2.25% to 3.8% List side based on sale price
4.5% to 6.5% TOTAL with buyer agent commission
plus $395 fixed commission, waived at 6.5%
Commissions are negotiable, call to discuss
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COMMISSION FOR THE LISTING SIDE – The listing broker’s commission is typically higher than commission the seller pays to the buyer’s agent. This is due to the expenses the listing broker has for marketing your property which includes internet marketing, signage and brochures. Choosing a realtor who charges the lowest commission does NOT always net you more money. Another broker may offer commission savings, but the savings can easily be lost during poor negotiations with the buyer’s agent. Commissions are negotiable, but I strive to charge all clients the same rate. This is fair. But I also do not like to lose new business over a few dollars. In my 40+ years as a full-time Realtor, I have negotiated over 1700 sales. You want an experienced negotiator representing you. Minimum commission is $3500 total for properties under $50,000.
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List side + Buyer = Total
$50,000 to $200,000 3.8% 2.7% 6.5%
$200,001 to $400,000 3.3% 2.7% 6%
$400,001 to $600,000 3% 2.5% 5.5%
$600,001 to $800,000 2.75% 2.5% 5.25%
$800,001 to 1,000,000 2.5% 2.5% 5%
1,000,000+ 2.25% 2.25% 4.5%
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COMMISSION TO BUYER’S AGENT – You can decide how much commission to pay to the buyer’s agent. The rates shown above are what I recommend to best market your home. As of September 2024, the Residential Sale Contract has a new line added where the buyer can write in the amount of commission the seller is to pay their agent. If no commission, or an unacceptable commission is offered by the seller, the buyer will write in an amount. Offering the rates shown above typically will not cause the buyer to ask for additional commission in their offer. These rates will also draw the interest of most all buyers.
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Paying a reasonable buyer’s agent commission is part of marketing your home to the buyer pool. Cash needed to purchase a $175,000 home is about $13,500 (fha). Adding $4725 for their agent’s 2.7% commission would bring the total needed to $17,775. This difference would cause many buyers to consider a different home where the seller is offering to pay their buyer’s agent. For this reason, I typically decline taking a listing where the seller does not want to pay the buyer’s agent.
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CONSIDER THIS – Selling your home using a realtor nets you 16% higher than selling For Sale By Owner. Based on research conducted by the National Association of Realtors and published in the New York Times on Jan 5, 2005, using a realtor nets you 16% higher than selling By Owner. So, hiring a realtor for 5% to 6.5% is a pretty good investment. A Realtor with a large company utilizing their advertising dollars and resources, will get your home market exposure a hundred-fold more than what you could do on your own, thus resulting in a larger buyer pool and a quicker sale. An experienced Realtor also knows how to resolve legal issues that may arise during your sale. Realtors provide an important service to the community.
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Steve Studnicki / Call or text 314-616-5892 / Coldwell Banker Realty – Gundaker / {click here to email me}
