7% Realtor Commission?

Question

Does anyone have experience and/or success with increasing the selling agent's commission to 4% and keeping the 'standard' listing commission at 3%?  Assume the house is priced in line with recent, similar comps.  Thanks for any input.

Mark Yuschak · Answer

I've never seen it work well, either.  And I'm a Real Estate Broker.  Of course I'd always like to get more commission, but it rarely works, if ever.  Price is the biggest determining factor in getting it sold.

Think about all the HUD houses - they all have 5% commission to the buyer's agent.  Plus, in MI, if it's an owner occupied buyer there's a $500 bonus.  Yet, they still sit on the market forever.

Mark Brian · Answer

Make the commission the same on your property as all the recently sold comps. Instead of paying more commission, just price the property lower.

Ted Harris · Answer

Completely agree with this ... as long as your BAC (buyer's agent commission) is enough to get agents showing your house you're ok.  Price seems to be the biggest determining factor for buyers in today's market .... in addition, appraisals are a genuine concern so a well-priced home for a buyer who feels like they are getting good value goes a looooong way in today's market!

Michael P. · Answer

Nope...

I have even added a 17k commission(400k house) once and it didn't do any good.

The thing you need to realize is the buyer is the one buying the house.  At the end of the day it is their decision not the agent's.  So even with the agent saying OMG this house is awesome you should buy it so they get the Bonus it doesn't matter.

I have also done smaller bonuses on lower end houses and I have yet to this day seen any good that can come from it.  I believe you are just giving money away.

You are better off just lowering your price.

Goodluck

Account Closed · Answer

I've never had much luck by offering bonuses.
          
          The only benefit that you'd get might be that the agents would take the buyers to look at your place.  If there are 500 properties that meet the buyer's criteria, the agent is only going to show them 5-10 properties. it would be nice if yours is one of them.
          
          I'm not sure the agents would even notice that the commission is different when they look at the listing. Maybe better to offer a catchy gift for bringing the buyer: trip to the Carribean, or a new car or something equally desirable.

Jeffrey K. · Answer

Some buyers sign agency agreements.  On these papers there is often an option that you have to check to allow agents to get or show you houses with this type of bonus.  I would never check that box as a buyer because it feels like the agent is not working for you anymore.  You might be shooting yourself in the foot.

Account Closed · Answer

Agree with everybody above.  It doesn't work.  Not in the case of selling a home.  On the other hand I've seen commission of 20% paid on extremely rare and hard to sell property, but usually Selling Agent is going to get both sides as its a certain kind of agent, certain kind of buyer and not something that you will find on the mls.

Eddie Ziv · Answer

Back in 2007, when I considered selling my house, I offered my agent an additional 1% for every $100K above the minimum I would agree to let the house go. (My asking price was $950,000 and I was willing to let it go for $900K) so that would have translated to additional $15,000 in commission to the listing agent alone. The one and only offer I received was $850,000. Needless to say, I didn't take it and decided to keep the house. Which I'm happy I did.
So the bottom line is no, It doesn't work. In the end of the day, it's the market, not the effort of the agent.

Jose R. · Answer

Bill, I had it go both ways for me.  Best thing to do is test it out in your market and see what happens.

Hope that helps.

7% Realtor Commission?

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