Real Estate Agent Fees


J

Jimmy Clay

I live in the Dallas Texas area, and I'm going to sell my house. I've had a
real estate team look at my house (they're just two ladies who work
together), and I like them, but they charge a 6% fee once the house is sold.
So if I sell the house for 90,000, they get $5,400. I don't mine paying a
fee because I've not a clue on how to sell the house and I'm wanting to sell
it now not later.

My question is this: If I had an single agent selling the house (not a
team) would the fee only be 3%? Or is the 6% standard for the Dallas area?

--
Thanks,
Jimmy Clay

Read a free ebook,
The Song of the Coyote
http://thesongofthecoyote.tripod.com/
 
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J

Jimmy Clay

Thanks for the reply. I do like these ladies, I even used one of them to
sell my previous house and she sold me the house I'm in now. But if I could
save 3% I would shop around, but if that's standard then I'll stick with
them.

--
Thanks,
Jimmy Clay

Read a free ebook,
The Song of the Coyote
http://thesongofthecoyote.tripod.com/
 
H

HW \Skip\ Weldon

Of course, I've never really seen how a listing agent "sells" a house - most
sales are made from buyers getting listings from the MLS from their agent.
They can put ads in the newspaper and have lots of open houses, but most
agents will tell you that they get very few sales from soley from ads and
open houses. Serious buyers are working with agents who get listings from
the MLS.
I've always considered this a primary argument for using a realtor to
sell your house - because many buyers do. And by turning away
realtors, you turn away those potential buyers.

Admittedly though, this applies best in the higher end of residential
sales. Few people who command higher incomes spend their weekends
peeking in windows. <grin> They have realtors for that.

But in the more modest price categories, and providing I were on a
high-traffic street (or near one), I might try it myself first.


-HW "Skip" Weldon
Columbia, SC
 
J

John R. Reyes

Pay the fee, it's worth it and get on it, now. Most sales are made now
through August, after that sales drop off dramatically. I used a broker,
I'd known for 20+ years. She listed the property in late May, spent 2-3
weeks getting home ready for sale, we sold it to the first looker, and
closed on July 10th!

My broker had so many contacts in the Dallas area, she located a potential
buyer nailed down for us, by the time we were ready to show it, in June.
We were more than happy to pay her commission.

Good luck,
John
 
J

JJ

I didn't mean to imply that I was advocating not using a realtor. In fact,
unless one really knows what one is doing, I think it's best to use a
realtor - if anything, because of what you pointed out. They have the "keys
to the kingdom" - a virtual monopoly over the MLS.

But I'm not so convinced about the justification for the standard 6%
commission. Do realtors really do 3 times as much work to sell a $300,000
house as compared to a $100,000 house? (If anyone says yes, please explain
how. I've bought and sold both types of houses as an owner, and to me, the
$300K house sells itself a lot *easier* than the $100K house.)

IMHO, the three things that sell a house are: market conditions
(economy/interest rates), price, and the MLS.

That's why I find some of the new alternatives intriguing. Some will handle
things for a fixed price (not a percentage) and have access to the MLS.
Sure, if the buyer is using a realtor, that realtor is going to want their
3% - and I don't have a problem with that. That agent brought the buyer to
me and I'm not going to turn them away. But when another agent brings a
buyer to me, what did the listing agent do to sell the house? Except for
perhaps administering the negotiation, not much. Why do they want the same
amount as the agent that actually brought me a buyer?
 
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W

Winter QQ

Why do they want the same
amount as the agent that actually brought me a buyer?
Your contract is with the agency-not individuals within it. They split up the
fee based on reasons that make business sense for their agency. The person who
sold the house would not even be selling it if the other person had not gotten
the listing with the with the agency. Figure out if it is worth a certain
percentage to have the agency sell it and then dont worry about how the fee is
split up.

Also, the length of time that the house is to be listed is totally under your
control.
They will all tell you a year is standard but I would not go for a year. On the
other hand, you should list it long enough so that the agents have a reasonable
shot at selling it and are motivated to put time and expense into doing so.

Dennis
 
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