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Is a 5% Broker/Agent Fee the going rate now?

1,787 Views | 7 Replies | Last: 1 yr ago by LMCane
LMCane
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An Agent from REMAX in Maryland who I like and have met with twice gave me the proposed contract which calls for 5% fee.

does that sound correct based on the economy right now?
XXXVII
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agnerd
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AG
Counter with 1%.
Diggity
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AG
I'm assuming that is the amount split between both brokers.

If that's the case, 1% won't get you very far.
Red Pear Luke (BCS)
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LMCane said:

An Agent from REMAX in Maryland who I like and have met with twice gave me the proposed contract which calls for 5% fee.

does that sound correct based on the economy right now?


They are absolutely going to split that 5% down the middle and take 2.5% for themselves and 2.5% for the broker responsible for bringing a buyer. So really it's only going to be 0.5% decrease from what they'd normally make.

That being said - I know you're based out of the DMV area and average house prices are way higher there. So it's not uncommon for homes with a higher price tags to have a lower commission for selling because that 6% normally starts getting a bit excessive even by the "traditional" realtor standards.

That being said part 2 - if I had a client who brought me a home around that $800-$1M+ range, I'd have no problem reducing my commission to 1% to sell provided I knew said client wasn't going to try to egregiously take advantage of my time and abuse me. I find it very hard to justify why it should cost $60,000 (split down the middle) to sell a house in any market. But of course - a fool and his money are soon parted.
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LMCane
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Red Pear BCS Luke said:

LMCane said:

An Agent from REMAX in Maryland who I like and have met with twice gave me the proposed contract which calls for 5% fee.

does that sound correct based on the economy right now?


They are absolutely going to split that 5% down the middle and take 2.5% for themselves and 2.5% for the broker responsible for bringing a buyer. So really it's only going to be 0.5% decrease from what they'd normally make.

That being said - I know you're based out of the DMV area and average house prices are way higher there. So it's not uncommon for homes with a higher price tags to have a lower commission for selling because that 6% normally starts getting a bit excessive even by the "traditional" realtor standards.

That being said part 2 - if I had a client who brought me a home around that $800-$1M+ range, I'd have no problem reducing my commission to 1% to sell provided I knew said client wasn't going to try to egregiously take advantage of my time and abuse me. I find it very hard to justify why it should cost $60,000 (split down the middle) to sell a house in any market. But of course - a fool and his money are soon parted.

great advice-

correct it's the DMV but the townhouse is going to be marketed for only around $500K

should I ask the realtor to lower it-

she is already bringing in all her "staging" furniture to replace everything in the house when I pack up. even though my stuff is nice, it's a bachelor so she has everything for professional staging.
dc509
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AG
LMCane said:

Red Pear BCS Luke said:

LMCane said:

An Agent from REMAX in Maryland who I like and have met with twice gave me the proposed contract which calls for 5% fee.

does that sound correct based on the economy right now?


They are absolutely going to split that 5% down the middle and take 2.5% for themselves and 2.5% for the broker responsible for bringing a buyer. So really it's only going to be 0.5% decrease from what they'd normally make.

That being said - I know you're based out of the DMV area and average house prices are way higher there. So it's not uncommon for homes with a higher price tags to have a lower commission for selling because that 6% normally starts getting a bit excessive even by the "traditional" realtor standards.

That being said part 2 - if I had a client who brought me a home around that $800-$1M+ range, I'd have no problem reducing my commission to 1% to sell provided I knew said client wasn't going to try to egregiously take advantage of my time and abuse me. I find it very hard to justify why it should cost $60,000 (split down the middle) to sell a house in any market. But of course - a fool and his money are soon parted.

great advice-

correct it's the DMV but the townhouse is going to be marketed for only around $500K

should I ask the realtor to lower it-

she is already bringing in all her "staging" furniture to replace everything in the house when I pack up. even though my stuff is nice, it's a bachelor so she has everything for professional staging.
I'm surprised that it isn't 6%. Personally, I would pay the going rate and get the property moved. Haggling with your realtor over a point or two on the fee isn't being a shrewd negotiator.
LMCane
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dc509 said:

LMCane said:

Red Pear BCS Luke said:

LMCane said:

An Agent from REMAX in Maryland who I like and have met with twice gave me the proposed contract which calls for 5% fee.

does that sound correct based on the economy right now?


They are absolutely going to split that 5% down the middle and take 2.5% for themselves and 2.5% for the broker responsible for bringing a buyer. So really it's only going to be 0.5% decrease from what they'd normally make.

That being said - I know you're based out of the DMV area and average house prices are way higher there. So it's not uncommon for homes with a higher price tags to have a lower commission for selling because that 6% normally starts getting a bit excessive even by the "traditional" realtor standards.

That being said part 2 - if I had a client who brought me a home around that $800-$1M+ range, I'd have no problem reducing my commission to 1% to sell provided I knew said client wasn't going to try to egregiously take advantage of my time and abuse me. I find it very hard to justify why it should cost $60,000 (split down the middle) to sell a house in any market. But of course - a fool and his money are soon parted.

great advice-

correct it's the DMV but the townhouse is going to be marketed for only around $500K

should I ask the realtor to lower it-

she is already bringing in all her "staging" furniture to replace everything in the house when I pack up. even though my stuff is nice, it's a bachelor so she has everything for professional staging.
I'm surprised that it isn't 6%. Personally, I would pay the going rate and get the property moved. Haggling with your realtor over a point or two on the fee isn't being a shrewd negotiator.
that is very helpful.

it's difficult to decide about trying to sell in this market- but if I want to buy in Florida in an even nicer neighborhood for long term than I think it makes sense to get rid of the Maryland property first.
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