Do we have any realtors.

[BP in ME]

To the OP, like others are saying, 6-7% is pretty standard most everywhere. If that 1% really bothers you, then raise the price a little or stand firm at 1% higher than you would otherwise.

We sold our first house (FSBO) with an ad in the newspaper...first day. The bank handled all the paperwork, and everything went fine, without paying any commissions.

I love these posts. It's fine if you know what you're doing but I always wonder how people know it was priced right esp. since it sold quickly (that's a strong sign that it was underpriced). So you saved the 7% commission. What if it was priced 10% below market? Net loss would be 3% in that case. And listing in a hot market can result in a bidding war that gets you 5-10% more than you expected.

[BP in ME]

7% is standard this is the normal breakdown.

3.0 to the listing agent
1.0 to the company they work for
2.0 to the selling agent
1.0 to the selling agents company.

Yeah, as others have pointed-out, that's not the way it works in all areas and all agencies. Lots of different breakdowns used but the listing agency often gets a slightly larger slice than the seller.

[NitroZ7]

Most of the commissions I see in south Florida are around 5%. It depends on the market and the competition among realtors. Our housing prices are high so they may be happy with 5%. Most important thing is make sure you have a good realtor who will market the house, give you a good realistic selling price and an honest and realistic expectation of the selling range. I would talk to others in your community to see if they have recommendations also.

[Lanierspook]

We paid 5 percent, the value of homes today brought the percentage down. She got 26K, not split with anyone but her broker. Sounds absurd but she earned every penny, had the house staged and pro photos. Worth it for our piece of mind. We are older and avoided the hassle. Yes I know real estate well, could have done it myself, worth it to me, your choice.

[The Bass Junkie]

We paid 5 percent, the value of homes today brought the percentage down. She got 26K, not split with anyone but her broker. Sounds absurd but she earned every penny, had the house staged and pro photos. Worth it for our piece of mind. We are older and avoided the hassle. Yes I know real estate well, could have done it myself, worth it to me, your choice.

Sales People in a lot of industries make "absurd" money, but then again a lot of people don't see the time, knowledge and effort on the backend. You still take a haircut on taxes and expenses bringing it way down. Self employment tax is a bit of a biotch lol

[Fishysam]

6 is normal here. 5 can be done.

[Rkammer]

Takes a 6 hour class to become a realtor. These guys think they should make what someone with a 6 year advanced degree should make. Sell it yourself.

In Florida it takes a 63 hour pre-licensing course and a state exam that isn't easy. Then, every two years 14 hours of continuing education including 3 hours of law. But, whether it's with or without an advanced degree, it takes a whole lot of knowledge of real estate in general as well as sales moxie to be successful as a Realtor. And, the Realtor designation isn't a gimme. In order to become a Realtor(TM) member of a local Board of Realtors, one must attend an orientation and complete two courses to learn about the Code of Ethics and the requirements of the MLS.

Selling without a Realtor is certainly an option but, those attempting it should have knowledge of the process from beginning to end, an attorney or title company to help with the details, and the confidence to deal face to face with all types of buyers in a sensitive negotiating situation. Some people can manage it, while many can't or choose not to. That's why, in most areas about 85% of home sales involve one or more Realtors while only about 15% are between buyers and sellers directly. These figures have held up fairly consistently over my years in the real estate business.

[donkeyfish]

6-7% sounds about right. I was lucky enough to buy my property directly from the owner. I had been renting from him for 6+ years. He knew what price he wanted so he could retire next year, and didn't want to deal with any realtors. I paid $750 for a real estate lawyer to draw up the paperwork, and the seller and I saved over $15k in commission fees. The realtors we talked to wanted 3-4% to handle both sides of the sale. That being said, I'm not sure if I would sell a place without one in the future. They can negotiate a lot of things and take care of just about everything so you don't have to. Like others mentioned, if you live in a desirable area, you can get a bidding war going and the price goes up on its own. If you want to sell it on your own, it's very doable. I think it all comes down to how much your time is worth. If you think you could sell it in a month or less, might be worth trying on your own. If not, it's probably better to have someone handle it for you. Just my $0.02 from someone who bought property without a realtor.

[rolopayne]

2 years ago I sold my home and bought another one. Deal we worked out was 6% but if I sold and bought using her is was 4%. She did us well, seems that is common down here but it is usually 7 to 5

[Gamblinman]

6% - 3% to listing realtor, 3% to selling realtor. If the listing realtor is also the selling realtor, they get 6%.

[BMCD]

With the costs of homes these days 1% is a chunk of change. And if your buying and selling with the same agent they get 2 commission's. Sell and Buy. So you should be able to negotiate the commission. I have learned there is no reason for a realtor anymore.

[jcdogfish]

Agree, it depends on where you are. In our neighborhood some houses sell before the signs go up, some sell by owner the first day the sign hits the yard. The person that sold us our house made $9k, plus the listing co made their share too. If you include travel time we used about 6 hours of her time. I know as in any sales job there is a lot of dead time someone has to pay for. My neighbor that just moved is a realtor, was home most of the day with a couple of outings some days. Based on the number of houses she sold, she made more than my fishing buddy who is a Dentist and works 50-60 hours a week. 30k to sell my house, when it could probably sell in a week with a $5 sign from ace hardware is highway robbery. With that said, being a realtor could be a nice retirement gig. If I did that I would probably think I was underpaid

[BP in ME]

Agree, it depends on where you are. In our neighborhood some houses sell before the signs go up, some sell by owner the first day the sign hits the yard. The person that sold us our house made $9k, plus the listing co made their share too. If you include travel time we used about 6 hours of her time. I know as in any sales job there is a lot of dead time someone has to pay for. My neighbor that just moved is a realtor, was home most of the day with a couple of outings some days. Based on the number of houses she sold, she made more than my fishing buddy who is a Dentist and works 50-60 hours a week. 30k to sell my house, when it could probably sell in a week with a $5 sign from ace hardware is highway robbery. With that said, being a realtor could be a nice retirement gig. If I did that I would probably think I was underpaid

Do you think the same way about farmers? If they make $200,000 in one month during harvest does that mean they're overpaid?

[Duece22]

I offer a pretty cool listing program that alot of people like. It's called the 5-3-1 program. 5% if another realtor brings the buyer, 3% if I bring the buyer and 1% if the owner brings the buyer. They like because it makes them feel like they have a chance to get the buyer themselves but when it's under contract in 24-48 hrs by me or another agent they realize what we then offer.

I also do a 30 day listing agreement for FSBOs that have sat stagnant. I stipulate in the contract that if an offer is received whether accepted or not it increase my contract another 60 days.

[Grizzly]

I have sold two houses myself. It can be done and it does take some work on your part.

If you are going to sell the house yourself make sure the people that want to look at the house have been pre-qualified for a mortgage or have proof that they have the cash necessary to pay for the house. They should have a document from the bank showing how much they have been qualified for. If they do not have this they are just wasting your time.

You should also have a real estate attorney ready to go with the papers needed for the transaction. Make sure they are a real estate attorney.

[bassnpro1]

Do you think the same way about farmers? If they make $200,000 in one month during harvest does that mean they're overpaid?

Many of them, without question are overpaid. Some of my family are grain farmers, I'm very jealous of them, but it is a profession you have to be born into basically.

[jcdogfish]

Do you think the same way about farmers? If they make $200,000 in one month during harvest does that mean they're overpaid?

If someone else owned the land, equipment was free, fuel for 12 months was free, no risk or investment in the crop or its value, crop insurance free, labor to plant, fertilize and cultivate was free, and basically everything to grow the crop was free then yes, if a farmer showed up and just harvested the crop I would consider him overpaid. I always said the best businesses are probably real estate and insurance. The overhead is a lot lower than most businesses and you are basically selling paper as you don't have to buy or stock or have risk of loss on what you market or sell. Your risk is limited to your overhead. If you are good at it and work at it its a great career. Not many other jobs out there that you can set your schedule and work at your own pace. As a business owner for almost 30 years I envy the low overhead business model. However, I may sell a house without a realtor as I have a good attorney, but I would never buy a house without using a realtor. My point in my original post was not a bash or the realtor. 6% may be a low figure in some cases of a hard sell, or 6% over what I would sell for may be a bargain. But 6% of a selling price that is in a market where it will sell quickly is overkill in my opinion, hence the posts of negotiation of the commission.

Also,,the correct comparison would be selling the crop, not harvesting the crop.

[tdcoleman]

Easy to list yourself for $200 or so, then pay seller's agent 3% I have done it 3 times and it works well. i used this site last time, under due diligence now for an investment property.

https://isaverealty.net/

[Stoner]

3% to listing broker and 3% to selling broker. Sometimes agents get both sides of the deal.
Go the Zillow rout, you’re welcome.

[Quillback]

6% is the norm these days.

I agree, 7 is just a tad over.