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  • January 1, 2009 at 2:34 PM #14731
    cabal
    Participant

    We are going to sell our house in 2009. Our difficulty is in determining a reasonable commission to offer the realtor. The house should sell for around 1.5M, or down 500K from the peak. Paying 6% or 90K seems excessive even in todays market. The last time we sold, I believe we paid 4% with almost no negotiation. That house sold in 1 day even before the sign was planted in the yard. The realtor probably invested a total of 20 hours of his time on our behalf between visits, showing, phone calls, escrow, etc. In the end we felt he made out like a bandit even at 4%. Is it unreasonable to offer a fixed amount? I would also like to bias the majority of the commission to the selling realtor.

    Why are we selling in such a depressed market? We are becoming empty nesters and the house is simply too big. The original plan was to sell by 2010-2011 and downsize, but given current conditions why wait. If we sell low, we buy low as well. Any advice would be appreciated.

    January 1, 2009 at 3:07 PM #322354
    sdrealtor
    Participant

    You will need to offer at least 2.5% to the buyers agent if you expect to get the property shown regularly. Expect to pay 1% to a listing agent for minimal to no services beyond the 3 P’s (put it in the MLS, put a sign in the ground and pray). For 1.5 to 2% you should get a decent level of service. For the major brokerages expect to pay 2.5%.

    I would stay away from the flat fee guys. This is a really tough market as you know. Decent agents took 4% last time because it was easy and they knew they would get paid quikly. This time around it will be harder, you will need a better agent and I’d focus more on getting the right help than the cheapest help. 1% is $15,000. Your house is probably losing that much value every 1 to 2 weeks. The right agent who gets your house sold quickly at a fair market price is worth paying for.

    January 1, 2009 at 3:07 PM #322700
    sdrealtor
    Participant

    You will need to offer at least 2.5% to the buyers agent if you expect to get the property shown regularly. Expect to pay 1% to a listing agent for minimal to no services beyond the 3 P’s (put it in the MLS, put a sign in the ground and pray). For 1.5 to 2% you should get a decent level of service. For the major brokerages expect to pay 2.5%.

    I would stay away from the flat fee guys. This is a really tough market as you know. Decent agents took 4% last time because it was easy and they knew they would get paid quikly. This time around it will be harder, you will need a better agent and I’d focus more on getting the right help than the cheapest help. 1% is $15,000. Your house is probably losing that much value every 1 to 2 weeks. The right agent who gets your house sold quickly at a fair market price is worth paying for.

    January 1, 2009 at 3:07 PM #322761
    sdrealtor
    Participant

    You will need to offer at least 2.5% to the buyers agent if you expect to get the property shown regularly. Expect to pay 1% to a listing agent for minimal to no services beyond the 3 P’s (put it in the MLS, put a sign in the ground and pray). For 1.5 to 2% you should get a decent level of service. For the major brokerages expect to pay 2.5%.

    I would stay away from the flat fee guys. This is a really tough market as you know. Decent agents took 4% last time because it was easy and they knew they would get paid quikly. This time around it will be harder, you will need a better agent and I’d focus more on getting the right help than the cheapest help. 1% is $15,000. Your house is probably losing that much value every 1 to 2 weeks. The right agent who gets your house sold quickly at a fair market price is worth paying for.

    January 1, 2009 at 3:07 PM #322777
    sdrealtor
    Participant

    You will need to offer at least 2.5% to the buyers agent if you expect to get the property shown regularly. Expect to pay 1% to a listing agent for minimal to no services beyond the 3 P’s (put it in the MLS, put a sign in the ground and pray). For 1.5 to 2% you should get a decent level of service. For the major brokerages expect to pay 2.5%.

    I would stay away from the flat fee guys. This is a really tough market as you know. Decent agents took 4% last time because it was easy and they knew they would get paid quikly. This time around it will be harder, you will need a better agent and I’d focus more on getting the right help than the cheapest help. 1% is $15,000. Your house is probably losing that much value every 1 to 2 weeks. The right agent who gets your house sold quickly at a fair market price is worth paying for.

    January 1, 2009 at 3:07 PM #322858
    sdrealtor
    Participant

    You will need to offer at least 2.5% to the buyers agent if you expect to get the property shown regularly. Expect to pay 1% to a listing agent for minimal to no services beyond the 3 P’s (put it in the MLS, put a sign in the ground and pray). For 1.5 to 2% you should get a decent level of service. For the major brokerages expect to pay 2.5%.

    I would stay away from the flat fee guys. This is a really tough market as you know. Decent agents took 4% last time because it was easy and they knew they would get paid quikly. This time around it will be harder, you will need a better agent and I’d focus more on getting the right help than the cheapest help. 1% is $15,000. Your house is probably losing that much value every 1 to 2 weeks. The right agent who gets your house sold quickly at a fair market price is worth paying for.

    January 2, 2009 at 10:51 AM #322574
    urbanrealtor
    Participant

    I am not as averse as sdr to flat fee guys. Some are good. Others charge less because they do not get many referrals. I used to work as an office manager for a flat fee helpusell. I went elsewhere when it became clear that our new broker was scaring away the clientele (which damages the licensees’ names as well). In other words, our office switched from one with lots of referral business to one totally dependent on discounted commissions.

    I think its fair to ask any agent for 3 referrals and contact info.

    January 2, 2009 at 10:51 AM #322919
    urbanrealtor
    Participant

    I am not as averse as sdr to flat fee guys. Some are good. Others charge less because they do not get many referrals. I used to work as an office manager for a flat fee helpusell. I went elsewhere when it became clear that our new broker was scaring away the clientele (which damages the licensees’ names as well). In other words, our office switched from one with lots of referral business to one totally dependent on discounted commissions.

    I think its fair to ask any agent for 3 referrals and contact info.

    January 2, 2009 at 10:51 AM #322981
    urbanrealtor
    Participant

    I am not as averse as sdr to flat fee guys. Some are good. Others charge less because they do not get many referrals. I used to work as an office manager for a flat fee helpusell. I went elsewhere when it became clear that our new broker was scaring away the clientele (which damages the licensees’ names as well). In other words, our office switched from one with lots of referral business to one totally dependent on discounted commissions.

    I think its fair to ask any agent for 3 referrals and contact info.

    January 2, 2009 at 10:51 AM #322996
    urbanrealtor
    Participant

    I am not as averse as sdr to flat fee guys. Some are good. Others charge less because they do not get many referrals. I used to work as an office manager for a flat fee helpusell. I went elsewhere when it became clear that our new broker was scaring away the clientele (which damages the licensees’ names as well). In other words, our office switched from one with lots of referral business to one totally dependent on discounted commissions.

    I think its fair to ask any agent for 3 referrals and contact info.

    January 2, 2009 at 10:51 AM #323076
    urbanrealtor
    Participant

    I am not as averse as sdr to flat fee guys. Some are good. Others charge less because they do not get many referrals. I used to work as an office manager for a flat fee helpusell. I went elsewhere when it became clear that our new broker was scaring away the clientele (which damages the licensees’ names as well). In other words, our office switched from one with lots of referral business to one totally dependent on discounted commissions.

    I think its fair to ask any agent for 3 referrals and contact info.

    January 2, 2009 at 10:59 AM #322584
    sdrealtor
    Participant

    Referrals from past clients are definitely a good idea. Besides the inattention to detail I find in flat fee guys, I know way to many ex-flat fee guys (and gals). UR and SD R are more proof. IMO, its a lousy business model and i have yet to meet someone that has been successfully doing it for more than a couple years.

    January 2, 2009 at 10:59 AM #322929
    sdrealtor
    Participant

    Referrals from past clients are definitely a good idea. Besides the inattention to detail I find in flat fee guys, I know way to many ex-flat fee guys (and gals). UR and SD R are more proof. IMO, its a lousy business model and i have yet to meet someone that has been successfully doing it for more than a couple years.

    January 2, 2009 at 10:59 AM #322991
    sdrealtor
    Participant

    Referrals from past clients are definitely a good idea. Besides the inattention to detail I find in flat fee guys, I know way to many ex-flat fee guys (and gals). UR and SD R are more proof. IMO, its a lousy business model and i have yet to meet someone that has been successfully doing it for more than a couple years.

    January 2, 2009 at 10:59 AM #323006
    sdrealtor
    Participant

    Referrals from past clients are definitely a good idea. Besides the inattention to detail I find in flat fee guys, I know way to many ex-flat fee guys (and gals). UR and SD R are more proof. IMO, its a lousy business model and i have yet to meet someone that has been successfully doing it for more than a couple years.

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