approx what percentage do real estate agents get when they sell your home? - Xmastips

approx what percentage do real estate agents get when they sell your home?

Home Forums Buying Your Home approx what percentage do real estate agents get when they sell your home?

This topic contains 8 replies, has 2 voices, and was last updated by  admin 3 years, 5 months ago.

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  • #36627

    admin
    Participant

    i live in pa and want to sell but i want to make sure i at least make 15,000 on it. what estimated number do they receive? is it better to do a sale by owner?

    #159837

    admin
    Keymaster

    Real estate commissions generally vary between 5% – 7% of the gross sales price on residential sales. The total commission is split between the selling broker and the listing broker. The brokers generally give the sales person half of whatever the broker takes in but that can vary a bit.

    If you sell a home for $ 100,000 that was listed by someone else your share would normally be about $ 1,500. If you listed a home and someone else sold it, you’d also get $ 1,500. If you listed AND sold the house, you’d get $ 3,000. Those are based on an average 6% commission.

    #159838

    admin
    Keymaster

    About 6 percent. It must be specified if you engage a real estate agent to sell your home for you.

    #159839

    admin
    Keymaster

    The fees generally vary depending on your market and the price range of the house.

    However, generally the closing costs including commission will be about 10% of the sale price (Commission rates usually run about 6-7%).

    You may try to sell it on your own, it is certainly your right, but unless you live in a highly desirable area, you will be hard pressed to match the exposure a good Realtor can provide, at any cost.

    Good luck with the sale of your home. If you need a referral to an agent in your area please visit my site.

    #159840

    admin
    Keymaster

    Industry average is that the 2 Realtors (buyers & sellers) split 5-10% commission. If houses are selling relatively fast in your area you will probably get a realtor’s contract around 6%.

    As far as the FSBO, a lot of money goes into marketing your home. If you use a good realtor, they spend the money to advertise your home before they make one thin dime from your house. Also, most reputable realtors have title companies, home inspectors and other at their beck and call. If you sell yourself you will need to find out all this yourself.

    Don’t forget to figure in around a grand for lawyer’s fees. Selling a home can mean contract problems, title problems and then the registration of the deed, unless you are very knowledgable about the law you need professional help to negotiate the path.

    #159841

    admin
    Keymaster

    If you think your home is extremely marketable, shop and shop for a broker or realtor that will negotiate. I have never paid more than 3 percent.

    #159842

    admin
    Keymaster

    There is just about every fee for every service level you could need, nowadays. You could go completely FSBO and pay nothing, you could pay a flat fee up front to advertise in the local MLS without representation by an agent (usually a few hundred to a thousand dollars), there’s the help you sell variety that offers a sliding fee based on what services you want, there are discount brokers who may offer to sell your house for as little as 4%, and full service companies who usually charge in the 6-7% range.

    Keep in mind you get what you pay for. It has been statistically proven that hiring a Realtor earns you 7-15% more on the price of your home versus selling FSBO. This is because buyers automatically discount your price because they know you are not paying a Realtor. You may think you’re saving money, but in the end it hurts your bottom line.

    If you have never sold a home before, you should probably stick with the full service companies for your first time. They take care of all the details, and it is a good way to learn the process. Once you’ve sold a few homes, and you feel comfortable with the process, you could probably get away with a company that offers sliding fees based on service. Just remember, there are good agents and bad agents in every model, so be sure to get recommendations from friends and family who have sold homes, and interview several before you hire one.

    #159843

    admin
    Keymaster

    There are “budget” realty companies out there who will tell you that they will sell your house for 1%. What they do not tell you is that all you get for 1% is a sign in your yard, not advertising or listing on the MLS. If they want more than 6% I wouldn’t work with them.

    #159844

    admin
    Keymaster

    In our area, it is 5%-6%. There are brokers out there in some areas that will discount off of those rates. One that I’m signed up with is Ziprealty, although I’m sure there are others. Basically, they offer to give you 25% of your commission back. There are other firms that will cut rates further, but the key is what you get for those rates. If it is an agent that is in essence requiring the buyers agents to do all the work, other agents will not work with them, and will bypass your listing (this comes from my brother, who is general counsel for one of the largest real estate brokers in the country). Unless you are in an area where the market is still hot, I think you need to be on MLS. The company I work for built a condo project, and had a substantial ad budget behind it…but all the leads were coming from MLS…which tells me that MLS is essential. However, when I sell my house later this year, I am going to try to minimize what it costs to get me on there.

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