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[quote=Anonymous][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.

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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.

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And my point is that it will be a while before we see what new compensation model takes the old one's place. But I do think this probably won't play out the way you think -- either transactions may get more rocky or agents will find some different way to get their money. Hourly rates, maybe, but pay-as-you go. Or maybe fee-for-service -- want an open house? That'll be $500... Every trip to the house to let in an inspector? $200/hour. Every e-mail replied to? $200/hour, billed in 8 minute increments like a lawyer... Who knows. Remains to be seen. [/quote]

Open houses are pointless, they are just used my realtors to market themselves to future customers

You don't need a realtor to stage, you can find someone else to do it

Why should you need to rely on buyer's agent to open house for inspection? That is an artificial restriction. The buyer and inspector and seller can agree to entry terms.

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