Real Estate Commission

[River918]

What's the going commission percentage for an agent to handle the sale of your house?

[sigepmock]

I've always heard 3% for each agent.....if one person does both you can get down to 5% total...but with the market slowing down I bet there are some hungry agents out there......but I'm no expert so I may be completely wrong :)
Chris

[FREIND OF AA AND TA]

We are back to 6% and some of the higher end homes I will do for 5% Just depends. I usually hook up my past clients with 5% too. Just make sure the agent has one hell of a marketing plan for you.

[BshyBvrGirl]

My realtor has a commission of 6%. Could be better but it could be worse I guess.

[shueman]

It was 6% for houses back 30 years ago when I was an agent...:eek: I believe that land, commerical, etc. do run higher...:confused:

[al cole'holic]

All depends on the situation and how we want to handle it. We've negotiated commissions down to 4% in certain transactions, let's say you were gonna list and buy there's alot of room in there for some reductions in %. Some cases where the agent brings in their own buyer that leaves out the need to pay an outside agent the 2.5%-3% they'd be looking for so there's a good opportunity to save some money..On the other hand there are those sellers that say XYZ Company says 1% to sell your home, well there is another side to that coin...

[1 Baja Guy]

Well like they say... You get what you pay for. Right now in this market I would pay 6% plus to move my speck house in Lake Arrowhead. Any takers? :D

[al cole'holic]

Well like they say... You get what you pay for. Right now in this market I would pay 6% plus to move my speck house in Lake Arrowhead. Any takers? :D
I wouldn't pass that up :)

[RP2]

I interviewed a couple of prospective agents over the last couple of weeks and they both were willing to go 5% if they handled both ends and if the house sold for the asking 1.2 million, if not, they would negotiate depending on the sale price and situation.
Both did agree that times are changing and agents are willing to negotiate if need be.

[Baja Big Dog]

Well like they say... You get what you pay for. Right now in this market I would pay 6% plus to move my speck house in Lake Arrowhead. Any takers? :D
I heard it was a crack house!
Or are yoyu growin pot there like they do in Diamond Bar??:D

[Cole Trickle]

I paid 4.5% but my agent was involved in the sale and purchase of my new home.(It was a friend that did a great job)

[1 Baja Guy]

I heard it was a crack house!
Or are yoyu growin pot there like they do in Diamond Bar??:D
Hey ... The business isnt included in the sales price.... :D :D :D :D

[Baja Big Dog]

Hey ... The business isnt included in the sales price.... :D :D :D :D
heard your realtor was a nappy headed ho....that's why she wanted to sell it...
:o :o

[Steamin' Rice]

I would think that with the market changing, that good agents are earning their commissions more than ever. I sold my house in OC last summer, but if I was selling now I'd be looking to pay 6% for a good agent who will get the house sold.
I used cdog from the boards and was very happy.

[Ivan Dan]

I paid 4.5% but my agent was involved in the sale and purchase of my new home.(It was a friend that did a great job)
I heard that guy is pretty cool! :D

[Cole Trickle]

I heard that guy is pretty cool! :D
Someone has been telling you lies!!!!:crossx::crossx::D
Hows that pimp Fusion?;) :devil: :eek:

[Ivan Dan]

Someone has been telling you lies!!!!:crossx::crossx::D
Hows that pimp Fusion?;) :devil: :eek:
It's ok....way better than a Focus. Have you heard from Rich when Al's truck will be done?

[Cole Trickle]

It's ok....way better than a Focus. Have you heard from Rich when Al's truck will be done?
I haven't talked to Rich since Monday.
I will shoot him an email.

[dumbandyoung]

We do 6% if we sell it within our team we charge 4.75%

[womba]

Negotiating a lower commission than 6% with a good realtor can be pennywise but dollar foolish. :jawdrop:
If a realtor handles the sale and purchase of a home, who’s best interest does he/she have in mind? :idea:

[dumbandyoung]

Negotiating a lower commission than 6% with a good realtor can be pennywise but dollar foolish. :jawdrop:
If a realtor handles the sale and purchase of a home, who’s best interest does he/she have in mind? :idea:
both;)

[womba]

both;)
So if an appraisal comes in lower then a seller asking price, do you tell the seller to lower the price or tell the buyer to come up with the extra money if they want the house?

[AirtimeLavey]

So if an appraisal comes in lower then a seller asking price, do you tell the seller to lower the price or tell the buyer to come up with the extra money if they want the house?
Get another appraiser. j/k. Gotta look at the motivations/capabilities of both parties and go from there.
Commissions should be at least 6% in this market. This is a tougher market than years past, and realtors may have more costs by the time the home is sold. Also, it is a marketing tool, and it in some cases, it leaves the realtor room to neg. and help close a deal that's close. Like FOA&T said, there could be other factors like price of the home and customer loyalty, etc. that play into total commission as well. Just my .02. Good luck.

[dumbandyoung]

Get another appraiser. j/k. Gotta look at the motivations/capabilities of both parties and go from there.
Commissions should be at least 6% in this market. This is a tougher market than years past, and realtors may have more costs by the time the home is sold. Also, it is a marketing tool, and it in some cases, it leaves the realtor room to neg. and help close a deal that's close. Like FOA&T said, there could be other factors like price of the home and customer loyalty, etc. that play into total commission as well. Just my .02. Good luck.
Agreed.
These people taking listings at 2,3 and 4% are doing their sellers a disadvantage and causing them to loose time and money. One reason is... You have to realize that the average agent is selling 2-3 homes per year. So if they are in their car with a buyer showing homes the want to make sure they can get the most money for themselves. One home to them is 30-40% of their yearly income. Yes I dont agree with that at all, but its what happens. I have sold homes and been paid a discounted commission because regardless of what i was being paid, I wanted my buyer to get the home that would be the best fit for their family's needs.
I also dont feel its fair for an agent to sit in front of a seller and talk about how great they are and why you should list with them. They tell you they are going to get you top dollar for your home and they cant even get top dollar for themselves. They throw their own money away. The money they take they take home to feed their family. Think about it.. If they cant even negotiate a good paycheck for themselves, imagine what they will do when they are in the middle of negotiating an offer on your home. Are you willing to give that power over to them with your hard earned equity?
The job of a professional Realtor is to tell their client the truth. yes obviously almost any agent can go in tell a seller that they will get them a high price and charge a low commission and take the listing. why?? because they are telling them what they want to hear. Then 3-6 months later the sellers are wondering why their home didnt sell. if you were sick would you want your doctor to tell you what you want to hear? or would you want them to tell you the truth, and say hey buddy like it or not this is what we have to do to get you better(diets, surgery, therapy..basically all the stuff no one wants to do)
just my .02. please don't take it personal.

[womba]

Get another appraiser. j/k. Gotta look at the motivations/capabilities of both parties and go from there.
Ok, so lets say all other things being equal, you are selling my house but the appraisal comes in lower then my asking price. Your buyer can't come up with the extra money but they really want the house. At the same time you get an offer from another realtor for the full asking price and they have the extra money and really want the house. What would you do?
I just don't see how a realtor can represent me and have my best interests in mind when they also represent the other party. Maybe I'm missing something.
In any case, I pay 6% to my realtor unless they offer less. But I never try to talk them down. Why save $5-$10k in commision and maybe loose $20k in sale/purchase price. Not worth it.

[HM]

I paid 14% on my last sale (raw land) I paid 4% to my listing agent and 10% to the agent that brought a buyer. I also bumbed the selling price from $290,000 to $340,000 and sold it in two weeks. I had an even higher offer, but I took a "lower" offer that was all cash.
If you want to sell your house fast...offer higher commission to the agent that brings the buyer....that will get real estate agents really thinking about who they can sell your property to. If you drop the price on your house...it doesn't give a realtor any motivation to show your house to as many clients as possible - where if they make significantly more money on your home...they are very motivated to show everyone and their brother. I also had a total of 8 offers come in, and only one was a low ball. If you are willing to drop the price on your home by x%, try offering that to the buyer's agent.
My agent liked that idea so much that he has been using it in almost every sale and moves his listings faster that he ever has....and he is doing it in a down market.

[womba]

Agreed.
These people taking listings at 2,3 and 4% are doing their sellers a disadvantage and causing them to loose time and money. One reason is... You have to realize that the average agent is selling 2-3 homes per year. So if they are in their car with a buyer showing homes the want to make sure they can get the most money for themselves. One home to them is 30-40% of their yearly income. Yes I dont agree with that at all, but its what happens. I have sold homes and been paid a discounted commission because regardless of what i was being paid, I wanted my buyer to get the home that would be the best fit for their family's needs.
I also dont feel its fair for an agent to sit in front of a seller and talk about how great they are and why you should list with them. They tell you they are going to get you top dollar for your home and they cant even get top dollar for themselves. They throw their own money away. The money they take they take home to feed their family. Think about it.. If they cant even negotiate a good paycheck for themselves, imagine what they will do when they are in the middle of negotiating an offer on your home. Are you willing to give that power over to them with your hard earned equity?
The job of a professional Realtor is to tell their client the truth. yes obviously almost any agent can go in tell a seller that they will get them a high price and charge a low commission and take the listing. why?? because they are telling them what they want to hear. Then 3-6 months later the sellers are wondering why their home didnt sell. if you were sick would you want your doctor to tell you what you want to hear? or would you want them to tell you the truth, and say hey buddy like it or not this is what we have to do to get you better(diets, surgery, therapy..basically all the stuff no one wants to do)
just my .02. please don't take it personal.
I have a few friends that selected an agent by the amount of commision they charged. The lower the better. They still live in the same house. It never sold.

[womba]

I paid 14% on my last sale (raw land) I paid 4% to my listing agent and 10% to the agent that brought a buyer. I also bumbed the selling price from $290,000 to $340,000 and sold it in two weeks. I had an even higher offer, but I took a "lower" offer that was all cash.
If you want to sell your house fast...offer higher commission to the agent that brings the buyer....that will get real estate agents really thinking about who they can sell your property to. If you drop the price on your house...it doesn't give a realtor any motivation to show your house to as many clients as possible - where if they make significantly more money on your home...they are very motivated to show everyone and their brother. I also had a total of 8 offers come in, and only one was a low ball. If you are willing to drop the price on your home by x%, try offering that to the buyer's agent.
My agent liked that idea so much that he has been using it in almost every sale and moves his listings faster that he ever has....and he is doing it in a down market.
Interesting. :)

[dumbandyoung]

I paid 14% on my last sale (raw land) I paid 4% to my listing agent and 10% to the agent that brought a buyer. I also bumbed the selling price from $290,000 to $340,000 and sold it in two weeks. I had an even higher offer, but I took a "lower" offer that was all cash.
If you want to sell your house fast...offer higher commission to the agent that brings the buyer....that will get real estate agents really thinking about who they can sell your property to. If you drop the price on your house...it doesn't give a realtor any motivation to show your house to as many clients as possible - where if they make significantly more money on your home...they are very motivated to show everyone and their brother. I also had a total of 8 offers come in, and only one was a low ball. If you are willing to drop the price on your home by x%, try offering that to the buyer's agent.
My agent liked that idea so much that he has been using it in almost every sale and moves his listings faster that he ever has....and he is doing it in a down market.
:D :D
I have a few friends that selected an agent by the amount of commision they charged. The lower the better. They still live in the same house. It never sold.
i stand correct:D

[HM]

:D :D
I believe the buyer's agent on my deal looked more like :D:D:D:D:D:D

[rollin24/7]

Real Estate Commission has always been at 6% on an SFR with the past market. Now, with home sales a bit slower most real estate agents will take what they can get. Always offer the buyers agent more (this will get you more traffic) than your listing agent. I would start at 5% total (3% for the buyer, 2% for the listing agent) and go from there. If the reatlor has heartache about it then move on to the next one. You will find that most solid realtors take most any listing and that is why they are still doing well in this market. Also, this allows you a little more flexibility in the price you are trying to sell the home.
Would you rather pay your realtor $5000+ for that extra 1%, or would you rather have the flexibility to come down $5000, or help pay $5000.00 towards your buyers closing costs, to make the deal a little sweeter for them and close the deal? Just my 2 cents.

[RP2]

Agreed.
These people taking listings at 2,3 and 4% are doing their sellers a disadvantage and causing them to loose time and money. One reason is... You have to realize that the average agent is selling 2-3 homes per year. So if they are in their car with a buyer showing homes the want to make sure they can get the most money for themselves. One home to them is 30-40% of their yearly income. Yes I dont agree with that at all, but its what happens. I have sold homes and been paid a discounted commission because regardless of what i was being paid, I wanted my buyer to get the home that would be the best fit for their family's needs.
I also dont feel its fair for an agent to sit in front of a seller and talk about how great they are and why you should list with them. They tell you they are going to get you top dollar for your home and they cant even get top dollar for themselves. They throw their own money away. The money they take they take home to feed their family. Think about it.. If they cant even negotiate a good paycheck for themselves, imagine what they will do when they are in the middle of negotiating an offer on your home. Are you willing to give that power over to them with your hard earned equity?
The job of a professional Realtor is to tell their client the truth. yes obviously almost any agent can go in tell a seller that they will get them a high price and charge a low commission and take the listing. why?? because they are telling them what they want to hear. Then 3-6 months later the sellers are wondering why their home didnt sell. if you were sick would you want your doctor to tell you what you want to hear? or would you want them to tell you the truth, and say hey buddy like it or not this is what we have to do to get you better(diets, surgery, therapy..basically all the stuff no one wants to do)
just my .02. please don't take it personal.
2-3 homes a year is either a lazy agent or one that needs to get out of the bars/golf course. I no several that hit the 20-40 mark even in bad times. I would stay clear of anyone who could not close more than three houses in a years time...

[AirtimeLavey]

Ok, so lets say all other things being equal, you are selling my house but the appraisal comes in lower then my asking price. Your buyer can't come up with the extra money but they really want the house. At the same time you get an offer from another realtor for the full asking price and they have the extra money and really want the house. What would you do?
I just don't see how a realtor can represent me and have my best interests in mind when they also represent the other party. Maybe I'm missing something.
In any case, I pay 6% to my realtor unless they offer less. But I never try to talk them down. Why save $5-$10k in commision and maybe loose $20k in sale/purchase price. Not worth it.
It's ultimately the seller's decision which offer to take. Representing both parties, we cannot favor one over the other. We try to facilitate a win-win, but it's always the seller's decision in the end. I advise both clients of the advantages and disadvantages. If the second offer has the means and the first has issues, then it's a no-brainer, given all things are equal as you said. There are other factors that could come into play, and the big one would be proof of how the second will purchase the home. I usually lower my commission in a dual agency situation, but then I'm in it more for the long run, rather than a quick buck on one deal. That's the simple explanation, but most times, more things come into play, such as does the buyer have a house to sell or other contingencies, etc.

[AirtimeLavey]

2-3 homes a year is either a lazy agent or one that needs to get out of the bars/golf course. I no several that hit the 20-40 mark even in bad times. I would stay clear of anyone who could not close more than three houses in a years time...
I heard a forecast the other day that up to 70% of agents will be gone by this time next year. 2 - 3 trans. a year is probably more the average than most people think.

[dumbandyoung]

2-3 homes a year is either a lazy agent or one that needs to get out of the bars/golf course. I no several that hit the 20-40 mark even in bad times. I would stay clear of anyone who could not close more than three houses in a years time...
last year was my first full year in the business i closed more homes. this year should be double. the guys who run my team are selling over 150 homes a year each.
imagine if i didn't play on hoatboat. lol.

[cdog]

Standard rate is 6% (3% selling, 3%listing) . In a slow market like ours some will discount, or on a large transaction they will negotiate. But remember like anything else you get what you pay for. If an agent is so slow he has to list homes for far below the going rate there is a reason he probably SUCKS!!!:D :D I know that my mom owns a real estate office with about 7 realtors and there is an unspoken rule that when you are helping a buyer find a house you start with listed homes at 6%, and then 5%, and then 4%. If you still don't find a home for your buyer you must get the brokers permission to show anything listed at a lower commision. This may sound bad the real reason isn't money but for the fact that the agent and broker listing the house for a low 1%,2%,or 3% commision is such a flat out tool that the transaction becomes such a goat Faulk for everyone involved it's just not worth it.
(Sorry for the long winded post)
John
+1000000000000000000000000000000000
Could not have said it better.:)

[Cole Trickle]

Standard rate is 6% (3% selling, 3%listing) . In a slow market like ours some will discount, or on a large transaction they will negotiate. But remember like anything else you get what you pay for. If an agent is so slow he has to list homes for far below the going rate there is a reason he probably SUCKS!!!:D :D I know that my mom owns a real estate office with about 7 realtors and there is an unspoken rule that when you are helping a buyer find a house you start with listed homes at 6%, and then 5%, and then 4%. If you still don't find a home for your buyer you must get the brokers permission to show anything listed at a lower commision. This may sound bad the real reason isn't money but for the fact that the agent and broker listing the house for a low 1%,2%,or 3% commision is such a flat out tool that the transaction becomes such a goat Faulk for everyone involved it's just not worth it.
(Sorry for the long winded post)
John
So if you find me my dream house for a great deal on the MLS but they are only offering 2.5% commision your never going to show it to me?:eek:
Isn't code/ethics part of your licensing criteria?:idea:
I am happy I found an Agent that had my best wishes in mind and not the office owners.........:mad:

[cdog]

So if you find me my dream house for a great deal on the MLS but they are only offering 2.5% commision your never going to show it to me?:eek:
Isn't code/ethics part of your licensing criteria?:idea:
I am happy I found an Agent that had my best wishes in mind and not the office owners.........:mad:
Offer less than 2.5% to the Buyers agent and you’re not serious about selling your house. Hardly anyone will show it. That's just how it is. No matter what agent tells you they’ll take less if it came up they all avoid it. Some agents even have a buyer sign a broker compensation agreement of 3% and the buyer pay’s the difference. I’d never do it. But it is a business and this is how we make our living.
Do you think GM is gonna lower the price of a new corvette 10k just because it’s your dream car?
BTW I charge the same rate as you paid to friends and referrals.

[Cole Trickle]

Offer less than 2.5% to the Buyers agent and you’re not serious about selling your house. Hardly anyone will show it. That's just how it is. No matter what agent tells you they’ll take less if it came up they all avoid it. Some agents even have a buyer sign a broker compensation agreement of 3% and the buyer pay’s the difference. I’d never do it. But it is a business and this is how we make our living.
Do you think GM is gonna lower the price of a new corvette 10k just because it’s your dream car?
BTW I charge the same rate as you paid to friends and referrals.
Most agents know there getting the 2.5% commision. When Dan and I sold my Condo we used The tequnique talked about above and raised the buying agents commision as well as the listing price. when all was said and done they got 2.5% and a condo for what I had originally listed it at.
I had lots of people come and look at my condo when it was listed at 2.5%
I just think it's dangerous to limit what you will show with the tools that consumers have these days. If I was looking on the internet and found the place of my dreams and my agent said I wasn't going to show you that because my commison isn't over 3% I would tell him to kick rocks.
It would be like me selling one of my clients an expensive insurance policy when I have a program that is $500.00 less just so I can make more commision.....I would NEVER do that:)
Depends when you buy....When I got my new vette I got over 10K off;):D
I understand wanting more money but not at the exspense of not delivering the most you can to your client.

[cdog]

Most agents know there getting the 2.5% commision. When Dan and I sold my Condo we used The tequnique talked about above and raised the buying agents commision as well as the listing price. when all was said and done they got 2.5% and a condo for what I had originally listed it at.
I had lots of people come and look at my condo when it was listed at 2.5%
I just think it's dangerous to limit what you will show with the tools that consumers have these days. If I was looking on the internet and found the place of my dreams and my agent said I wasn't going to show you that because my commison isn't over 3% I would tell him to kick rocks.
It would be like me selling one of my clients an expensive insurance policy when I have a program that is $500.00 less just so I can make more commision.....I would NEVER do that:)
Depends when you buy....When I got my new vette I got over 10K off;):D
I understand wanting more money but not at the exspense of not delivering the most you can to your client.
I think we are saying the same thing. While you got a discount on the vette, I'm sure it wasn’t 1/2 below dealer at GM’s loss. Some jack ass agents offer 1-2% on the buyer’s side and wonder why nobody shows it. None the less the agents that do show will be the bottom of the barrel and do nothing correctly in the transaction.
Cheaper is not always better. If it was an unknown agent you just called on I would be suspicious of an overly cheap compensation. Lots of people don’t get this. That’s why 80% of new licenses do not renew after their initial 18 month license. The other 20% have figured out how to make a living at it. And only half of them will last past 5 years.

[Ivan Dan]

Standard rate is 6% (3% selling, 3%listing) . In a slow market like ours some will discount, or on a large transaction they will negotiate. But remember like anything else you get what you pay for. If an agent is so slow he has to list homes for far below the going rate there is a reason he probably SUCKS!!!:D :D I know that my mom owns a real estate office with about 7 realtors and there is an unspoken rule that when you are helping a buyer find a house you start with listed homes at 6%, and then 5%, and then 4%. If you still don't find a home for your buyer you must get the brokers permission to show anything listed at a lower commision. This may sound bad the real reason isn't money but for the fact that the agent and broker listing the house for a low 1%,2%,or 3% commision is such a flat out tool that the transaction becomes such a goat Faulk for everyone involved it's just not worth it.
(Sorry for the long winded post)
John
I have to disagree a little with this. I have tried the 5% thing out to the buyers agents and it didn't draw anymore activity than when we lowered the % back to 2.5%. In fact, the last 6 homes I listed/sold we offered out 5% and everyone of them ended up selling when the commission was 2.5-3% including my personal home. What I've found is that most(not all but most) of the properties that are offering out 4-7% to the buyers agents are either over priced or a dumpy house and the agent is trying to compensate for those issues by raising the commission.
IMO there isn't one agent that would turn down a sale whether it was 2.5% or 5% if their buyer loved the home. My thing is that I'm not a greedy person and if I found the right home for the buyer and I had to take less commission so be it. I would rather have them happy and call me in a few years when they are ready to sell because I found them a great house and did a great job rather than looking to make a quick $$ on the original sale. I've been selling real estate for a little over 7 years now and a majority of my business is from referrals and I believe that is for a reason.

[cdog]

I have to disagree a little with this. I have tried the 5% thing out to the buyers agents and it didn't draw anymore activity than when we lowered the % back to 2.5%. In fact, the last 6 homes I listed/sold we offered out 5% and everyone of them ended up selling when the commission was 2.5-3% including my personal home. What I've found is that most(not all but most) of the properties that are offering out 4-7% to the buyers agents are either over priced or a dumpy house and the agent is trying to compensate for those issues by raising the commission.
IMO there isn't one agent that would turn down a sale whether it was 2.5% or 5% if their buyer loved the home. My thing is that I'm not a greedy person and if I found the right home for the buyer and I had to take less commission so be it. I would rather have them happy and call me in a few years when they are ready to sell because I found them a great house and did a great job rather than looking to make a quick $$ on the original sale. I've been selling real estate for a little over 7 years now and a majority of my business is from referrals and I believe that is for a reason.
Maybe I misunderstood his statement but I thought he meant 6% total and 3%each side. I'm a firm believer of being straight and offer the home for the correct “sell today” price and with at least an average commission. Raising the price of a home and paying a higher commission to the buyer’s agent to me seams unethical. The buyer’s agent is motivated by the higher compensation and the buyer pays more than market price for the home.
The over all goal is to find a seller and a willing buyer for a product, protect your party and be compensated fairly.

[dicudmore]

Maybe I misunderstood his statement but I thought he meant 6% total and 3%each side. I'm a firm believer of being straight and offer the home for the correct “sell today” price and with at least an average commission. Raising the price of a home and paying a higher commission to the buyer’s agent to me seams unethical. The buyer’s agent is motivated by the higher compensation and the buyer pays more than market price for the home.
The over all goal is to find a seller and a willing buyer for a product, protect your party and be compensated fairly.
EXACTLY

[dicudmore]

So if you find me my dream house for a great deal on the MLS but they are only offering 2.5% commision your never going to show it to me?:eek:
Isn't code/ethics part of your licensing criteria?:idea:
I am happy I found an Agent that had my best wishes in mind and not the office owners.........:mad:
that is the kicker for us...if the house isn't priced "correctly" we will REFUSE to show it to you...if you insist on paying too much you will have to get somebody else to contract it for you--if we can not buy it UNDER market value we will move on to another property...there are over 18,000 single family homes on our Vegas MLS (last I checked totals a couple days ago)--if they don't accept our "low-ball" offer then we keep sending offers until somebody bites. "lining our pockets" comes from repeat business and referals after our clients have told their friends about the great deal we got them...

[talkinghead]

Realtors/brokers are modern day pick axe merchants.
During the gold rush era who really made the money?

[Ivan Dan]

Maybe I misunderstood his statement but I thought he meant 6% total and 3%each side. I'm a firm believer of being straight and offer the home for the correct “sell today” price and with at least an average commission. Raising the price of a home and paying a higher commission to the buyer’s agent to me seams unethical. The buyer’s agent is motivated by the higher compensation and the buyer pays more than market price for the home.
The over all goal is to find a seller and a willing buyer for a product, protect your party and be compensated fairly.
Ya I must have misread it as well.

[cyclone]

hopefully this wont jack the thread for too long but since you guys sound knowledgable i figure i'll ask....
i'm looking to buy a home that's been on the market for 97 days. the original price was 567k. a month later it dropped to 557K. its now listed for 549K with a 5K credit toward closing costs. the owner bought the property in 2003 for 300K. Comps in the area recently sold for 501K and 510K.
The house fits my needs perfectly and I'd like to buy it for no more than 500K
Would it be out of line or even unrealistic to think that I could make a 480K offer and end up bargaining my way to 500K?
I'm not sure how motivated the seller is because my agent has gotten ahold of their agent yet. This would be my first home purchase.
My agent thinks i can't get it for anything less than 525K.
what do ya think?

[Ivan Dan]

hopefully this wont jack the thread for too long but since you guys sound knowledgable i figure i'll ask....
i'm looking to buy a home that's been on the market for 97 days. the original price was 567k. a month later it dropped to 557K. its now listed for 549K with a 5K credit toward closing costs. the owner bought the property in 2003 for 300K. Comps in the area recently sold for 501K and 510K.
The house fits my needs perfectly and I'd like to buy it for no more than 500K
Would it be out of line or even unrealistic to think that I could make a 480K offer and end up bargaining my way to 500K?
I'm not sure how motivated the seller is because my agent has gotten ahold of their agent yet. This would be my first home purchase.
My agent thinks i can't get it for anything less than 525K.
what do ya think?
What do you have to lose? Write an offer up and see what the seller says....the worst they can say is no right? Make sure you have been pre-approved for your loan and your agent sends a copy of the good faith deposit check, pre-approval letter from your lender, and the front page of your credit report showing what your FICO scores are(make sure the agent whites out your social security # for security purposes before sending).

[In2Deep]

I've always wondered...
Real estate agent "X" is in California. Sells homes that average $700K sales price, with a couple of nice $1MM for icing. Works hard, but takes a few days off here or there....plays golf Wednesdays and Friday afternoons. Market is good, so houses sell well, listings come without too much effort. Sells lots of houses. Gets 6% commission.
Real estate agent "Y" is in Kansas. Sells homes that average half of CA sales price -- $350K. Let's say the market in KS is a bit tougher than CA, so agent Y has to work quite a bit harder to get listings and find buyers. Doesn't take too many days off, works a bit later, etc. Gets same 6% commission.
Somehow just doesn't seem fair.
I've seen some realtors out here in KS who bust a$$ and are top-notch.
They'd be millionaires if they moved West.

[totenhosen]

I've always wondered...
Real estate agent "X" is in California. Sells homes that average $700K sales price, with a couple of nice $1MM for icing. Works hard, but takes a few days off here or there....plays golf Wednesdays and Friday afternoons. Market is good, so houses sell well, listings come without too much effort. Sells lots of houses. Gets 6% commission.
Real estate agent "Y" is in Kansas. Sells homes that average half of CA sales price -- $350K. Let's say the market in KS is a bit tougher than CA, so agent Y has to work quite a bit harder to get listings and find buyers. Doesn't take too many days off, works a bit later, etc. Gets same 6% commission.
Somehow just doesn't seem fair.
I've seen some realtors out here in KS who bust a$$ and are top-notch.
They'd be millionaires if they moved West.
Cost of living needs to be factored into the equation, competition in CA is higher, cost of doing business right is higher etc. I think everyone here can agree that listings don't just come easily. Somewhere along the lines you paid your dues like any good salesmen.

[dumbandyoung]

Cost of living needs to be factored into the equation, competition in CA is higher, cost of doing business right is higher etc. I think everyone here can agree that listings don't just come easily. Somewhere along the lines you paid your dues like any good salesmen.
You couldn't have said it better brotha!:D

[ahhell]

had a friend who was broker/agent...sweet deal at 3%... saved me 10G's
would have been higher if she wasnt listing and selling...1% for the office