Total Commission-Going rate ?

[Anonymous]

Anonymous wrote:You all have heard of finders fees, right? Or know that political fundraisers are paid a percent of whatever donations they bring in? Or know that M&A brokers get a cut of the deal if they bring together the 2 parties? Or “strategic political advisers” get paid by Qatar for securing a big meeting for their client? Or media buy brokers get a cut of every buy?

Each of these people can make millions on a single introduction / race / ad / etc.

Compensation isn’t always a 1-1 to effort or time and anyone in business understands this.

In comparable international markets, total compensation is as low a 2% and 1%. The United States has been historically higher due to the history price fixing schemes. Anybody paying attention to antitrust law understands this.

"In competitive foreign markets, home buyers pay their brokers, if they choose to use one, and they pay less than half the rate paid to buyer brokers in the United States. These international markets include United Kingdom, Germany, Israel, Australia, and New Zealand. In these markets, which are not affected by any policy like the Adversary Commission Rule, buyer brokers are paid by home buyers, rather than home sellers. According to the Executive Director of the Consumer Federation of America, total commission rates in “a number of developed countries” range “between 1% and 4%” whereas in the United States the average total commission rates continue to remain between 5% and 6%, which is “no lower than it was in 2001” despite significant advances in technology" ~ Burnett v. NAR

[Anonymous]

Anonymous wrote:I agree. A total of 3.5% is common now but realtors are still pushing for 5% commission. They do get a sucker or two now and then otherwise business is down for them.

That's not true if you look at research that has been done since Burnett.

[Anonymous]

Anonymous wrote:

Anonymous wrote:.75% commission on a 1.5 million house is $11,000.

That isn’t chump change. You are damn right that I will get what I pay for when someone is getting that much dough out of my pocket.

Talk about focusing on the wrong thing.

why wrong thing? If you are the seller then it is your money and the right thing but if you are an agent then ofcourse you would say so. LOL

[Anonymous]

Anonymous wrote:

Anonymous wrote:I agree. A total of 3.5% is common now but realtors are still pushing for 5% commission. They do get a sucker or two now and then otherwise business is down for them.

That's not true if you look at research that has been done since Burnett.

I am just telling you what deals I have done recently. Suckers will pay more ofcourse and greedy agents would take their money.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:.75% commission on a 1.5 million house is $11,000.

That isn’t chump change. You are damn right that I will get what I pay for when someone is getting that much dough out of my pocket.

Talk about focusing on the wrong thing.

why wrong thing? If you are the seller then it is your money and the right thing but if you are an agent then ofcourse you would say so. LOL

Anyone who is smart with their money thinks about the value of services they pay for.

On a 1 million transaction, A few % is a huge amount and absolutely something to focus on.

Unfortunately because buying / selling is a house is such a time consuming and confusing event for most people, every step of the process is full of people wanting to skim off the top with the hopes you don’t notice. Realtors, loan agents, title companies, etc.

[Anonymous]

So how do you find an agent like this? We tried to sell our house last year but got no offers. A LOT was all the instability and uncertainty with the new administration. I’m unclear if my agent could’ve done more. When we signed, there wasnt really an option to negotiate rate (split 5% commission) as their boss/company set the rate.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Don't offer anything to the buyers' agent upfront. Just evaluate offers on purchase price minus whatever concessions they are asking for, and choose the highest number with the greatest certainty of closing.

For a seller's agent, 1% is easily obtainable if you look around. If you want to use some particular agent, they will probably be willing to go down to 2% or lower unless they're super busy.

What agents are working for 1 percent? That is less than Redfin.

None officially. But if you have an easy property to sell, you have leverage and can negotiate. Especially with an agent who is eager to break into your market. Play the game to your advantage. There is no set price for selling your house (some degree of tacit collusion exists out there but no commission percentages are set in stone).

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:.75% commission on a 1.5 million house is $11,000.

That isn’t chump change. You are damn right that I will get what I pay for when someone is getting that much dough out of my pocket.

Talk about focusing on the wrong thing.

why wrong thing? If you are the seller then it is your money and the right thing but if you are an agent then ofcourse you would say so. LOL

Anyone who is smart with their money thinks about the value of services they pay for.

On a 1 million transaction, A few % is a huge amount and absolutely something to focus on.

Unfortunately because buying / selling is a house is such a time consuming and confusing event for most people, every step of the process is full of people wanting to skim off the top with the hopes you don’t notice. Realtors, loan agents, title companies, etc.

LOL! YES, they get the same value if they have 3.5% or 5%. If you think cajoling clients by throwing a good champagne in your office then I have to be really stupid to accept that than 1.5% fees which could be around $15K in this area. Agents push their own people and get kick-backs so WTH you talking about.

[Anonymous]

Anonymous wrote:So how do you find an agent like this? We tried to sell our house last year but got no offers. A LOT was all the instability and uncertainty with the new administration. I’m unclear if my agent could’ve done more. When we signed, there wasnt really an option to negotiate rate (split 5% commission) as their boss/company set the rate.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Don't offer anything to the buyers' agent upfront. Just evaluate offers on purchase price minus whatever concessions they are asking for, and choose the highest number with the greatest certainty of closing.

For a seller's agent, 1% is easily obtainable if you look around. If you want to use some particular agent, they will probably be willing to go down to 2% or lower unless they're super busy.

What agents are working for 1 percent? That is less than Redfin.

None officially. But if you have an easy property to sell, you have leverage and can negotiate. Especially with an agent who is eager to break into your market. Play the game to your advantage. There is no set price for selling your house (some degree of tacit collusion exists out there but no commission percentages are set in stone).

LOl! Their boss/company is not law and ofcourse they set rates that benefits them. negotiate hard and they all come down. If you go in with the fear or hesistance of your own then this is the kind of BS answer they would give you. Don't be naive please.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:.75% commission on a 1.5 million house is $11,000.

That isn’t chump change. You are damn right that I will get what I pay for when someone is getting that much dough out of my pocket.

Talk about focusing on the wrong thing.

why wrong thing? If you are the seller then it is your money and the right thing but if you are an agent then ofcourse you would say so. LOL

Instead of focusing on things that really matter— getting top dollar, quickly, you’re going to fixate on a selling cost?

Stupid. So stupid.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:.75% commission on a 1.5 million house is $11,000.

That isn’t chump change. You are damn right that I will get what I pay for when someone is getting that much dough out of my pocket.

Talk about focusing on the wrong thing.

why wrong thing? If you are the seller then it is your money and the right thing but if you are an agent then ofcourse you would say so. LOL

Instead of focusing on things that really matter— getting top dollar, quickly, you’re going to fixate on a selling cost?

Stupid. So stupid.

DP Yes. Selling costs reduce profit.

Provide your evidence that higher commissions are correlated with higher sales price.

[Anonymous]

Every realtor I've spoken to over the last nine months has quoted 2.5% (minimum) to 4% on the sell side, and 2.5% on the buy side. Across four different brokerages, they have been unwilling to negotiate, giving me all kinds of flimsy reasons why they deserve their rate. So far none of them has convinced me that they will actually hustle to sell one of the two properties we want to list, nor do I get the sense that they will actively negotiate for us on the buy side. It's the same collusive behavior as always.

[Anonymous]

The economic term is tacit collusion:

Tacit collusion refers to an unspoken agreement among firms, typically in an oligopoly, to coordinate their actions without direct communication, often leading to stable prices and reduced competition. It can involve practices like following a price leader or maintaining similar pricing strategies without explicit agreements.

[Anonymous]

Unfortunately, the settlement in Burnett v. NAR was too weak and didn't go far enough. The settlement needed to prohibit seller-agents from offering a fixed buyer-agent commission at all or at least prohibit listing the buyer-agent commission on alternative listing platforms (not just the MLS).

[Anonymous]

When I sell, I fully intend to direct my realtor to say "sellers will consider any request for buyer-agent compensation" and leave it at that. I won't be pressured out of it.

[Anonymous]

Anonymous wrote:Every realtor I've spoken to over the last nine months has quoted 2.5% (minimum) to 4% on the sell side, and 2.5% on the buy side. Across four different brokerages, they have been unwilling to negotiate, giving me all kinds of flimsy reasons why they deserve their rate. So far none of them has convinced me that they will actually hustle to sell one of the two properties we want to list, nor do I get the sense that they will actively negotiate for us on the buy side. It's the same collusive behavior as always.

Talk to a few more. This is way way higher than normal right now. A total of 3.5-4% is the max for SFHs in DC area. If they can't even explain their process then they are not worth the salt. If you are in a HOT neighborhood then maybe sell it via Redfin.