Average real estate agent commission % in Northern NJ?

Question

We relocated to NJ last year and do not own a home, thus are unfamiliar with agent commissions here. What is the average buyer’s agent percentage in affluent Bergen county? I know "it’s all negotiable” but no need to beat around the bush.

We’ve run across a few FSBOs using a flat fee MLS listing (we assume) and see in the property description: "2.5% to buyer’s agent” or "buyer’s agent 2% commission offered". Is this on par? In a run-of-the-mill sale with both sellers and buyer agents, is 5% total commission the norm, then split 2.5% each? Lower?

Further, while visiting an open house, we overhead that commissions on very expensive homes (1M+) are lower. Insight on this? What percentage lower?

Thanks in advance!

Ryan Goldfarb · Answer

Hey @Jenny L. -- can't speak to Bergen County, but I see 5% most commonly in Hudson County (Hoboken/JC). In theory, it's all negotiable, but I know a lot of agents won't stray from their customary fee.

Perhaps for something in the $3-5MM range, they'd reconsider, but even $1MM is common enough around here that I don't think a quality agent will bend over backwards on the fee to win the listing.

Not sure which angle you're coming at this from, but I know of agents who will run the transaction on a FSBO for a fee (paid by the buyer) of 1% if the seller is not negotiable on offering commission. This is more applicable to the retail side, though

Jorge Zea · Answer

Open houses by Listing Agents are designed to get new leads as @Kevin Hill describes.

Jenny L. · Answer

Ryan Goldfarb, I can't blame them but then I do expect cookies and bottled water, at minimum.

Kevin Hill · Answer

The agent negotiates the commission. Some agents will go lower. Could depend on on much is expected of the agent. Sometimes you get what you pay for.

Not sure who the "Boss" is at the open houses. Sometimes for safety reasons or if a particular open house is expected to be busy, often 2 agents will work the open house. Some agents work for a team, where usually there is a top producer who brings in the listings and there are buyer agents who work the open houses and work will the buyer leads that come in.

Some agents never sit their own open houses.

Shefali R. · Answer

I have seen 5% to 6% with equal split bew buyer and seller agents. I am not an agent so this is based on what I have seen on deals I have invested in, in northern NJ.

Kevin Hill · Answer

Typically, commissions average 5% with the buyer and seller's side splitting it evenly. On new constructions and higher end homes, it's often 4%.

If you are going FSBO, I would offer at least 2.5% to the buyer's agent. Of course, commissions are always negotiable.

Account Closed · Answer

Many Realtors make their living off commission only.  They will tend to go where they can make a living.

Jenny L. · Answer

Thanks, Shefali R.! Kevin, we recall seeing a 1M FSBO (appeared a builder flipped it) flat-fee listed and they offered 2% to buyers' agents. That seems in line then since it was a high-end property? They'd expect the same buyer pool as if they listed with an agent?

Kevin Hill · Answer

@Jenny L. Sometimes we do have newer agents sit the open houses with us to teach them how to run them.

Sadly, the true motivation to have an open house, is not really to sell that actual house, but to get buyer leads from unrepresented buyers. I think the stat is only 3% of home sales are a direct result of an open house.

Welcome, happy to help!

Jenny L. · Answer

@Kevin Hill, that's interesting that it's entirely up to the agent. I guess it's a gamble for sellers to push for a lower % unless they've previously worked with that agent and know at what level they perform.

Wasn't for sure it was a "boss" but usually that person seemed more senior in tone and behavior but knew less about the house. Hadn't thought about safety reasons -- that is a valid point.

Where we last came from, very rarely did the listing agent sit their own house which seemed odd (especially when they could not answer questions about the house) but perhaps is more common than I thought. Thanks again for the education!

Average real estate agent commission % in Northern NJ?

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