THE REALTORS 6% COMMISSION. IS IT FAIR???????? - Posted by Al Miller


#1

Posted by SJLEEKER on January 06, 1999 at 12:17:47:

Roy,you are right on the mark! I charge sellers 7% on foreclosures and investment properties. It takes a lot of contact marketing to get a good offer and get it accepted in less than 4 weeks. In 1998, 40% of my listing sold before they were listed. The other 60% sold in less than 21 days and the ratio of final price/original price was 98%. I have found that about 20% of sellers are willing to pay 7% for that type of service.

Steve Leeker


#2

THE REALTORS 6% COMMISSION. IS IT FAIR??? - Posted by Al Miller

Posted by Al Miller on January 05, 1999 at 15:26:20:

If a Broker sells a million dollar property and a
hundred thousand dollar property and its the same amount of work for the broker and the escrow company how do you justify a $60,000 commission vrs a $6,000 commission. Doesnt it make sense for investors to negotiate?


#3

Re: THE REALTORS 6% COMMISSION. IS IT FAIR??? - Posted by Kristin

Posted by Kristin on January 06, 1999 at 10:43:39:

Not all realtors do the same amount of work on the same type of properties. Find a good realtor who really works for you as the seller, and you won’t be as concerned about the commission. Also,if you work solely with one realtor to list your properties, and you can send them listings in volume, a lot of realtors will negotiate to a lower commission in order to capture all of your business.
I generally pay 6% for the first listing with a realtor when we start working in a new city, then 4% per deal thereafter.
Also, you might consider a clause in the listing contract that states that if you or your partner (if applicable) find the buyer, the listing agents commission is reduced by whatever percentage you can both agree on.
On one of my higher priced houses (725K) The realtor agreed to 4% if we would pay separately for the advertising expenses, which are always higher in that price range. If we didn’t want to pay the ad costs, we would have paid a 7% commission.
Just a few suggestions.
Good Luck
Kristin


#4

I PAY REALTORS 8% - Posted by PBoone

Posted by PBoone on January 06, 1999 at 09:11:19:

The comission paid to realtors is usually paid by the seller, with that in mind who cares how much they make on a sale.
When we list a property with a realtor we pay 8% if sold the first month on the market. This figure is always built in when we purchase for resell.
Pat


#5

That’s OK, I charge 7%!!! - Posted by Mike-DFW

Posted by Mike-DFW on January 05, 1999 at 22:26:06:

There is no set commission amount in any state that I know of. You are free to try and negotiate any deal you want. I personally won’t go below 6% because as a listing/sellers agent you usually have to pay the buyers agent 3% and I don’t work for peanuts.

As for your example about the 1 million vs 100k property, there are alot more buyers for the 100k house so it will require less work and expense to sell.

Mike


#6

Tell you what, pal… - Posted by Soapymac

Posted by Soapymac on January 05, 1999 at 19:03:07:

Get your license here in Massachusetts…I’ll put you to work. Right here. With me.

The company I associate with (I’m a RE agent) has homes in the six and seven figure range.

Now ask me about the amount of WORK, Sales Skills, PROSPECTING, and QUALIFICATION PROCESS OF THE BUYER for that seven figure home…then compare the same skill set for what it takes to sell the $100K home.

THEN TELL ME if a 6% commission is worth it.

Son, when you can answer that with some common sense about the situation rather than give me the politically correct “It’s unfair” scenario…

Then we can talk.

Not before.

Roy MacLean
"Soapymac"


#7

Re: THE REALTORS 6% COMMISSION. IS IT FAIR??? - Posted by Redline

Posted by Redline on January 05, 1999 at 18:52:11:

It’s HARDLY the same amount of work (or possibly paperwork) to sell a $1,000,000 property than it is to sell a $100,000 property. If you can’t think of the differences, then think harder. I’ll give you one: The pool of buyers for property #1 is very small and discerning. They will require much pampering, coddling and catering to.

Now, that being said … a percentage basis for commissions is indeed fair. Would you rather the commission for both be $10,000? Who would that benefit?

I’m not sure I get your point.

RL


#8

Re: Tell you what, pal… - Posted by John Mc Lellan

Posted by John Mc Lellan on January 07, 1999 at 08:36:46:

Roy, you definitely are right on. Some of these people just do’nt realize not only the legwork we put in, but our expense also. You only get what you pay for and SERVICE is the commodity…MY SERVICES ARE WORTH AT LEAST 6%

John Mc Lellan
DeWolfe - Franklin,Massachusetts