What is the going rate right now? 5%, 6%, 7% ?

1. I'm trying to sell my house in Broomfield, CO (asking around $215K),
and I have a realtor that a friend recommended. Looks like the realtor
is a pretty experienced, reputable guy. He gave me the Exclusive
Right-to-Sell contract paperwork to sign - in the commission section
he'd printed 7%, then crossed it out with a pen and wrote 6%. Is that a
psychological trick that he's playing to make me feel I should be happy
I'm only paying 6% ?

(There's also a clause in the contract that the listing agent will get
2.8% of the gross sale price.)

I should point out that I'm planning to use the same guy to buy my new
house (also in Denver Metro.) So I'm wondering if I should mention that
when trying to negotiate a lower commission (cuz he's getting more
business from me.)

What is a lowest comission I should be reasonably able to negotiate? 4,
5%?

2. Also, the listing period he put down in the contract ends on March
31, 2006 - 5 months out. Is that normal, or a little too long (another
point I should negotiate?)

3. One last thing: Under Additional Provisions:
"At the time of closing the Seller agrees to pay RE/MAX a one time
transaction fee of $545"
Is that BS - one of those junk fees I should tell the guy to take out?

TIA for your advice.

In article .com,
wrote:
What is the going rate right now? 5%, 6%, 7% ?

1. I'm trying to sell my house in Broomfield, CO (asking around $215K),
and I have a realtor that a friend recommended. Looks like the realtor
is a pretty experienced, reputable guy. He gave me the Exclusive
Right-to-Sell contract paperwork to sign - in the commission section
he'd printed 7%, then crossed it out with a pen and wrote 6%. Is that a
psychological trick that he's playing to make me feel I should be happy
I'm only paying 6% ?

Either that or they recenyly reduced thier "standard" comission.

(There's also a clause in the contract that the listing agent will get
2.8% of the gross sale price.)

Not sure of the meaning of this. He is the listing agent and will get
the 6% (or whatever you agree on). He pays the selling agent (typically
50-50 split) and then each agent pays thier broker a fraction of what
they got.

I should point out that I'm planning to use the same guy to buy my new
house (also in Denver Metro.) So I'm wondering if I should mention that
when trying to negotiate a lower commission (cuz he's getting more
business from me.)

You can try. He doesn't have to agree.

What is a lowest comission I should be reasonably able to negotiate? 4,
5%?

Whatever you can get him to agree to.

2. Also, the listing period he put down in the contract ends on March
31, 2006 - 5 months out. Is that normal, or a little too long (another
point I should negotiate?)

Too long. Go for 90 days.

3. One last thing: Under Additional Provisions:
"At the time of closing the Seller agrees to pay RE/MAX a one time
transaction fee of $545"
Is that BS - one of those junk fees I should tell the guy to take out?

Probably a junk fee. The broker generally gets a cut from the agent's
fee except ReMax usually gets less than most brokers. May or may not be
negotable. Everything in the RE comissions is negotable, but they can
say no.

--
Rich Greenberg Marietta, GA, USA richgr atsign panix.com + 1 770 321 6507
Eastern time. N6LRT I speak for myself & my dogs only. VM'er since CP-67
Canines:Val, Red & Shasta (RIP),Red, husky Owner:Chinook-L
Atlanta Siberian Husky Rescue. www.panix.com/~richgr/ Asst Owner:Sibernet-L

Thanks, Rich

snip

(There's also a clause in the contract that the listing agent will get
2.8% of the gross sale price.)


Not sure of the meaning of this. He is the listing agent and will get
the 6% (or whatever you agree on). He pays the selling agent
(typically
50-50 split) and then each agent pays thier broker a fraction of what
they got.

A: Sorry, I misspoke. The contract says that Buyer's Agent or
Transaction Broker will get 2.8% of the gross.

thx

writes:
What is the going rate right now? 5%, 6%, 7% ?

1. I'm trying to sell my house in Broomfield, CO (asking around $215K),
and I have a realtor that a friend recommended. Looks like the realtor
is a pretty experienced, reputable guy. He gave me the Exclusive
Right-to-Sell contract paperwork to sign - in the commission section
he'd printed 7%, then crossed it out with a pen and wrote 6%. Is that a
psychological trick that he's playing to make me feel I should be happy
I'm only paying 6% ?

Probably. In Chicagoland, the usual is 5% total, fwiw.

I should point out that I'm planning to use the same guy to buy my new
house (also in Denver Metro.) So I'm wondering if I should mention that
when trying to negotiate a lower commission (cuz he's getting more
business from me.)

Negotiate. With fee for service realties out there (my listing agent
"commission" will be exactly $340, for instance, offering 2.5% to
buyer's agents), competition is stronger than ever. Getting an
agent to list you for 1% is not that hard. Listing agents
typically do jack ****.

Be sure to ask whether or not you'll be on realtor.com with the
upgraded listings that have multiple pictures, whether they'll have a
virtual tour, who will do the photos and will they take quality ones,
etc.

What is a lowest comission I should be reasonably able to negotiate? 4,
5%?

Here, if you drift below the "standard" offer to buyer's agents, your
house won't get shown much. The listing agent half of that
commission is what's most negotiable.

2. Also, the listing period he put down in the contract ends on March
31, 2006 - 5 months out. Is that normal, or a little too long (another
point I should negotiate?)

6mo listings are pretty common around here.

3. One last thing: Under Additional Provisions:
"At the time of closing the Seller agrees to pay RE/MAX a one time
transaction fee of $545"
Is that BS - one of those junk fees I should tell the guy to take
out?

Interesting question. I don't know. Typically there is a fee that a
buyers agent office pays to listing brokerage, I'm not sure if they're
looking for you the seller to pay that or what's going on with that.

Keep shoppping. And assess what you need out of a listing agent. Do
you want them to do open houses? If so how much? Will they put
signs in your area or at your house? Which level of service to they
get on realtor.com? How do their MLS listings look like online? Are
multiple photos done? Are the photos professionally taken? Are
virtual tour done? Do they put fliers out at the signs? If you
want more open houses than they're willing to do, what then? Will
there be a lockbox on your house? Do you want a lockbox on your
house? If there's an offer over the holidays and the agent is out of
town, what if any backup coverage do they have at their office?
Etc..



--
Todd H.
http://www.toddh.net/

Here in Toronto Canada the only place on earth that really matters
anyways the going rate for realtors commission is 3-4% for a multiple
listing service, exclusive rate is 2-1/4 to 2-3/4%
Strike all add-ons and pick a short date one month or less out for
expirey, its all negotiable even tho agent will lie and say its
industry standard of three months, six months, etc.

You are getting advice that is all over the place...here is my take....


wrote:
What is the going rate right now? 5%, 6%, 7% ?

That is entirely a local answer. What is typical one place is not somewhere
else. Ask several local Realtors what commission rate will that most agents
will show your property. Here is central CA 5% was very common when the
market was overheated but now 6% is more common. Listings with less than 6%
will not get shown by many agents. You want EVERY agent showing and pushing
your property? Offer above the "going rate".

(There's also a clause in the contract that the selling agent will get
2.8% of the gross sale price.)

Most markets split the total commission 50/50 between listing/selling
offices. Just be sure that the 2.8% is at least as much as most available
listings...or you won't get shown.


I should point out that I'm planning to use the same guy to buy my new
house (also in Denver Metro.) So I'm wondering if I should mention
that when trying to negotiate a lower commission (cuz he's getting
more business from me.)

As a buyer's agent, he is paid from the listing contract...not you. You may
get him to pay for your home warranty or something relatively minor. If he
is good, he won't give up much of his pay. Would you?


What is a lowest comission I should be reasonably able to negotiate?
4, 5%?

In most markets you can find someone to work for almost nothing. But you
will get exactly what you pay for. A good agent is worth much more than the
minor difference in gross commission. At a reduced commission, why should
any agent show and try to sell your house when many other listings are out
there that pay much more?


2. Also, the listing period he put down in the contract ends on March
31, 2006 - 5 months out. Is that normal, or a little too long (another
point I should negotiate?)

I rarely take less than six month listings. I pay for advertising and
marketing...why should I do that with a short contract? In a hot market, I
have taken 90 day listings if the property was priced right...but in a more
balanced market or if the price is on the high end of value, I will refuse a
listing of less than six months. All the good agents I know work the same
way.


3. One last thing: Under Additional Provisions:
"At the time of closing the Seller agrees to pay RE/MAX a one time
transaction fee of $545"
Is that BS - one of those junk fees I should tell the guy to take out?

He is just asking you to pay part of his fees to his broker. I would never
do that...but perhaps it's common in you area....check around.

TIA for your advice.

You are welcome.