Seller Commissions to Broker

8 Replies

Hello Experts!

I'm trying to list my property for sale on Trulia (No Broker). Does anyone know if this is free for me? Or do I need to be a real estate professional? From what I see online, it's free to list, but I always get stuck on the sign up / sign in screen. So it doesn't seem to work. Do I need to find 

Trulia doesn't allow fsbo listings @Kevin Dee . Hire a RE agent. They will make it worth the 5-6% you pay. 

I agree with @Rob Beland hiring a quality RE Agent will more than pay for itself.  

I appreciate the input! Thanks so much All.

As an agent it's ncie seeing investors telling you to go with a good guy.

My tip for you is to get recomendations from other investors in the area and interview at least 3.

Also Century 21 is the best company ;)

Yes, we are chatting with multiple brokers and the most important thing is that we are much more informed now. Even though they can chat away and sell their services and take over an hour to do it... I already learned a lot of info about pricing, the area, comps and the competition we are going against locally. 

That brings me to my next question. What is the most common commission rate and does it effect the way my seller's broker will work with other brokers? I'm seeing 4-6 percent is pretty common so far in Queens, NY.

There are brokers who charge anywhere from 3-6% in Queens.  I wouldn't pick someone solely on price.   Sometimes cheaper isn't better.   Look at the agents track record, how close they get to asking price, and how long the property is on the market.   A good agent is worth the money.   

It also depends on the price of the unit.   Often, a 1 million duplex requires no more marketing effort than a 250k coop.  I'd be willing to pay 6% for the coop but would demand paying less for the duplex.  

I would also recommend asking several agents how much they would list it for. It you are familiar with the market then an honest agent will give you a price within that range. Watch out for agents wanting to list it for 20% or 30% over market. If they mislead you simply to get the listing I would find a different agent.  As far as your market, they should be able to tell you what % of listing price they average listing is selling for. If you are in a strong appreciating market with lots of buyers it might be wise to list it aggressively but don't get carried away. Let the sold comps guide you...and have any potential agent prove these to you. Good luck.

A typical commission in my area is in the 5-6% range.  There are two companies that charge 4%, however they are incredibly bad. One is a national company.  These two companies do not put any effort into selling your property, as well as hugely miss price properties.  Getting the wrong price both lower and higher can have a huge negative effect on what you sell your property for.  

You are most likely to get the most price for your property if you are able to sell it in 9 days or less. The single digit days on the market is a huge psychological driving factor in my market.  So if you overprice, and it ends up sitting you are likely to get less for your property.

On the flip side if you under price too much, your list price may get bid up, but not likely to the actual market value.  I see this mistake happen quite often from one particular discount broker in my market.  Say the market value of the house is $500k...then list at $450k. Price gets bid up to $475k. The seller thinks that saved almost $4,000 by saving that extra 1% in commission, but actually ends up with about $24,000 less in their pocket when is all said and done.

So my advice is hire a knowledgeable full time agent who charges a fair price. He can have another job if it is in real estate, such as being an investor. The part timers I think can often make the same mistakes as the discount agents.

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