OT-real estate commission

What the going commission rate for selling a house these days? Old house, less that 100 thousand. Thanks.

Generally 6% around here- listing agency gets 3, selling agency gets 3.

In southern Indiana the "going rate" is "around" 7%

BUTTTTTTTT this is CERTAINALY a Negotiable price (NOT any legal requirement), its what the trafic will bear and whatever price you can negotiate.

REMEMBER youre the customer and you can offer what commission youre willing to pay, then let the agent decide if they want to take it or walk.

As the sales prices, it makes sense the commission percentage "can" drop so figure that into your offer.

As a pure economic business policy decision some agency owners have a set price or a minumum and an agent who works for them has no authority to take any reduction and in that case you can take or leave it.

I have worked as a realtor and real estate attorney both and can tell you its your real estate and your call subject to a companys policy also.

Be aware, many listing contracts are exclusive right to sell so if you enter into such even if you sell it to your brother in law during the contracts term you still owe the commission !!!! time later

John T Country Lawyer and ex Realtor

It is 6% as a general rule here in Arkansas. You can negotiate your commisssion if you like, but bear in mind the real estate firm has to profit from the deal if you want it advertised and marketed in a fashionable manner. If it should happen to be sold by another real estate firm the two firms will split the commission. Where we are there is a firm that got to cutting their commissions drastically to get the listing, but did not have the buying customers. Therefore when the remainder of the firms discovered what they were doing, no one wanted to co-broke their listings. She did not sell very many of those cut throat deals and is now back up to 6% like the rest of us. Just my opinion.

Around here it's 6% split evenly 3% to buyer's agent and 3% to sellers agent. Last time I sold a house I wished in hindsight that I had made it a graduated commision, something like 4 or 5% plus 10% of every dollar over some threshhold and 20% of some higher threshhold. That would make the realtor really want to work to get the best price.

Generally under $100,000 is 7% for a multiple listing that goes out to all other realtors and 6% for an exclusive listing. It is negotiable though. Interview a few realtors instead of just going with the first one and MAKE SURE to get what you negotiated in writing. Realtors in general have a reputation similar to lawyers. There's some real good ones but a lot of bad ones.

I had bad experiences with 2 realtors who were supposed to be really good. The first one said she would multiple list my properties for 6%. The total price for both properties was a little over $100,000. When I got a copy of the real estate weekly that's in the newspaper, my properties weren't listed. I asked the realtor and she said that's only for multiple listings. I said I went with her because she was going to multiple list for 1% less than another realtor I liked. Then she tells me the agency she works for has a policy of not multiple listing for less than 7% and she was trying to save me money. What a LIAR! She told me 6% so I would go with her. I should have recorded the first meeeting. The realtor I went with the next time wasn't much better. She said she'd take back up offers because it was a prime location. When there was a big problem with the first potential buyer and I could have backed out, I asked about back up offers and she said she didn't think she needed any. There was at least 6 other people/realtors very interested in the property. I eneded up selling to the first offer but made the realtor take $1500 off her commission. If there would have been back up offers I could have made more money. The buyers were late with the down payment so I had every right to cancel the deal and I would have if there had been back up offers. Number 1 rule, don't trust realtors! Also, NEVER EVER let the your realtor act on behalf of the buyer, NEVER! They won't have YOUR best interests in mind. They'll want to get a sale and try to convince you to sell at a lower price while telling the buyer not to offer more because you're motivated. Also best to not use the same lawyer. I had 1 lot sell with the same lawyer but it was a real straight forward deal and the buyer and myself just needed the official paper work done to complete the deal.

Thanks so much. Once again Ytmag as come through with the answers.
Like John T says, I have seen it many times with farm land where it sells to the neighbor and friend after it is listed and a commission owed. Seems the friend doesn't get serious until they think it might get away from them.

Around here I think that if they are a member of the multiple listing service they are required to list it after a short time of exclusive listing - like two weeks? . They don't like this if it is a hot property and they really try to sell it before they have to multiple list it.

Need to watch out for low baller Realtors too. We had a sale appraisal. A Realtor came out and told us about $90000, we didn't do any thing, then the next year we had somebody come out and now it was $70000. After we looked into the paper work we found out the second was the broker for the first.
You wonder how many Realtors buy up houses that they under appraised or take a $500-1000 hit for a quick sale.

I sold a farm last year for 550000.It cost me 3%.
There negociable,it's whatever they can get
away with.

Mostly 6% around SE, SD split 50-50 if another agent sells it. You can negotiate the price but would you work harder for a 7% commission or a 5% one? I've even went with a bonus % if sold within so many days trying to entice the realtors to show my property over another but I can't say it did any good either. My realtor that I have used for 30 years will list it for 6% but if he sells it will only charge 5%.

"You wonder how many Realtors buy up houses that they under appraised or take a $500-1000 hit for a quick sale"

I saw a house sell a few years ago near where I lived at the time. Real estate agent said she had a couple who *might* give $70K for it but that would be the a long shot. After the house was sold to them it turned out the buyer was the agent's daughter and son-in-law, house was worth closer to $100k.

don't use one, period.bought my house that way.no problems.

Just don't let them suck you in by offering a lower commission and then upping it to get a sale. The realtor I had already had a buyer lined up looking for an acreage so she played me to make more money. DON'T TRUST REALTORS!

If the buyers are going to finance the house then a seller can just about plan on 11% of gross for all the fees. That was real close for a good ball park number.


T_Bone

You can negotiate lower commissions on big dollar sales. But trying to low-ball the realtor on a sale under 100K can be counter-productive- they'll take the listing, but won't promote it as much as their other listings.

I'm a licensed broker and appraiser. The commission in my neck of the woods is typically 5 or 6%.