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Commission percentages for sellers

1,907 Views | 20 Replies | Last: 13 days ago by Diggity
BartInLA
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What ranges are typical? On agent said seller's typically pay 3% and they pick up the buyer's commission which is negotiable but often is 2 or 3%.

Transaction fee for seller is $325.

Don't know if I'm missing any hidden costs. TIA
Omperlodge
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What is the transaction fee?

We are seeing 2% seller's agents fees pretty regularly. Not seeing a huge drop in buyers agent commissions from 3%.
BartInLA
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I have no idea what the transaction fee is. I spoke to an agent that wasn't mine & she said their seller's fee is 3% but the buyer's fee is totally negotiable but the seller pays it and typically is between 2-3%.
BartInLA
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In Conroe a lawyer said he'd charge me a flat $1,500 fee for sale by owner. I wonder how difficult FSBO would be and how much expense the advertisement would be? I'm thinking if it doesn't sell in a month I could get an agent but if it sells in the first month I could avoid the approximately $12,000 commission fees and just pay the attorney $1,500 plus my advertising fees.
Heineken-Ashi
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BartInLA said:

In Conroe a lawyer said he'd charge me a flat $1,500 fee for sale by owner. I wonder how difficult FSBO would be and how much expense the advertisement would be? I'm thinking if it doesn't sell in a month I could get an agent but if it sells in the first month I could avoid the approximately $12,000 commission fees and just pay the attorney $1,500 plus my advertising fees.

We are in one of the heaviest supply markets in recent memory. Probably not the best time to go FSBO and limit your visibility and exposure. Especially when there's a highly respected forum sponsor here that charges 1.5% and still does full service work better than 99.9% of agents. Just my 2 cents.
BartInLA
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1.5% is a great deal. Can you tell the name of the sponsor and I will make contact? Red Pear?
SteveBott
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AG
Red offers 1.5 percent commission to sellers. Keep in mind you still should offer 3% to the buyer agents. Here is contact information for Red Pear
BartInLA
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Thank you!!!
We spoke on the phone this afternoon and he really knows real estate and I'm going to use him.
Red Pear Realty
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Sponsor
AG
Thanks for the referrals y'all! I just updated the profile email address to Jamie@MyRedPear.com. I would be glad to help you however I can.
Sponsor Message: We Split Commissions. Full Service Agents in Austin, Bryan-College Station, Dallas-Fort Worth, Houston and San Antonio. Red Pear Realty
txaggie_08
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AG
The realtors I've spoken to want their 3% for your purchase ( paid by seller), but if they also work on your sell they'll reduce their fee to 2-2.5%. Still give full 3% to buyers agent.
TxAG#2011
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Is the thought of 3% BAC still the fact a lot will dodge your house if you don't do 3%?
SteveBott
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AG
A realtor will not admit it but yes.
Red Pear Realty
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Sponsor
AG
We can't put BAC (Buyers Agent Compensation) on the MLS anymore, so now, before agents schedule showings, they will text you and ask what it is. Implication couldn't be more clear. Screenshot below from an agent yesterday:


Sponsor Message: We Split Commissions. Full Service Agents in Austin, Bryan-College Station, Dallas-Fort Worth, Houston and San Antonio. Red Pear Realty
MAS444
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AG
Don't most buyers search on line themselves now anyway? I get the buyers agents' interests in not showing something if they're getting a reduced commision...but seems like the buyers would insist if it's something they see on line and are interested in.

It's not like the old days when we could only see what our agents sent us...or are many buyers still that clueless?
txaggie_08
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AG
This is true in most cases. People do a lot of their own searching and tell the realtor what house they want to see. Really doubt a realtor is going to say no just because of the commission.

Having said that, we're currently buying a house that we were able to see before it hit the market. We're out in Midland, and a lot of homes sell off market. You have to have a good realtor that knows of the houses coming up for sale.
TxAG#2011
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The only logical reason I can see to sell your home off-market:

1. Fleece the buyer.
2. Double-dip the commission.

txaggie_08
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AG
You'd be incorrect in every case I see.
TxAG#2011
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txaggie_08 said:

You'd be incorrect in every case I see.

What do you think all the local real estate shops don't public list their offerings?
txaggie_08
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AG
Some sellers don't want a ton of showings, and it can be beneficial to a buyer keeping the listing off MLS. Appraisal district watches the MLS for list pricing on their tax evals, keeping it off of there could benefit a buyer and tax liability.

Our example: our realtor knew of a home coming on the market soon, but got us in early. We put in an offer under the price they wanted to list at hoping they'd just take it instead of going to market and deal with additional showings. They decided they wanted to give it one weekend on the market before accepting our offer. During that weekend they had some showings and one additional offer at full asking price. They ended up choosing to go with that buyer, but then that buyer backed out during option period and we ended up getting the house with a backup offer. Just passed our option period and closing on 12/15. We should have made a batter offer out of the gate, but it all worked out.
TxAG#2011
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Wait I'm sorry, what. They went to market and got only one other offer who backed out, that's nothing at all.

You weren't a backup offer, you were the only offer. Could still be sitting on the market at a lower price right now. Your realtor should have cut down your offer when they heard the other guys backed out.

But really, these local shops only do that to keep sales in house and keep out new competitors. It's anti-competition in nature. Otherwise, you are basically trying to argue less marketing is beneficial.
Diggity
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AG
txaggie_08 said:

Some sellers don't want a ton of showings, and it can be beneficial to a buyer keeping the listing off MLS. Appraisal district watches the MLS for list pricing on their tax evals, keeping it off of there could benefit a buyer and tax liability.

Our example: our realtor knew of a home coming on the market soon, but got us in early. We put in an offer under the price they wanted to list at hoping they'd just take it instead of going to market and deal with additional showings. They decided they wanted to give it one weekend on the market before accepting our offer. During that weekend they had some showings and one additional offer at full asking price. They ended up choosing to go with that buyer, but then that buyer backed out during option period and we ended up getting the house with a backup offer. Just passed our option period and closing on 12/15. We should have made a batter offer out of the gate, but it all worked out.

if you want to get the best possible price...there's no logical argument that less visibility is a good thing.

The seller doesn't/shouldn't care about that property tax implications of listing on the MLS.

This ended up being a good thing for you...so I wouldn't sweat it, but 2011 is correct that pocket listings benefit the listing agent and not the seller.


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