5% fee for one party listing Is to high?

Question

Question friends,  I have a realtor that found a buyer for my home but my question is he asking 5% for the deal and its a one party listing. Is that to high here in Milwaukee Wisconsin

Mike Dymski · Answer

5-6% is the norm in my market.  I'd actually prefer if it all went to my agent (who is my "partner" without the partnership)...splitting is fine too.

Jose M. · Answer

Thank you so much for your time and your answer.

Brandon Ingegneri · Answer

5% is fair all day long in just about any market.

Cara Lonsdale · Answer

I would like to ask a question that I don't believe has been addressed yet.....what is the price point that we are even talking about?

Neil Clasen · Answer

I have purchased property with reduced commissions when not using a buyers agent, but it was in my offer. I have also sold property without a listing agent and only paid a courtesy to the buyers' rep (equal to their customary commission split) when they have representation.

If however, your listing agent finds a buyer, you should pay them the agreed upon commission. As Max Gradowitz stated, they've done the work of both representing you and the buyer. Why shouldn't they be paid for both?

Max Gradowitz · Answer

5-6 percent is most common in my area.  It does not matter whether it's a dual agency or not.

In fact, I've been asked by a seller to do a reduced commission amount AFTER contractually agreeing to 6 percent, because the accepted offer was a dual agency where I'd be representing the buyer.  What?  You want me to reduce the amount you've agreed to already give me, just to be nice?   I politely said no, and that I would certainly never ever ask them to reduce their fee if they were my doctor or lawyer.

I think it's important to note something here that non-agents may not understand: if your agent is doing dual agency (representing both buyer and seller) they are doing twice the work they would otherwise do because they have to act as both buyer and seller agent.  Normally they would split it with a buyer's agent brokerage because the buyer's agent has to deal with the headaches of representing the buyer (scheduling inspections, removing contingencies, giving the lender and escrow company everything they need, constantly advising them how to proceed, etc), which warrants half the commission amount.  The seller's agent always has the seller's portion of the work to do (showings, presenting/interpreting offers, communicating with the owner/tenants to make sure inspections/appraisal goes smoothly, making sure the title company has everything to close, etc) which warrants that half of the commission.  If they do both, should they not be paid for both?

Grant Rothenburger · Answer

5-6% is the norm here in KY

Jeremy Trad · Answer

Wayne nailed it - and that's assuming you can find a buyer. In my opinion, 5% is well worth the time you should have saved with the single party listing.

5% fee for one party listing Is to high?

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