real estate commission rates?
My mother is trying to sell her 4 bed 3.5 bath in the best area in Hawaii. Listing for $675,000. My mother has a friend who is trying to charge her %6 for her services. I can't help but feel like she is being over charged. To boot, the agent says she is cutting her a deal. Is this the truth?
- Anonymous1 decade agoFavorite Answer
An agent can charge whatever they want to, as long as their broker agrees to it. But Yes, 6% is the going rate. I know it seems like a lot, but when you figure she will have to give 3% to the buyers agent, pay for all advertising of the home, signage etc... Not to mention, she will probably have to split her portion with her broker as well.
If SHE finds the buyer, meaning there is no other agent involved,, it is customary for there to be a reduction to 4-5%.
- Anonymous1 decade ago
There is no "legal" rate, only the typical rate which is 6%. If there is a buyer's agent involved, the listing agent will have to split it with them leaving them only 3%. Even if the listing agent had a discount rate of say 4% or 5%, the buyer's agent is still going to get the 3% more than likely because they have signed a buyer representation agreement with their buyer and their buyer isn't going to want to pay out of pocket to make up an extra 1% or 2% just because the listing agent discounted her fee. Also, if the listing agent does try to only offer the buyer agent 2% or 1%, the seller runs the risk of the other agents not showing that home as much as others because the buyer's agent wants 3%!! But in the end, commission fees are always negotiable.Source(s): Legal Assistant in the real estate industry.
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- 1 decade ago
6% is a standard commission for real estate agents. Keep in mind the commission gets split 4 ways - 1/4 to the listing agent, 1/4 to the listing agents agency, 1/4 to the buyers agent and 1/4 to the buyers agents agency. You can opt for discount brokers, but the truth is that you usually do get what you pay for. If you are going to interview other agents with a lower commission - make sure you are closely comparing what each agent will do to get the home sold.
- JustMagLv 41 decade ago
Everything is negotiable. Is 40,500 worth of work performed ? Or is 20,250 worth ? Her half of the sale. 675,000 X .06. This is no friend.
If the buyers are lining up at the door, this agent really isn't doing anything don't you think ? The buyers agents are bringing them to see the house.
Have her check out other agents and their fees. Have Mom put a Craigslist advertisment and see how many legitimate hits she gets.
Your mom should try to sell the house herself if she really needs to.
Realtors are big rip offs. Why do they always drive BMW's and Benz ? Because one sale bought them one.
I just bought a forclosed REO home for 373000 4/3 3490 sq ft and quite a buy if I might add, and only used the banks agent. Their fee, negotiated and paid for by the bank, was $9270. This agent was more than willing to do it this way and bent over backwords to make sure the deal happened The property had been on the market for 6 months. They didn't have to split the fee. I made them work for it.
Do your homework and ask around.Source(s): Investor and landlord
- longliveabcdefgLv 71 decade ago
6% is the "legal" rate. You pay the agent 6% but then she has to pay for EVERYTHING else. She might have to split it with the buyer's real estate agent. She has to take buyers to your house, advertise on line or in publications, she has to help buyers ask for loans or mortgages. Then she has office expenses and most probably has to share the commission with her real estate broker (boss) and/or franchise fees. If no one ends up buying your house, she loses money.
Problem with this over the board 6% is the agent makes the same percentage whether the property is worth 100,000 or 10 million.
- 1 decade ago
A lot goes into selling a property. I was a legal secretary & title company closer previous to getting my real estate license. I did not realize how much time and money, (advertising, brochures, etc.,) went into each and every transaction. It is a rewarding job, but very stressful and demanding. If you and your mother do not feel comfortable, contact other agents and interview them before deciding who to go with.Source(s): Real esate agent.
- Anonymous5 years ago