Agent fees for sale by owner ??

Question

Hello,

If I sell my home by owner what is standard agent fee percentage to pay for an agent to bring buyer? 2.5%? I see a lot of 2.46% on some websites ....

Marcus Auerbach · Answer

Selling agents make 3% in most markets, 2.4% in Milwaukee. I have been an investor much longer than an agent and I definitley get the temptation to sell FSBO. Especially in this market, wehere it is almost impossible to NOT sell. And of course there is the argument or work, working through contract to close issues and legal liabilities. You can manage all that, but here is the one thing that matters. A good agent (not just any) will make you more money that they cost. This starts with orchestrating a buyer frenzy on the opening weekend, playing your cards when accepting an offer, negotiating inspections, working through issues, dealing with the appraiser, to name a few!

Yes, you can sell it on your own, save 5k on commission, but it may cost you 30k on your bottom line.

David Avery · Answer

Between 2-3 %.  most listings are 6 % .  Then split between office ( 3 ). Then agent gets 60-100%.

depending on arrangement with their broker.

If a broker brings you a buyer that is 4 percent more than you wanted, give the broker 3% and your still ahead.

I always, always have an agent sell my houses/properties.

It will be on the open market and generally the open market will bring your property to top  price.

Hopefully a bidding war will start and you will end up with so much more than 6 %.

Is your property desirable?

Is the curb appeal perfect?

Are the colors non offensive?

A top notch agent will bring these answers and solutions to the table.

Maybe a slight staging will bring you $5000 more.

Then the headaches of the inspection,  if the buyers are qualified, if the buyers really have

a down payment, a job, etc!

But 2.5 = 3 % is the answer to your question.

good luck Chris

Jonathan Greene · Answer

Short answer: offer 2.5%.

Long answer: Some markets can support FSBO hot sales now, meaning you will make more than you would using the best agent in the area just because buyers are desperate. However, if your property is not a top tier, you likely will make less. I really don't understand why anyone lists FSBO. There is absolutely no question that your online views will be far less overall. I've seen people do it and win in this steaming hot market, but I don't know why any seller thinks they are the best negotiator and conduit with the other agents, the buyers, title company, attorneys, etc. It's silly and rarely ends up saving money.

Marcus Auerbach · Answer

Sorry, poor choice of an example, I just had that discussion with someone who was looking to save abou 1% buy going with a discount broker and that equated to 5k. Sounds like you are selling a 900k property, the principle is the same. You can save only half of the commission, because very few people would be comfortable to buy 900k without an agent representing them.

The other half you could save, but you probably won't. We know from data that FSBO sell on average for 6% less. Of course you could be the outliar in that dataset. But most likely you will either over or underprice the property, which will cost you money at the end. Especially in this market a well orchestrated bidding war can swing the price more than 2 or 3%. Buyers are smart too, the first thing they ask is for a discount because you don't have an agent. You will also get people who hope youd do a lease option or a land contract. Or investors looking for an off market deal.

I can go on, but I think you can see my point. We live in times where smart new ideas quickly take over a market (think Uber) - FSBO has been stable at about 4% of all sales for decades, because it is not a better concept.

My advice: find a top agent (90% are not very good) and focus on the bottom line instead of on the commission. They will make you more money than they cost.

Chris K. · Answer

@Marcus Auerbach

Great advice and insights thanks. Issue is the property would not save me 5k FSBO it’s more like saving me 54K on possible realtor fees... so this is serious money. Especially in this type of market I was considering taking a stab at FSBO...

Bradley Padula · Answer

Average sale price FSBO is statistically lower versus when listed by a GOOD realtor. Doesn't make sense to make less money fsbo while also doing all the work (listing, showing, negotiating) yourself. Most owners don't know the process, contracts, documents needed etc throughout the sale process

I'd find a good realtor, sit back and watch your property sell for top dollar without having to lift a finger

Good luck!

Agent fees for sale by owner ??

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