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How much commission should we pay?

18 years ago

We are thinking about using the same agent to sell our house that is also representing the sellers of the house we want to buy. She is quoting us her regular commission rate of 7% to sell our house and she is also getting her regular rate from the other sellers. We are the only people she had to show the house to before they accepted our offer. Should we try to negotiate a lower rate for the sale of our house or go with a different agent? It seems that she is making quite a bit of commissions for very little time and effort.

any feedback would be appreciated.

Comments (6)

  • 18 years ago

    Dont know where you are but the average seems to be 6%. I would try to negotiate since she is also the agent for the home you are buying. Also, talk with other agents to see what they are looking for in a commission

  • 18 years ago

    That sounds way too much! When we did that when buying our old house he only did 4.5% to sell ours. 3% to buyers agent of who bought our house and 1.5% to him for selling our house as he was already getting the commission from the one we purchased which was 3% as he still had to split it with the other listing agent.

    Sounds like the one you are getting it from will get the full 7% from the sellers of the house and then on top of that wants more than the national average.

    What is the standard commission in your area? Do you think she would do an awsome job to warrant that commission? What would she actually be doing? How much goes to the buyers agent of that 7%? The more the better for you as far as agents bringing buyers.

    Have you interviewed other agents and how does she compare?

  • 18 years ago

    The commission she is making on the house you are buying has nothing to do with the commission rate of your home.She could have put 6 months of work into the listing and never shown it once. You being the first one she has shown it to doesnt necessarily mean she hasnt had to put much effort into selling it. The work for a listing agent comes before AND after a buyer is found. The work for the selling agent comes before AND after a buyer makes an offer.(every once in awhile the first house an agent shows to a new client is the one they purchase, this is the icing on the cake).

    What you need to know is what is the customary commission rate in your area and what the agent does for that percentage. Some will simply put you in MLS and charge "the customary rate", others will do virtual tours, web advertising, enhanced features on realtor.com, hardcopy advertising, open houses both public and broker etc. If the commission rate is not comparable to what other homes in the area are listed for your house isnt competitive. That said, there is always room for some negotiation as long as you still keep it competitive with other homes but you have to look at what you are getting for the commission, not just the rate.

  • 18 years ago

    Round here, the commish is 5%. Reading more into your post, it is dangerous to buy a house without selling yours first in this market.

  • 18 years ago

    Is there a reason why you want to use her as your selling agent? Have you interviewed other agents? That's what I would do before signing anything. During interviews, find out what the going commission rate is. Then negotiate with whomever you choose.

  • 18 years ago

    many here in nc are doing 3% on a 200,000 dollar hme that is enough. i multiple listed mine for 400 dollars and stated in the listing 3% to any agent who brought me a buyer.