repeatedly told me the house is not selling becuase the buyers' realtors are put off by the 5 percent (of which they get 2.5 percent). She supposedly put on a special bonus for seller's agents--I never saw proof that she did---but no results from that. Now she is saying if I re-list with her I should put the comission at 6 percent. I am thinking of canning her instead. It just seems she has a conflict of interest in giving this bit of advice and I don't trust her. What should I do??

Answer 1

Lets face some facts here. First, because prices are dropping she is probably right that Realtors are not going to show due to the 2.5. Not much of an incentive. When the market has dipped as much as it has and new home builders are offering thousands of dollars in incentives your Realtor is trying to DRAW people into our home. Personally, why can her? Just because the house hasn't,t sold? NOT HER FAULT> IT'S THE MARKET. Your Realtor has all ready invested money of her own to advertise (not cheap) knows your wants and needs. Hiring a new Realtor is not your answer- incentives is.

Answer 2

Commissions are negotiable. Here is what I would do. First find another agent, one who is hungry and is willing to go the extra step for you. Then I would do a 5% commission where the listing agent (your agent) gets 1% commission and the buyer's agent gets 4% commission. If they want to make 5%, then let them work for it! So if they bring the buyer, they get to keep 5%.

To sweeten the deal, offer to pay closing cost up to a certain amount (depending on the value of your house and within the legal amount allowed).

Look, in a downward market, you have to think outside the box. For example, I rather give the buyer 10k to help pay for closing cost than to drop the price by 10k. Also, with a 4% commission, every agent with a buyer will swing by your place to show it even if the price is not lower than your competition. Never underestimate the greed of an agent!

I've sold a home, which sat on the market for 6 months with another agent, in this manner. I even raised the price to cover the closing cost and had it in escrow it in 2 weeks.

Good luck and I wish you well.

Answer 3

Commisson is usually between 6-5 percent. The way it works is if your agent sells the property on their own, they get the full commission. However, if another agent looks through the MLS and gets together with your agent, they split the commission. Sounds like your agent is really lazy and not proactive in selling your home. Do not re-list your home with her. Instead, find another agent. When you do, look for an agent with a lot of experience. To be honest, when you have an agent that has been in the business a long time, you get a lot of contacts and connections, and they may be able to move your house much quicker. Also, you have to understand something as well. The market is in a downturn as of now. What you want and what you will get is two entirely different things. It is a buyers market. Think of it this way. When you get comps from surrounding homes, you get a price range of similar homes for which they sold. If you want to sell quickly, price your home under the house like yours that sold for the least. The higher above that price you go, the longer it will take to sell. In the end though, I suggest that you go with another agent. A good agent will be honest with what your house will sell for, not what you may want to hear. Good luck with your home.

Answer 4

I will have to agree with most here and state that 5% is ok to me. Your agent needs to hussle your property so she can get paid. I would try someone different. Open the interview and here are some tips:

Virtual Tours- Cheap and really good

REALTOR = Listing will be attached to Realtor.com which will give you nationwide exposure. So go with a REALTOR.
Make sure 6 pictures are included on your Listing. Yes 6 pictures. This will put on the top listed on Realtor.com and give people more exposure to the home.

Pictures need to be taken with a 5 + meg pix digital camera. NOT A CELL PHONE. These pictures discourge me because when they upload to computer they become distorted.

Remember picture of Front of the House/ Master Bedroom / Master Bath / Kitchen / Backyard / Highlights of the house.

Should help you decide on your next Listing Agent