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With supply being very tight is it fair ask listing broker to work for 5%?.. I believe it will sell quickly
if you want a weak listing agent who isn't even strong enough to protect their commission, then sure, whey not? you could probably get someone who will take 4%
Completely wrong. Most brokers will take 5%. Just ask.
wrong? i just wrote that he could probably ask for and get someone to take even less. he'll just be getting a weak listing agent. sure, most will do it, because most aren't any good. if you want someone substandard then by all means!
if it will sell quickly, why not without a broker and save those 5%??
bb10024: It's probably more a function of the price than the broker. Above $2MM, many excellent brokers will do 5%. At lower price points, it's naturally tougher to get concessions.
Some brokers still draw a line at 6%. As far as I can tell, they aren't necessarily the best brokers - just the most concerned about diluting their brand.
Sorry but you are all wrong. I interviewed 6 brokers to sell one of our investment properties recently that was $600,000 and then I casually interviewed about 5 or 6 at open houses about possibly listing. Some were big shots and some were young newcomers -- ALL of them said they would gladly do 5%. My sample is about 12 for 12. Maybe that is too small but it sure tells me something.
Accepting a certain percentage has to do with the ATTITUDE of the broker,, taking into account parameters such as price and market (even though some major idiots think percentage paid is directly proportional to how "good" the listing broker is). bb10024, if you think it will sell quickly, why not do what switel suggests and do FSBO?
Sonya_D is exactly correct.
It's never a bad time to negotiate a lower commission.
If the inventory is so TIGHT, why not 3%? Less to compete with, more demand and a TIGHT supply, sounds like the brokers are getting a nice cushion given the market.
How about trying on your own with a professional photographer and streeteasy?
a flat fee of $3000 each transaction is more fair
Let me start off by saying that I am a Broker. I would advise 6% BECAUSE the market is tight. I know that sounds crazy but please let me explain.
Whenever I take a listing, the first thing I do is call every single Broker with a similar listing in the neighborhood. Then I call every Broker who has a listing under contract where I think they may have a seller that might be interested in my listing For example, if I have a Park Slope house for sale and see that a lot of Brooklyn Heights listing agents are doing a lot of buyer side deals in Park Slope, guess who I'm calling first. I do the same thing again with brokers who have listings that recently sold. These are the people who are most likely going to have motivated buyers. This usually takes me about 1-2 weeks for 3-4 hours a day before the first open house, but its the best way to make sure my listing is on the radar of the right people. Now hoe does this relate to commission? Well I'm glad you asked!
If my listing is 6%, those other agents are definitely going to bring their prospective buyers to my listing. If its 5%, they may, but the likelyhood isn't as high. In a tight market, if your agent gets all the of the right agents to see your home and they bring their buyer's by, it will make up for that 1% difference and then some! Unless you do this day in and day out, I can see how this might be tough to wrap your head around, but its the truth.
Doing 3% is utterly pointless. No Broker is going to bring their buyers to place if they only stand to make 1.5%.
You could go FSBO, but then you're just going to get tons of solicitation phone calls, and not as many strong buyers. FSBOs usually wait for their homes to get noticed. A good agents goes out there drags people to your place until one of them falls in love. You want to create a competitive atmosphere, and unless you're on the phone 4 hours a day, hunting down buyers, you'll probably net less than you would with an aggressive agent.
I hope that was helpful.
it's amazing how some people who claim to be "in the business" are so clueless about it (not to mention bad at their job).
Imagine how real estate would become liquid if there were no broker fees... It would only be 4% to buy and sell
>With supply being very tight is it fair ask listing broker to work for 5%?.. I believe it will sell quickly
Focus on your net proceeds. Get the best broker you can first, then talk price if necessary.
Interview broker: "My friends are telling me I should ask for 5% commission instead of the customary 6%, but I'd rather get the best broker who can get me 5% more for my apartment and pay you that extra percentage commission than sell for less and pay you a lower percentage which seems foolish. Based on the current market which we both know is strong because inventory is tight, how will you get me the best net value?"
Most brokers will take any listing at 5% as long as their brokerage allows them to do it (some have a $ 1 M threshold though) but it's important to know that buyer brokers as they are involved in most deals are pocketing half of the commission and they will always push more for a 6% listing because they'll get 3% instead of 2,5%, and this is especially true for cheap listings.
Bottom line, you can always get 5% but I thing that the extra 1% spent is definitely worth the extra attention.
Go get a weak agent that can't negotiate. Smart choice. Both guywiyhcat and Sonya say so.
Did you know that at pde, corcoran, Halsted, etc.that the default sort setting on listing searches is ftom highest commission to lowest? And that substandard (5 or lower) show up in red font?
Jim, which firm do you work for?
why did you post as greensdale and then stop?