Real estate commission - what is reasonable

[Anonymous]

Anonymous wrote:

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.

“Not An Agent” - You never responded to the rebuttals to your “you’re focused on the wrong things [commission]” responses on the last several topics.

Provide proof that higher compensation is correlated with what you allege. It was not provided when it mattered - during the last major lawsuits. What proof do you have that the expert witnesses didn’t ?

[Anonymous]

Anonymous wrote:

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.

DP

How did the lower commission marketing plan differ from the higher commission marketing plan ?

[Anonymous]

I just paid 0.75% commission to sell (nearly 2 mil property, excellent and high demand location, turnkey). We had a few offers and our agent was excellent navigating this to get us the best price.

Of the three offers, all wanted us as sellers to pay the buyers agent commission. One was 2% and two were 2.5%. In asking for best and final offers, one of the offers reduced the buyers agent commission from 2.5% to 2%. That tactic got them to the highest net return for us and we went with them. This is a good strategy to think about as the buyer.

Btw, look as Paul thistle who owns his own independent real estate agency. He charges 1%. I negotiated him down to 0.75% to sell. He seemed good/experienced, but I went with a compass agent who matched the 0.75% commission. I wonder if I could have negotiated Paul thistle down to 0.5%!

[Anonymous]

Anonymous wrote:

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

That’s on potential reason for leaving potential money on the table . Still curious about what OPs specific reason is .

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

That’s one potential reason for leaving potential money on the table. Still curious why ops reason is.

[Anonymous]

There is basically one way of marketing a house -- listing it on the MLS. What else is in these magical "marketing plans"?

[Anonymous]

Anonymous wrote:There is basically one way of marketing a house -- listing it on the MLS. What else is in these magical "marketing plans"?

Posting your listing on DCUM:

“Look at this Cute house!”
“Why is this house not selling?”
“Thoughts on this listing”?

That’s worth at least 10k

[Anonymous]

I've sold three houses at different commissions.

1) 10k flat fee (920k sale price)
2) 3% fee (950 sale price)
3) 1% fee (989 sale price)

Honestly, the first realtor was the best we've every used, the last was fine and it was a buyer's market. The 3% (we were in a small town and ppl tried to convince us we had to use one of the top agents), did jack sh$t, as I found the buyer myself. Still annoyed.

I'm currently involved in a complicated sale across the country, in a semi-luxury market and its turning toward a buyer's market. I'm paying 2.5% which is split between listing agent and the broker who has been handling the renting of the house/dealing with tenants which is its own special hell in los angeles. Normally I would negotiate down but since I'm not on site and its been a complicated process I'm willing to pay for what I hope is turn key service. But if I were to sell my house here today I'd probably negotiate 1.5%.

[Anonymous]

I think 5-10k is reasonable depending on price point and ease of sale, not inclusive of staging. As someone mentioned, marketing beyond great photos and listing on MLS seems useless.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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.

“Not An Agent” - You never responded to the rebuttals to your “you’re focused on the wrong things [commission]” responses on the last several topics.

Provide proof that higher compensation is correlated with what you allege. It was not provided when it mattered - during the last major lawsuits. What proof do you have that the expert witnesses didn’t ?

I have no idea what you are prattling on about. You seem obsessed with the topic. Which means you are clearly very stupid.

When I engage in real estate transactions the things that matter to me are:

1) getting the most I can for the property:
2) selling quickly
3) ease of transaction, ie a short close, little hassle with inspection item and other contingencies etc.

Commission is a minor consideration. Some of you seem laser focused on it. You’re stupid.

[Anonymous]

The last post contradicts itself completely:

getting the most I can for the property = purchase price - selling costs

By far and away, the largest selling cost is agent commission. If you really care about your listed priorities, then commission is not a minor consideration.

[Anonymous]

Anonymous wrote:The last post contradicts itself completely:

getting the most I can for the property = purchase price - selling costs

By far and away, the largest selling cost is agent commission. If you really care about your listed priorities, then commission is not a minor consideration.

DP I'm pretty sure that PP is a troll.

[Anonymous]

3% per agent

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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.

“Not An Agent” - You never responded to the rebuttals to your “you’re focused on the wrong things [commission]” responses on the last several topics.

Provide proof that higher compensation is correlated with what you allege. It was not provided when it mattered - during the last major lawsuits. What proof do you have that the expert witnesses didn’t ?

I have no idea what you are prattling on about. You seem obsessed with the topic. Which means you are clearly very stupid.

When I engage in real estate transactions the things that matter to me are:

1) getting the most I can for the property:
2) selling quickly
3) ease of transaction, ie a short close, little hassle with inspection item and other contingencies etc.

Commission is a minor consideration. Some of you seem laser focused on it. You’re stupid.

So would you pay 3%? How about 5%? How about 10%? After all, you could say that these are all "minor" amounts.

Clearly, there's some amount that's too much. You seem OK with paying a lot and defining that as "minor." Others feel differently.

[Anonymous]

There are more realtors than there are homes for sale.

https://www.stessa.com/blog/more-realtors-in-the-us-than-homes-for-sale/

Find a flat fee listing agent, pay by the hour for open house and stage if required. Realtors dont sell homes the market decides what your home is worth.

I bought/sold a house because I loved the agent said no one ever!

[Anonymous]

Anonymous wrote:I just paid 0.75% commission to sell (nearly 2 mil property, excellent and high demand location, turnkey). We had a few offers and our agent was excellent navigating this to get us the best price.

Of the three offers, all wanted us as sellers to pay the buyers agent commission. One was 2% and two were 2.5%. In asking for best and final offers, one of the offers reduced the buyers agent commission from 2.5% to 2%. That tactic got them to the highest net return for us and we went with them. This is a good strategy to think about as the buyer.

Btw, look as Paul thistle who owns his own independent real estate agency. He charges 1%. I negotiated him down to 0.75% to sell. He seemed good/experienced, but I went with a compass agent who matched the 0.75% commission. I wonder if I could have negotiated Paul thistle down to 0.5%!

Hi PP, Would you mind sharing the name of the realtor you used for your property, please?
TIA