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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]So we are about to list our house and have a listing agreement (not yet signed) giving our agent 5%, split with the buyer's agent. Should I counter now with 4% in light of this NAR ruling? My inclination is to give 4% and tell her to split it however she wants.[/quote]

4% is pretty standard even now. [/quote]

Why are you guys so afraid of your agents? Offer 2% to be split between the buyer and seller agent. At current prices, that's a lot of money already. [/quote]

OK, so play that out ...

2% is 1% each.

For an agent, that might be equal to 0.44% after a 50/50 split and the 6% haircut the brokers take off the top (agents typically only get 94% of their split).

So you sell your house for $1 million. The agent now pockets $4,400 from that. Out of which they have to pay for any marketing, staging (unless you pay separately for that), and pay taxes and their own license fees etc. So maybe their net is $2,500.

But that's a million dollar house. Now do it on a $500,000 house. Now it's $1,250.

[b]I'll let you tell me if that's a fair amount or not.[/b] I guess it depends on how many hours they spend on the sale.

[/quote]

The market comprising the consumers of your services decides what your services are worth. If you provide services worth 5K, they are worth 5K. If you provide services worth $1,250, they are worth $1,250. You decide if the compensation is "fair". If not, find a new job.

The point is -- absent NAR cartel-ing the industry -- the real estate industry will function like every other comparable industry driven by macroeconomic forces.

[/quote]

My in laws sold a million dollar home in the midwest last year. I think they got the commission to 5% (2.5 and 2.5).  Their broker told them they needed to stage/paint/move stuff into the garage or storage.  He had people who would do it but required my in-laws pay for it (didn't come our of commission). My in laws ended up having family over to move the big furniture and clean the house because they didn't want to pay the fee.  We told them they should have had that be part of the contract and commission.  The realtor did very little work.  He also priced it for below market value (about 100K less than it was worth) because he thought it would drum up more interest.  They got 50K above ask, but a neighbor who had a house not as nice or updated sold for even more because their initial ask was the correct price for the home!  So sometimes pricing homes low backfire.

Another family friend sold home for 2 mil and staging was part of the commission, but this was probably when commission was 5-6%

Staging, etc will now be another fee you'll have to pay for.

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