What is the typical agent fees that a seller would pay. From what I understand the agent has to spilt the fee with their agency. So what is the lowest I can pay as a seller? I don't want to upset any realtor. I also need to squeeze out all the money I can get from this sale. I also live in Missouri if that has anything to do with it.
It depends on the agency. In many states, 6% is standard, while in others the commission is 5%. You can also work with a discount Realtor for a flat fee - there are several out there.
The rate is something that is discussed prior to you signing an agreement with your agent. Make sure you do . . . if you don't, odds are you'll end up with 6% in your contract.
The split that agents have with their agency is usually not a talking point, BTW.
I hope that helps.
Hijacking this topic, if you have buyer and seller agents, how much is then the fee for the seller. Split the agents this 5% fee 50/50 or comes a plus of 5% for buyers agent?
Typically speaking when I was actively selling property in Tucson the average rate was 6%. Some big companies (atleast big locally) charge up to 7%. Those companies always had the best advertising and such, and the sellers were normally willing to pay that extra percent. Generally the Buyers agent recieved 3% of total purchase price. With the economy the way it is its not uncommon to see 4% given to buyers agent as buyers agents are more likely to show and push the sale of a house since they will profit greater from this deal. (maybe unethical but true) 5% was out there just not as common. Also alot of companies offered to list the property on the MLS for a flat fee (anywhere from $299 to $1000) but they just simply list the property on the MLS and thats it, your on your own as far as advertising and such.
As far as the broker comission is generall 1/2 of the comission that the agent recieved, thus the agent and broker would each recieve 1.5%
My specific office in Tucson, Az was set up a little different, instead of splitting my portion of the comission with the company I paid a "desk fee" of $50 per month and paid $450 to the broker per deal and keep the rest, simple break down
$200,000 purchase price
$12,000 in comission paid ny sellers.
$6,000 to sellers agent
$6,000 to buyers agent
where as some agents would pay there Broker $3,000 I simply paid my $450 deal fee and pocketed the other $2550 some other brokers would of taken. Yet my brokers wernt of much support when you needed them.
Generally for a full service realtor I do not see you paying less than 5%, which would most likely break down to 3% to buyers agent and 2% for the sellers agent.
Im sure you could find 5% but sometimes it better to pay that extra percent and get the property sold faster and/or at a higher price.
Scott, thats only a scenario for me as buyer. But thanks for the big answer.
Say, the seller gives 6% to his broker/agent and I give an offer without an "buyer" agent, the sellers agent becomes the complete 6% or only 3% then??
In Germany the buyer and the seller gives his agent independent 2-3%.
Generally, the total commission for the sale is negotiated between the seller and his/her agent when the listing contract is signed. If you buy directly from the seller's agent, they get to "double dip" on the commission.
Good for sellers agent/broker, can I negotiate with the agent/broker to reject 1-2% or gives here no scope for me as buyer?