The home is in the Philadelphia suburbs if that makes any difference

Have you interviewed other brokers? Was this agent with one of the big companies?

We're in the same area (Montco), but moved here less than 3 years ago, our only experience was with buying.

That 6 percent will be split with buyers broker, so listing agent will prob only get 3 percent. The extra flat fee is fairly typical these days but how much varies depending on companies. Splitting the forfeited earnest money is a new one though. Never heard of that yet (and I am a Realtor). Everything is negotiable in that listing agreement. If you like him, ask him to adjust his expectations in the agreement.

Thanks for your comments. The agent is with Berkshire Hathaway, one of the larger agencies in our area. Yes, we interviewed other agents. We liked this one the best but asked her to leave the contact so we could review it before signing. I don't know if the contracts of other agents would contain similar clauses. I'm not questioning the 6% commission. It's just the flat fee which took me by surprise. I understand it's peanuts when compared to the total dollars involved but seems like an unnecessary money grab to me. That's why I was wondering if it's common.

I'm going to question the forfeited money clause with the realtor. Seems to me to be fairer if any forfeited money she receives is applied against the 6% commission earned on an eventual sale. Of course, hoping there's no forfeiture in our future to worry about!

The flat fee is probably charged by the brokerage, Berkshire in this case. It doesnt usually go to the agent. So she isn't trying to grab a few more dollars. But if you refuse to pay (have her remove from agreement that you will pay), she will probably have to pay it out of her commission because the company will expect it regardless at closing. The same commision she is already splitting with her broker and the buyers agent/broker.

All brokerage contracts are negotiable. You are expected to negotiate the listing contract. Most people don't know this. It's an anti-trust violation to set a commission. It is always negotiable.

This is what I would do. I'd strike through the forfeited deposit clause. That's a BS grab. I'd strike through the fee. That should come out of the broker's commission. It's probably a listing fee. Find out. While you will ultimately pay it, I wouldn't pay it as a fee. It should come out of the commission. Most importantly, I'd offer a 5% commission. I've gotten as low as 4.5% commission. But, this was on a cookie cutter house in a sub-division where there were hundreds of very similar homes. Then, return the contract to the agent with the strike throughs. You will get to see what kind of negotiator they are when you get their response.

You did'nt tell us the length of the listing term. Shorter is better. Never ever longer than six months. Four is better. You have to give them a chance to sell it, but you may need to get out of the contract if the agent proves to be less than competent.

Now is the time to negotiate who will be attending the showings. If you want your agent present, write it in. If you are willing to have a substitute agent from the listing agent's brokerage present, write it in. Set the showing parameters now. If you do not want open houses, now is the time to speak up. If you want the key at the office and not a lock box, do it now. I assume that no one is in residence. Make certain that they will use a good camera or photographer to take pictures of the listing. This is the most important element. Everyone shops on line now days. You are hiring this person to do a job. Make your conditions clear from the beginning.

Interesting comments about showings. The house is not vacant. My elderly mother lives there alone and I live about an hour away. I'm ok with the one suggested open house but we did plan to use a lock box. We have an option to specify electronic or keyed lockbox. Would you suggest we not use a lock box at all?

I'm Ok with the 6% commission but plan to push back on the flat fee and the forfeited deposit. You're right, this will give us a good idea how she approaches negotiations.

One of the reasons we selected this broker is because of the quality of her online listings. Although she does the pictures/videos herself, they look professionally done. My brother also recently used her to sell his house and was happy with her representation. She knows the area well and, most importantly, seemed sensitive to my mothers emotional attachment to our family home and handled it well.

I appreciate everyone's advice and comments

If your mother lives there alone, do not use a lock box. Period. She just does not need that little stress.

And be sure that you put in the option to review and approve any pictures that go into the listing. Same for the wording of the listing. There should be no mention anywhere of your mother living there.

Good luck. It's stressful in the best of circumstances!

Everything Homechef59 says above! Heck NO on the money grab of half the earnest money deposit. If the buyer cannot perform, there is no way that this is your fault. Agents didn't screen well enough or some unqualified buyer slipped through the cracks or lost a job or something. NOT your issue.

Same on the $375. Agents are paid out of proceeds, not paid a fee in advance PLUS out of proceeds. I do have one awesome agent who does flat fee though, so I pay that happily in advance, but she doesn't also collect 6% on the other end!

NO open houses at all, since Mom is in residence. A good house well-priced will move; no open house is required. An open house is merely an opportunity for the agent to meet other people looking for a home. It does little to sell your house.

Since Mom is in residence, I would REQUIRE your agent to be on hand, or replaced by a stand-in agent at all times the house is being shown.

I sent an email to the agent questioning the flat fee and telling her to strike the forfeited deposit clause. I also suggested we make the contract for three months instead of 365 days. I'll let you know what happens.

It's difficult to tell if it's priced correctly. There's currently only one other similar house for sale. It just went on the market last week. We plan on pricing at about $5k below their asking price. If demand is strong, they should both sell quickly. It's just difficult to estimate demand as we're very early in a new selling season. The two most recent neighborhood sales have been for fixer upper type houses so they really aren't comparable. I'm trusting the realtor on price.

I misunderstood the original post. I didn't think anyone was in residence. Given that your mother is in residence, NO lock box. She doesn't need to put up with unknown persons knocking on the door and letting themselves in without notice.

In your particular case, I would put the key at the broker's office. All showings must have the listing agent present, the listing agent's team members, or one of their brokerage agents present at the showing.

FYI, There is an area in the remarks in the agent's only multi-listing page that will deal with access issues. While you want to make it as easy as possible to get people into the house for a showing, you don't want to upset your mom with thoughtless agents and clients. They are out there. This notation should read something like Easy to Show, Key in Office, Occupied, Contact Agent for Appointment.

Open houses are really a thing of the past. They only benefit the agent. Even agent's only open houses are going by the wayside with the prevalence of internet pictures. Usually, semi-retired agents looking for a free lunch are the only ones that show up. Real producers don't have that kind of time to waste.

Be sure to review the pictures, the listing data, the sales language and the entry instructions placed on the MLS. Make your agent print them up for you to review. As an appraiser, I've seen some walloping errors. Then, review everything that is placed at Zillow.com, Realtor.com and Trulia.com. Sometimes there are errors.

I'd be willing to give her four months with 30 day extensions thereafter. Six percent is reasonable given the need to have an agent present at showings. I'd still try for 5.5%. How that's split is none of your business.

I don't want to know the property location, but what is the listing price? There are techniques for getting this number right in order to effectively market the property. They run in bands. That' why I'm asking. People mess this up and waste time and effort when they get it wrong.

She asked for a full YEAR listing? Hell no. If I were you, even if I like this agent, I'd watch her like a hawk. That is way out of line, IMHO.

She's agreed to a three month listing. We're still talking about the forfeited deposit clause.

Let me add that I really like this agent and I don't think she's trying to pull anything shady. She presented her firm's standard brokerage contract. It's up to me to tailor it to my expectations within reason and you've all been very helpful with your suggestions. Thanks.

Don't cave on that forfeited deposit issue. It's a very non-standard request. You probably won't ever need it, but it you do you will want full recompense for having lost marketing time. You are the one that will be damaged, your agent will still get paid when they bring a qualified buyer.

The listing contract was signed today. The realtor agreed to shorten the contract term to three months and eliminated the forfeited deposit clause. The advice received here was very helpful. Thanks!

I see your situation has resolved, but for future reference regarding the forfeited deposit clause, the key word is "forfeited." The broker was NOT claiming half the deposit on top of the commission. The broker was claiming half of deposit if a buyer walked away and had to forfeit the deposit. I've seen similar clauses in option to purchase contracts.

Consider that the broker has had to go through the process of contract negotiations, maybe inspections, etc. even if the buyer walks away. That's probably the thinking behind the clause.

I completely understand the clause. If a potential buyer forfeited their deposit, the agent would keep half the deposit. The agent would then still be entitled to a 6% commission upon subsequent sale of the house. I was not agreeable to that provision and the agent agreed to waive it.

In other good news, the comparable house I mentioned above that's been on the market less than a week had numerous showings and is already under contract.

I used Berkshire Hathaway in East Lansing, MI 2 years ago. Was a very happy with the agent and agency. It was my mother’s home, but we had moved her out all ready.

Any office of a franchise is only as good as the local agents.

The forfeited language made it into our contracts a few short years ago. I would have no trouble striking it out.

Any flat fee on top of a commission is BS. Don't pay. The office should get paid only if a sale happens. Not before.

Congrats on your pending sale! Sounds like you chose the right agent for your home. Let us know when you close so we can all celebrate with you vicariously :)