So where I am from atandard commission rate is 4%. I use this to get 5% and let the client chooose to pay me more.
Explan to them the benefits of having a higher commission.
1)Buyers agents will show there property first and be excited to sell it. They will work there clients that much harder to buy it. I call it the human nature objection. Second you will have more advertising dollars to do an extensive marketing campaign. They usually choose to pay more especially in a buyers market.
|Link Removed|

In this real estate market, commissions have gone up. Clients do realize the importance of working with a top real estate broker. Not only one who provides outstanding marketing and one who is going to get the proprerty/MLS listing sold for them. But what's more: a real estate broker that is going to guide them to a successful closing.

In my humble opinion, this is a vastly understated role that a good realtor plays. It is one thing to get an offer and get it signed. It is another thing to navigate the waters of this market and get the file to the closing table.

In Minnesota, standard commission is 6-7%. With 2.5% to 3% going to the buy side broker per the MLS compensation that is listed. I hope this helps.

A seller has to think about the money they lose every month a home does not sell.

There are no standard commission rates for Realtors. Be careful what you post here

Thanks,

Mario

As prices fall, even a higher rate still produces less income.

But when our Sellers have little or no equity, we can't get blood out of a stone.

So you just have to have more transactions to make the same amount of money; or give yourself a pay cut.

But I work harder and more carefully on the few transactions I have; I don't fumble any balls on the way to the goal line; and I appreciate those that I get to the Closing even more.

I have a higher rate of deals that actually close now than in the heyday of the market when more were allowed to bomb out and you'd think "I'll just find another Buyer." Can't do that anymore!

Today's deals are too precious to treat with anything other than "Intensive Care" and the Commissions represent money well earned. Every morning I examine each of my Listings and my Pending Files like newborn infants in incubators, and ask "What can I do for you today that's going to help keep you alive?" and there's plenty that can be done, little things that nurture them along, the things that no one else will think of or do.

Bringing them in from across today's minefield can be very rewarding.

At my company we don't really need to focus on the commission rate other than what is standard. It really helps that I am with a 100% commission company so I know if I list a property at 5%, pay out 2.5% I can keep the other 2.5%. If I represent a buyer and the pay out is 3%, I make the whole 3%. It takes a LOT of work now a days to close a successful transaction. Sellers want to sell in this market and try to hopefully make something or at least break even. Buyers want to see every house on the market and gas costs are pretty high! How strong is the buyer and their financing? Will the home pass FHA? So many variables to put together! Bottom line - every dollar counts and I LOVE being in control of my funds with a 100% commission company!

Maybe instead of saying "standard", the word "typical" might fit better because what is "typical" in your area may not be the typical commission in my area.

Commission is always negotiable. Here, it varies from a set amount on a low-priced property to 10%, depending on who you are, what you're selling, and what you can negotiate with the seller. Also, here, some listing agents are keeping the lion's share of the total commission and only offering 1-1/2 to 2% to the buyer's agent.

My broker has a set commission that is the standard for our OFFICE. It is not "standard" for my area - even though it is typical for others to have the same rate as the lowest they will go.

I'm amazed at the rates you get in the US. In here, we typically get 3-5%.

The beauty of a free market. I personally am amazed that agents and brokerages can survive on 3% commissions. Unless you never split them with other agents/brokers.

On a sale that charges 6% commission, if another agent sells the house (or I sell another agent's listing) I end up walking away with approximately 1.7% of the sales price after splitting with the other agent, the broker, and the franchise BUT before taxes and expenses. Taxes will eat up at LEAST another 25% of that, and so will my basic business expenses.

Somewhere in here I have to actually make a profit that enables me to enjoy some sort of pleasant lifestyle. I'm not in this business to be a public servant and live hand-to-mouth.

Maybe it's time to break out on your own.

"In my humble opinion, this is a vastly understated role that a good realtor plays. It is one thing to get an offer and get it signed. It is another thing to navigate the waters of this market and get the file to the closing table."


buyers and sellers don't realize the near miracle brokers and agents have to perform in order to get properties sold. the transactions can take months. real estate sales is one of the few industries where an agent can spend a tremendous amount of time and marketing money, only to find that the deal falls through after months of work.

Not at this time. I'm content with my broker and what he provides for me in return for my commission split. I do however grit my teeth at the franchise but I have no choice in that matter - my brokerage is the only one I'd work for, and I'm not interested right now in getting my own broker's license and setting up my own shop and all the headaches and expenses that go with that. PA does not allow for virtual offices. Whatever i'd be "saving" by keep all my commission would be going back into office expenses anyway. LOL

hey perky those last 2 sentences are absolutely priceless..

probably some of the best advice a newbie can get...the gross vs net.

i know many agents and brokers..who made a ton of money..only to realize they are broke..

that explains why re agents tend to be behind in paying their taxes on time and are one of the most frequently audited occupations with the IRS.