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Old 07-29-2006, 06:19 AM  
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Default realtor fees on a quick sale?

A couple houses in my area that were for sale interested me so I called a realtor lady I knew and we took a look at them. I told her I haven't decided if I want to move yet, but I would think over the next week while on vacation. The realtor told another lady in her office that I may be selling and she has a client looking for a house like mine. She told him I was out of town do go over an look around. I guess he walked the yard and peeked in the windows and wants to see more. We arranged that they show the house to him later today.
My realtor told me since I haven't formally listed the house with her, she will bring a form that is for a single time use. I guess they worry that the buyer will come back and work a by owner deal. Fair enough.
The commission part is what I am thinking about. Typically if I listed my house on the open market, the commission to the buying realtor might be 2.5%. My realtor said if I buy the next house with her, she would only charge 1% on my sale, for a total of 3.5%. BTW the houses I am buying and selling are in the mid $600K range, so we are talking $23,000 sales commission. That seems like a lot for one showing, bam sold!(assuming he wants to buy it).
I know if I can sell a house in one day without even listing it, I should be happy, but still $23K for so little time invested. The housing market has been quite slow here lately and there are a lot more houses for sale in my town than most years. People are talking lower prices, giving more concessions, and etc. I think the realtors should share part of that.
Should I try to get the buying agent to go to 1.5% or 2%? The listing agent will be making $15K on the house I purchase if this all goes through, so I am sure she will negociate.


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Old 07-29-2006, 09:41 AM  
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I use to sell real estate and I agree with you. The problem occurs when they list it in MLS. MLS needs their cut, the selling realtor needs their cut, the selling realtors office needs their cut, the lister needs their cut and the listers office needs their cut. If you can truly limit some of these people from getting their cut, then you should be able to deal but most offices have strict policies about this, unless of course you go to a discount broker.

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Old 07-30-2006, 04:35 AM  
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Originally Posted by CraigFL
. If you can truly limit some of these people from getting their cut, then you should be able to deal but most offices have strict policies about this, unless of course you go to a discount broker.
It's called price fixing.
I wish I could charge by commision. "Ok so I fixed your garage door, the garage is worth about $20,000 and my rate is 2% so that will be $400."
"but it only took you a half hour"

To be honest having the person who wants to buy took some time and $. Around here stuff may last 2 weeks tops and averages well into the 600's. One agent had a bunch of new houses they were listing and was in line for $$$$$$$ and she told me that $50 an hour could get expensive. Her hourly on these sales was probly like $1000+
So I am a bit about them
Everyone is entitled to their own opinion, but not their own facts
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Old 09-30-2006, 10:38 PM  
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Where I live we normally charge 6% to sell a property. Example- Agent A works for Broker A and lists Seller A's property; Agent B who works for Broker B sells Seller A's property. 3% goes to Broker A and 3% goes to Broker B. How each Broker divides commission varies. My Brokers pays their agents 60% of the commission they receive. Other offices will give 50% and some will give agents 75%. If we have a one client listing we usually charge Seller 3%. It is customary to cut commissions to make the deal work. I rarely get a 6% commission these days. In the situation you mentioned above, I would not charge you full commission on $600,000. If I had the listing a day, I would cut the commission way back. If I was the listing agent and selling agent then I would probably charge you $10,000 or less. My Broker would get $4000 and I would receive $6000 on a $10,000 commission. Not bad for a day. LOL. After the contract is written there is a lot of follow up to get property to close. We do a lot more than you realize. It sounds like a lot of money, but we do work hard for it in most cases.
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