% Commission For Seller's Agent?

[trust_id_09]

What is the name of your state (only U.S. law)? NEW YORK

I had a preliminary visit w/ a real estate agent for a property I may be selling in the future. Upon visiting the property with him, the agent give me an estimated value for the property and told me should I decide to hire him his commission will be 5%?

Is it a mandated percentage fee by New yourk State statute or is this guy trying to pull a fast one on me? He's claiming the reason for the 5% is that he'll be faithfull to me as the seller as his fiduciary duties dictate.
Or is it a load of boulderdash he's trying to feed me...?

Thanks In advance!

 

[mixtim]

A seller's agent has a duty to you regardless of the percentage, so he's full of it. You will likely have to sign paperwork that explains what their role and duty is. 2.5 or 3% is more the norm. Interview other agents and find one you like and that is responsible.

 

[nextwife]

A seller's agent has a duty to you regardless of the percentage, so he's full of it. You will likely have to sign paperwork that explains what their role and duty is. 2.5 or 3% is more the norm. Interview other agents and find one you like and that is responsible.

2.4% to 3% is the norm for the portion that goes to the co-broke. The listing agent usually gets more than the cobroke because they incur the MLS, signage and ad fees, etc..

 

[Cedrus]

If you hire a top agent, really good at selling (not listing) homes and he/she has a good reputation, you might be getting a good deal for the 5%.

Some agents are looking for $$ in these depressed times and would take 3%. Problem is, the buyer's agent may not be happy with 1.5% split and will do little or nothing to follow thru. And the 1.5% will probably be divided with the agent's broker/office manager.

 

[nextwife]

If you hire a top agent, really good at selling (not listing) homes and he/she has a good reputation, you might be getting a good deal for the 5%.

Some agents are looking for $$ in these depressed times and would take 3%. Problem is, the buyer's agent may not be happy with 1.5% split and will do little or nothing to follow thru. And the 1.5% will probably be divided with the agent's broker/office manager.

I use costs as the factor is choosing ALL my professional services. Wouldn't a half price doctor be a better deal, because they charge less? OR a hair stylist who only charges ten dollars be better than a salon with a great reputation? Or a bargain auto mechanic automatically a better deal than an ace mechanic who charges more?

 

[ecmst12]

It's perfectly valid to use cost as ONE factor in choosing a vendor for goods or services. Personally I find it more concerning that this guy would cite a lie as the basis for him charging 5%, rather then simply claiming to be worth the investment. Honesty is another important factor to consider.

 

[Cedrus]

nextwife:

I think your argument defines you a being "penny wise and pound foolish"

In any real estate transaction, a seller would want a quick and hassle-free deal. His 5% agent (not the one mentioned here) will have the reputation, connections, legal knowledge and ready-to-buy list of clients to accomplish this. If not, it won't be long until he drops down to the tier of "ordinary" agents.

The 5% commission means a larger split with any other agent who wants to jump in and find a buyer. A 3% agent, maybe not so much.

BTW, if I was having my car's brakes done I would pick the shop with the best recommendations and reputation over the "bargain auto mechanic".

 

[ecmst12]

I'm pretty sure nextwife was being sarcastic.

 

[nextwife]

I'm pretty sure nextwife was being sarcastic.

Ya think?

Thanks, yes, of COURSE I was being sarcastic.

I choose brokers to dispose of my employer's property all the time and it makes a HUGE difference when I use brokers who really know their market, know construction, know local contractors and repair prices, understand underwriting and how it affects transactions, and know how to write up a data sheet to highlight a homes best points. A bargain broker is frequently no bargain at all. Matter of fact, they often COST us money.

 

[mixtim]

It must come down to your area then because in mine no one pays anywhere near 5 percent for the listing agent alone no matter how connected they are. 3 percent is standard and agents are happy to get that. Ask around and get a feel for what's normal in your area.

In any event, as with any big purchase interview several agents and pick the one you feel will do the best job.

 

[Cedrus]

nextwife:

Duly noted.

 

[trust_id_09]

Agent's % commission

Thanks you all for your input. It is much appreciated.

 

[justalayman]

I had a preliminary visit w/ a real estate agent for a property I may be selling in the future. Upon visiting the property with him, the agent give me an estimated value for the property and told me should I decide to hire him his commission will be 5%?

first, you need to ask if that is the entire commission, if he is listing it as an exclusive agency or what. It seems that those here understand the 5% to be the listing agents commission but the fact is, in most RE deals, you agree to a total commission and how or if it is split with any other agency is between them and has very little to do with the home owner. (in reality, it is none of your business)

In my area, a typical listing that is listed with MLS, the total commission is 7%. That is typically split 50/50 with the selling agency so each agency (not necessarily each agent) would receive 3.5%. If this guy is listing this as an exclusive agency, 5% would be a deal for you because this is lower than typical (in my area) but if it is an exclusive listing, this particular agency will benefit because they are guaranteed the entire 5% but sometimes an exclusive agency contract will limit your buyer pool so there are down sides to it as well.

the contract you sign is the ONLY commission you are required to pay. If you accept a deal where a buyers agent somehow weasels more from you, you should slap your agent. A buyers agent is paid for by the buyer, unless it is some special deal.

He's claiming the reason for the 5% is that he'll be faithfull to me as the seller as his fiduciary duties dictate.

let me make one suggestion. He is bound by a fiduciary duty regardless how much you pay him but if this percentage is higher than typical in your area, he may have been implying that since your property would garner him more money, he would work to sell your property faster.

the other thing that nobody mentioned is:

is this commercial, industrial, single family residential, or muti-family residential.

each of those types or RE often garner different commission rates.