I live in Pleasanton CA, and have recently been informed by a friend that my agent is robbing us, by charging 5%. Is this true? What is a good percentage? And does anyone have any tips on negociating a beter rate with this Realtor, or should I seek another one?
Thanks!!
2007-06-25 08:29:57 · 10 answers · asked by Katie T 2 in Business & Finance ➔ Renting & Real Estate
Sounds low to me also, based on Illinois rates.
2007-06-25 08:42:32 · answer #1 · answered by pob14 4 · 0⤊ 0⤋
You need smarter friends. 5 percent is TOO LOW a commission to get your home sold. Most commissions are 6 percent.
If you were a real estate agent and a buyer asked for a list of 3 bedroom 2 bath homes in Pleasanton and out came 21 homes from the MLS computer and 20 paid a 6 percent commission and1 (yours) paid a 5 percent commission, which homes will the agent show to their buyers. You guessed it. Everyone EXCEPT yours.
2007-06-25 15:41:12 · answer #2 · answered by Anonymous · 0⤊ 0⤋
5% seems to be the standard fee for real state agents. Remember, your agent also needs to pay buyer's agent a commission and this commission is usually around 3%. So, your agent can only keep 2% (minus all the expenses). 5% is not a lot, unless he is keep 5% for himself, and charge you 7%-8%. Then, that's too much! Some agents claim that they only charge 1% which means he will charge you 4%: 3% for the buyer's agent and 1% for himself.
You want to sell your house as quickly as possible. So, go for the best, not the cheapest. You will save more money this way.
2007-06-25 15:37:47 · answer #3 · answered by coldrain 5 · 0⤊ 0⤋
If the total commission is 5%, (after compensation to an applicable buyer's agent), then it sounds fine. If your agent is still offering great advertisement exposure (i.e. good web presence, flyers, virtual tours, and print ads, then you're getting a good deal). I don't know how an informed person said you were being robbed, because the agent will likely "clear" only about 1.5% after paying a buyer's agency, advertising fees, and his/her own brokerage.
....Plus your agent will be "out" all those expenses of time & money should you fire him/her or the home does not sell during the listing period. In this market, real estate sales is a risky business.....Your average agent works with no benefit package and makes enough money to pay the bills after the HUGE overhead we incur. They're not all driving Bentleys and owning Yachts contrary to popular belief.
You'll always find an agent who will represent you for less, but be careful, it's hard to get top notch service at bargain-basement prices.
2007-06-25 15:45:39 · answer #4 · answered by R.E. Advice 3 · 0⤊ 1⤋
The other answerers are pretty much on the money. Right now the real estate industry is also studying the commission model and many brokers are going to flat per hour rates which although might be less than a standard percentage overall will allow the brokers to recover for time that they spend on projects and never get compensated for.
2007-06-25 16:10:18 · answer #5 · answered by newmexicorealestateforms 6 · 0⤊ 0⤋
The average is 6%, you're doing fine. Out of that commission the Realtor pays for all of the advertising, and other promotional items to sell your home. Then they have to pay a percentage to their broker and, if another agent brings the buyer, a percentage to them as well.
A good Realtor is worth their weight in gold.
Your friend is misinformed.
2007-06-25 15:34:44 · answer #6 · answered by mazziatplay 5 · 1⤊ 0⤋
A good percentage is 6%, so you are doing just fine.
As the other posters said, you could find an agent cheaper, but the less you are willing to pay, the fewer services you can expect.
2007-06-25 17:31:44 · answer #7 · answered by godged 7 · 0⤊ 0⤋
Your friend has a few screws loose. Apparently he/she has no idea of the costs and work involved in successfully obtaining a buyer for a property. Five percent is considered minimal in my state (Wisconsin), with the more difficult properties taking 6% and 7%.
If you successfully negotiate a lower rate, expect the services you receive for that lower rate to become less. There's no free cup of coffee in this business.
2007-06-25 16:05:55 · answer #8 · answered by acermill 7 · 0⤊ 1⤋
First, I'll assume that you are selling a house. 5 percent seems reasonable to me, since here in GA most agents ask for 6 or 7 percent.
Why don't you ask other people in your town who have recently sold or are currently selling property?
2007-06-25 15:40:15 · answer #9 · answered by hottotrot1_usa 7 · 0⤊ 0⤋
Ok. I am also a Realtor, but in Texas. All commisions are negotiable. But trust me, your friend might not know what all process is involved. If you provide a buyer and you are the seller, you could make a different kind of negotiation. What commpany is he or she in?
2007-06-25 15:39:42 · answer #10 · answered by Super Agent J 1 · 0⤊ 0⤋