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Visitor
cyclone
Posts: 1
Registered: ‎02-01-2013

is 5% commission for 1mm+ house appropriate?

We're looking to sell our house in the next month or so and were wondering whether a 5% commission was appropriate or whether we could get something lower.

 

We live in a Westside neighborhood with low inventory; all of the houses that have been listed recently have all sold extremely quickly, some above asking price and with multiple offers.

 

The agents we've talked to recommend listing our house slightly above 1mm (and have all offered 5%).

 

I have no objections go with an agent (don't really want to do this myself) - just want to make sure i'm paying the lowest commission possible (while remaining fair to my agent).

 

Thanks in advance for any help!

Redfin Partner Agent
Adam-la
Posts: 1,877
Registered: ‎03-15-2011

Re: is 5% commission for 1mm+ house appropriate?

If you are truly looking for excellent service at the lowest commission rate you should consider Redfin as your partner.  

 

Eric Tan is the local listing specialist and can go into all the details about the process Redfin has to market and sell your home for top dollar at the best commission rates in the industry.   

 

His contact is here:

http://www.redfin.com/real-estate-agents/erictan

 

The chart to compare costs with Redfin's 1.5% listing fee (4% total) is here:

http://www.redfin.com/sell-a-home/how-you-save

 

Good luck and best wishes for a smooth sale.

 

 

 

Gold Contributor
lexa
Posts: 1,925
Registered: ‎05-13-2009
0

Re: is 5% commission for 1mm+ house appropriate?

it is all subjective...

 

coming from Democratic Party logic....since you're home-rich why won't you pay over 5% to pay your fair share? Heck, on Buffet rule you should pay 10% :smileyhappy:

Platinum Contributor
elt1
Posts: 4,171
Registered: ‎01-04-2010

Re: is 5% commission for 1mm+ house appropriate?

No inventory..agents are starving for work...easy to find one who will list for 1%...offer the buyers agent 2-2.5%

Silver Regular Contributor
Fishmarty
Posts: 681
Registered: ‎08-25-2012

Re: is 5% commission for 1mm+ house appropriate?

[ Edited ]

I guess everything is negotiable so is your commission, 5% or not.

 

You will find out by contacting several different agencies and go over selling details and services and find out the differences. Every home has its uniqueness and you are the only one to tell what effort is needed to sell what price to your expectation.

 

If you believe it is not much trouble selling it with x amount of price, then you would pay less commission to agents of both sides. At this point, you don't know if your offer of 1.5% (let's assume) to the buyer's agent will get her less interest to bring her clients to see your house but simply turns to other houses.

 

But you can demand less % in today's market of low inventory. At least you can ask.

Contributor
russ123
Posts: 39
Registered: ‎11-15-2011
0

Re: is 5% commission for 1mm+ house appropriate?

Interview and research your agent.  Get referrals, follow up on them and do your homework.  I paid 6% for my agent last year, I was not happy the serivce at all.  The agent sells herself like a star but after the contract was signed she was a falling star.   The agent was sloppy, she showed up late most of the time, was horrible with responses, did not know how to attract buyers and did not work towards my interest.  I got a sense that the agent only wanted a quick buck and that's an aweful feeling for a big transaction.

 

Watch out for agents that give you too low of a number too.  They can just take your listing, let it sit until you lower down your price or have you prep and do all the leg work.  

 

What you can also do is negotiate a shorter contract, maybe 1 month or 2.  If there's no result you can move on to another agent.  

 

Good luck.  

 

 

Contributor
moshik
Posts: 11
Registered: ‎01-13-2013
0

Re: is 5% commission for 1mm+ house appropriate?

My last house I sold on my own. I find very little to no value is a selling agent.
You can always negotiate the listing fee, I would say 1% to the selling agent + 2.5% to a buying agent you would probably find someone.

Platinum Super Contributor
buyinghouse
Posts: 5,877
Registered: ‎04-23-2011
0

Re: is 5% commission for 1mm+ house appropriate?

    There are people out there that prey on sellers who decide to sell without the help of any realtor. You will need the help of somebody and that somebody may be for free but costly at the end.

 

   Your house, your profit or your loss. Good luck!

Visitor
MastermindGroup
Posts: 8
Registered: ‎02-18-2013
0

Re: is 5% commission for 1mm+ house appropriate?

Commission is always negotiable. We would find a flat fee listing agent or perhaps up to 1%, and offer buyers agent 3%-4% to help sell it fast.

 

Good luck and hope it goes smooth!