Agent commission when selling a home

anothermom · Post by **anothermom** » Sun Oct 08, 2017 7:05 pm

What is the norm wrt agent commission when selling a home? I am told 2.5 percent for the seller agent and another 2.5 for the buyer agent. The seller agent is open to negotiation and is ok taking two percent, but is advising us to hold off reducing buyer agent commission. He thinks reducing buyer agent commission will demotivate agents from showing the house during open house. Also, the agent commission does not include staging and other stuff like painting etc, all of which might cost close to $8000 per the agent. Do these numbers look reasonable? I understand there is a always a range when it comes to price, so I am trying to figure if these numbers are within the normal range. If it matters, the home is in Bay Area

RRS · Post by **RRS** » Sun Oct 08, 2017 7:27 pm

I saw an ad from digital real estate services in local news paper saying they just take a flat fee of $15,995. If the house is worth million dollars( average price in Bay Area these days), worth calling them to ask whether they do staging for open house etc. Their number was 1-650-889-8081 and their website is www.digitalrealestateservices.com

I have not used their service nor I am their agent but thought it was cheaper than other agencies and hassle free than FSBO.

Hope this helps.

direstraits88 · Post by **direstraits88** » Sun Oct 08, 2017 10:15 pm

anothermom;663826What is the norm wrt agent commission when selling a home? I am told 2.5 percent for the seller agent and another 2.5 for the buyer agent. The seller agent is open to negotiation and is ok taking two percent, but is advising us to hold off reducing buyer agent commission. He thinks reducing buyer agent commission will demotivate agents from showing the house during open house. Also, the agent commission does not include staging and other stuff like painting etc, all of which might cost close to $8000 per the agent. Do these numbers look reasonable? I understand there is a always a range when it comes to price, so I am trying to figure if these numbers are within the normal range. If it matters, the home is in Bay Area

Do you need an agent in bay area if it's a sellers market? If you price the home right, then you just need an attorney to make an agreement.

It depends on what level of help you need to sell your home. Full service agents charge that rate while there are fixed price agents like RRS mentioned for listing in MLS.

If you don't want the hassle of coordinating, then you need an agent. Also the carrying cost of an empty house need to be considered. Can you afford to leave the house unoccupied for 4-6 months while waiting to sell at your asking price.

If you need to sell in a hurry, then an agent can do the legwork. Typically an agent spends 40-60 hours to sell a home.

If you sell without an agent and the buyer comes with an agent, then you need to pay the buyer's agent.

You may try some non-traditional methods like local temple listing if the targeted buyer is a typical desi and offer the 3% broker discount before listing in MLS. If I'm saving 25k or more as a buyer, i would definitely be interested.

Old-Spice2 · Post by **Old-Spice2** » Sun Oct 08, 2017 10:22 pm

Going with the agent may be a better idea - full service agent. Recently in Sunnyvale a SFH was sold for $800K above list price. You will not get such offers by taking the cheaper route.

The reason for high price - the house is closer to new Apple campus. Obviously some stock options millionaire did not want a long commute.

http://www.mercurynews.com/2017/09/12/now-this-is-ridiculous-782000-over-asking-for-a-house-in-sunnyvale/

GutsyGibbon · Post by **GutsyGibbon** » Thu Oct 12, 2017 2:53 am

direstraits88;663840Do you need an agent in bay area if it's a sellers market?

With Title insurance, and escrow companies all the formal processes are streamlined. Realtors are always upto speed on all the changing laws, city rules and regulations. They often have attorneys working with them. There really is too much at stake. There is no such thing as free lunch and free money. A $1M home would mean $60k in commission. You are betting that you will be able to do this $60k worth of work on your own without any experience in the field.

I have benefitted immensely from having a good family realtor represent me in several transactions. Realtors have local contacts and tricks that newbies have no clue of. You are not really paying them for the hours that they spend on the task of selling your home. It is the whole package, experience, relationships, and contacts.
https://www.forbes.com/2010/05/25/why-you-need-real-estate-agent-personal-finance-commission.html

The first time I wanted to sell my home, I had a sticker shock and did look at Forsalebyowner websites and blogs. For me #2 in the above list seemed tricky. As buyers pay no commission, they are likely to get an Agent. You are likely to have to deal with other Agents who have a lot more experience compared to a first timer. Also, the difference between a horrible agent charging 5% and the top rated agent in the city is just 1%. Even the decent agents move up to 6%. If you are going to get an agent get a top of the line agent, who is well recommended by a lot of people you trust.

techynt · Post by **techynt** » Thu Oct 12, 2017 6:56 am

My experience with agent as a buyer was very horrible, she was barely there to answer all the questions. I had to lean on a friend's mom who was a realtor long time ago to get answers to many burning questions so that I understood my rights.

A buyer agent actually is worthless unless you are going to use her to check out 20-30 homes before you finish the deal. In the end its you who is on the hook for the value of the home, if the home has defects the agent will not help you, based on one of my friend's experience. I am sure they make you sign document which frees them from all liabilities.

If I buy a new house, I wont go in with an agent, I will ask for 3% discount at the very end of negotiations. I know enough about the paper work involved to navigate it without an agent.

I will have no option but to use an agent if I am looking for an existing home, listed by realtor, since the key is available only to agents.

As a seller, it all depends on the time frame to sell the house and market conditions. If my house can sell with just 3-4 showing, I may do it without paying buyer agent, provided that the buyer is comfortable to navigate the paperwork involved. maybe for sale by owner will help with paperwork.

anothermom;663826What is the norm wrt agent commission when selling a home? I am told 2.5 percent for the seller agent and another 2.5 for the buyer agent. The seller agent is open to negotiation and is ok taking two percent, but is advising us to hold off reducing buyer agent commission. He thinks reducing buyer agent commission will demotivate agents from showing the house during open house. Also, the agent commission does not include staging and other stuff like painting etc, all of which might cost close to $8000 per the agent. Do these numbers look reasonable? I understand there is a always a range when it comes to price, so I am trying to figure if these numbers are within the normal range. If it matters, the home is in Bay Area