Did you know this about selling your home?

Question

Don't know if every agent does this. But my agent does and told me that most agents do not disclose this to thier clients. If you sell your house on your own then your agent should only charge you 1 1/2 % commision because of course you will still have a contract with that agent and he still needs to get all the paperwork done for you. Just thought anybody with a house for sale would like to know this info in these hard times.

Answer 1

Many sellers sign a contract which covers how the property is listed, and how much the broker's commission is to be. It is called a listing contract. It is a form of employment contract between the seller and the broker. Since the agreement is binding, it must state in writing that the broker's commission is to be 1 1/2% if the seller finds the buyer. Otherwise, the commission paid to the broker will be whatever is written in the contract.

I think it's great that you have found such a broker. If you are marketing the property on your own, in addition to the services provided by your broker, then be very protective of your contacts. In order to pay only 1 1/2% commission, you must be able to show that the buyer decided to buy your house solely due to your efforts, and completely exclusive of your broker's marketing efforts. That may include such things as the flyers the broker sends out, advertising for which the broker has paid, inclusion in the local multiple listing system, or even his sign on your lawn.

Answer 2

This is not true in all states. All states operate under different Real Estate Laws and this may be true in yours but not in mine. In my state it would depend on the contract my clients signed with me. Personally myself I would not work for 1 1/2% commission and anyone that would work for that amount is going to 1. get hell from their co-workers (other Realtors) and 2. Is not really a good Realtor if he is willing to work for that low of a commission. That is just the way it works in the business.