How much commission should we pay?

15 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.

Sort by:Oldest

Comments (6)

ctracy56
15 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
lyfia
15 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?
Related Discussions
How much did you pay or should I pay for a DCS installation?
Q
Comments (3)
I paid $100 six years ago to have the DCS installed. It was done by a plumber sent by the appliance store where I bought it. They have to hook it up and check the flames - that's about it. $250 seems a bit high - does that include delivery or is delivery a separate charge.
...See More
How much should we pay for this tile?
Q
Comments (1)
Let me start off with the disclaimer: I know only some basics about tile, and I have never installed any. But, I love a bargain, am not afraid to DIY, and have learned to value my time/energy. I'd look around at similar tiles from several sources, tiles you would not have to fuss with. Get a sense of what comparable tiles AND install would cost. Then price the discounted tile AND installation. Be reasonable and plan on two days tool rental and the 180 sf of tile DH wants to buy. Then you need to weigh how much you love that look tile vs any other look, the cost difference between no fussing and cutting every tile, and the amount of work involved. My guess is the answer will be easy after that, though I can honestly say I don't know which way.
...See More
how much should I pay for a pro kitchen design?
Q
Comments (6)
Thanks for the replies! We met with her and I LOVE the design. The total (without custom work for the banquette and the time for GC, demo, etc) comes to just under $14K. I have a budget of $20K (not including flooring) without appliances. I'll be tight, but it may just work. We talked in detail about buying the plans off of her or going to a Kraft Maid and although she's find with it, she charges $95/hour for design time and $65/hour for something else, can't remember...anyways, she said she would want to go with me to have the other estimate so that it would be apples to apples, of course she also said that it would be more time for her to adjust the plans for other cabinets, for example certain depths come standard in her maker that may not in a KM or similar. Sooooo, I'm not sure but I'm leaning toward giving the job to her. She comes HIGHLY recomended by my GC (who I adore!) and I trust him whole heartedly. He has also tried to stay impartial for me, which I appreciate and is having me pay her direct (he really is amazing, doing the same thing with tile guy, etc.) -- he's honest and fair. Lastly, the cabinet company (and her design company) stand by their work, she said within reason, they will just come out and replace, no matter what...no jumping through hoops...I liked the sound of that, as we're not planning on moving EVER AGAIN. haha, we've had 6 moves in 7 years, exhausting. Anyways, I need to go look at the finishes and glazing options tomorrow. Oh and I should add that the option w/out glaze only took it down $1000, and with the fake wood (can't remember the name..malinate??? something) only another $1000, just doesn't seem worth it to me.
...See More
How much should I have to pay for an extended warranty?
Q
Comments (9)
Ok, sounds like you had a bad associate at sears helping you out, or you possibly didn't let him/her go over it fully. So I'll explain it in detail real quick. Normal warrenties cover for defects and that's it these days. The typical extended warrenty takes that coverage and extends it out to 3 or 5 years, then they normally add in power surge protection and a no lemon policy to where if the same problem occurs 4 times within 12 months then they replace it, however the plan then expires upon replacement. The main downside is that the service is almost always done through a 3rd party company that attempt to chickenscratch their way out of giving you a repair without charging you. The sears PA covers just about anything as long as you aren't using the machine for commercial purpouses and/or intentionally breaking it. With their no lemon it can be ANY 4 product failures within 12 months or if they just flat out cant fix it for any reason, and then when the product is replaced the plan still continues without you having to purchase it again. So even if you have to have your washer replaced 3 times you buy the plan just once. You still get powersurge protection, and it also covers cosmetics for the first 3 years which would be very nice if you got a color with your LG machine. Now the main advantage to the sears PA is the service checkups each year. They send out a tech at your request to do a full checkup/tune up on the machine. They run individual checks on the cycles, check water temps, spin/drain cycles, bearings, belt systems, suspension, hoses, pump, electrical connections and grounding, and level the machine as well. By doing so it's going to keep the machine running smooth and help prolong the life of it, because whenever you have moving parts, particularly at those speeds, it will wear down the machine through time. Then there's also the factor that there are many problems that can be caught and fixed before it becomes a serious problem...just like when you hear a rattling in the back of your car :p Also, another way I look at it is that throughout a year I spend around $1200 on car insurence....suddenly 250 for 3 or 5 years doesn't seem so bad. And you do get a LOT of use out of your washer. Personally I buy the PA on everying as long as they come out to my house to do the work, but if all you want is a standard extended warrenty then you can purchase that from another 3rd party company....I highly recommend giving sears a chance though. There's also the fact that when you get it you only deal with sears which is nice.
...See More
Linda
15 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.
landmarker
15 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.
jy_md
15 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.
dirtdigging101
15 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.

How much commission should we pay?

Comments (6)

ctracy56

lyfia

Related Discussions

Linda

landmarker

jy_md

dirtdigging101

COMPANY

BUSINESS SERVICES

GET HELP

CONNECT WITH US