Real estate commission - what is reasonable

[Anonymous]

We are about to do our 5th transaction with our realtor, who has been great. We broached the subject of a lower commission but she would only agree to 2.75%. Between Redfin and other realtors who are going down to 2%, we're inclined to shop around. She's with Compass and I like their private client pre-sale option, and the person who stages is also very good (we of course have to pay for that though). We don't quite buy the line that a higher commission agent is worth it, what do you think? Any any good recs for lower commission agents? We expect the house to sell for 1.5+ so the percentages here do make a difference.

[Anonymous]

Insisting 2.75% is not smart for a 1.5m house. Definitely shop around.

May I ask which neighborhood hood? Asking because we are looking to buy

[Anonymous]

Anonymous wrote:Insisting 2.75% is not smart for a 1.5m house. Definitely shop around.

May I ask which neighborhood hood? Asking because we are looking to buy

For higher cost houses, it makes more sense to pay a realtor by the hour. The hourly rate can be high but we saved 18k by doing this relative to paying the normal flat fees.

[Anonymous]

OP here - does anyone have a recommendation for someone? We meet with Redfin tomorrow.

[Anonymous]

Type into google: flat fee agent dc

[Anonymous]

2.5% on a 1.5M house is $37,500.

If the agent already has a client lined up, the idea of paying someone 2 years tuition at UVA for an hour's work is absolutely ludicrous.

[Anonymous]

Your agent basically has you pegged as idiots. You've used her four times before, so she thinks she can get away with anything. 2.5% is insane, 2.75% is basically highway robbery. If you choose to use her, just keep in mind that her opinion of you is that you're very gullible.

[Anonymous]

Anonymous wrote:Your agent basically has you pegged as idiots. You've used her four times before, so she thinks she can get away with anything. 2.5% is insane, 2.75% is basically highway robbery. If you choose to use her, just keep in mind that her opinion of you is that you're very gullible.

100%. She knows that you are more likely to stick with her just because... She's ridiculous.

[Anonymous]

I paid my agent 1.5%; my house sold for just over $1 million

[Anonymous]

Op, for this price, you should not be paying more than 1-1.25% because there is not much work from her side on this. Agreed that hire an agent by the hour or shop around. There are a few that are doing deals below 1.5% so not sure why you want to pay this high.

[Anonymous]

Anonymous wrote:She's with Compass and I like their private client pre-sale option, and the person who stages is also very good (we of course have to pay for that though).

What's preventing you from hiring that staging person yourself? Get the contact info and contact them. If for whatever reason they aren't interested, then give someone else your money.

I like their private client pre-sale option

This sounds like a pocket listing (pre-sale). How does it benefit you to limit the pool of potential buyers?

[Anonymous]

Anonymous wrote:

Anonymous wrote:She's with Compass and I like their private client pre-sale option, and the person who stages is also very good (we of course have to pay for that though).

What's preventing you from hiring that staging person yourself? Get the contact info and contact them. If for whatever reason they aren't interested, then give someone else your money.

I like their private client pre-sale option

This sounds like a pocket listing (pre-sale). How does it benefit you to limit the pool of potential buyers?

Many older buyers (60+) prefer pocket listings for privacy / less stress and aren’t sweating not maxing the pool of buyers and corresponding sale price

[Anonymous]

It really is crazy how sellers just willingly hand over so much to sell their houses. Lots of agents will do 2.5% and include staging with their furniture. I think that's still too high, but the fact that this agent -- whom you've used four times before -- wants you to pay 2.75% plus the cost of staging is wild. Instead of valuing you as a repeat client, the agent is treating you like dirt.

[Anonymous]

Anonymous wrote:We are about to do our 5th transaction with our realtor, who has been great. We broached the subject of a lower commission but she would only agree to 2.75%. Between Redfin and other realtors who are going down to 2%, we're inclined to shop around. She's with Compass and I like their private client pre-sale option, and the person who stages is also very good (we of course have to pay for that though). We don't quite buy the line that a higher commission agent is worth it, what do you think? Any any good recs for lower commission agents? We expect the house to sell for 1.5+ so the percentages here do make a difference.

Talk about focused on the wrong things.

But good luck and understand you get what you pay for.

And before I am accused of it, I'm not an agent or connected to the industry in any way. I just find these people who obsess about agent compensation more than they focus on what their house sells for or how quickly it sells or the marketing plan or a thousand other more important things are beyond dumb.

You have someone who you trust, who you say "has been great." This person has gotten results for you four times in the past. And you're willing to chuck that relationship because you think the grass is greener and you might get to pay a lesser agent less.

Make it make sense.

[Anonymous]

Anonymous wrote:Your agent basically has you pegged as idiots. You've used her four times before, so she thinks she can get away with anything. 2.5% is insane, 2.75% is basically highway robbery. If you choose to use her, just keep in mind that her opinion of you is that you're very gullible.

This! We are selling as well and called a realtor we have used twice before. He came in with not much of a pitch. Gave a list price of 1 mil and said 2.5. Then we mentioned we were shopping around. 2.25. Just chatted some more. He offered 2. We said thanks and we will let you know in a few. All of a sudden, we got a marketing plan and what-have-you. The thought that he was competing with someone made a huge difference.