Comission Rebate trend

[infoseeker]

I am an newbie here. Planning on interviewing some agents next week to start our home search. Would like to know current market percentage rates for commission( seller agent and buyer agent). Would also like to know what is the reasonable percentage to ask as rebate. Considering a home in 525K-575K

[SD Realtor]

Commission structures vary substantially.

First let’s talk about the listing agent (agent who represents the seller). For the larger traditional brokerages the commssion is anywhere from 2.5-3.0%. Smaller independents may charge less. There are places like Assist to Sell and Help U Sell that charge anywhere in a range from 1-1.5%.

The selling agent (agent who represents the buyer) is generally paid out from a commission that is known as the coop commission, (coop – cooperating broker) and this is paid out by the seller. In the market conditions we have today the recommended coop commission is 2.5% on up.

*******************

There are plenty of places on line you can find that offer commission rebates. Redfin and others come to mind. Lots of independents also offer rebates as well. The larger traditional brokerages are usually not in the business of offering rebates, but it never hurts to ask.

The amount that you are going to ask for is up to you but it should probably be commensurate with how much work you expect the agent to do for you right?

[SD Realtor]

Commission structures vary substantially.

First let’s talk about the listing agent (agent who represents the seller). For the larger traditional brokerages the commssion is anywhere from 2.5-3.0%. Smaller independents may charge less. There are places like Assist to Sell and Help U Sell that charge anywhere in a range from 1-1.5%.

The selling agent (agent who represents the buyer) is generally paid out from a commission that is known as the coop commission, (coop – cooperating broker) and this is paid out by the seller. In the market conditions we have today the recommended coop commission is 2.5% on up.

*******************

There are plenty of places on line you can find that offer commission rebates. Redfin and others come to mind. Lots of independents also offer rebates as well. The larger traditional brokerages are usually not in the business of offering rebates, but it never hurts to ask.

The amount that you are going to ask for is up to you but it should probably be commensurate with how much work you expect the agent to do for you right?

[SD Realtor]

Commission structures vary substantially.

First let’s talk about the listing agent (agent who represents the seller). For the larger traditional brokerages the commssion is anywhere from 2.5-3.0%. Smaller independents may charge less. There are places like Assist to Sell and Help U Sell that charge anywhere in a range from 1-1.5%.

The selling agent (agent who represents the buyer) is generally paid out from a commission that is known as the coop commission, (coop – cooperating broker) and this is paid out by the seller. In the market conditions we have today the recommended coop commission is 2.5% on up.

*******************

There are plenty of places on line you can find that offer commission rebates. Redfin and others come to mind. Lots of independents also offer rebates as well. The larger traditional brokerages are usually not in the business of offering rebates, but it never hurts to ask.

The amount that you are going to ask for is up to you but it should probably be commensurate with how much work you expect the agent to do for you right?

[SD Realtor]

Commission structures vary substantially.

First let’s talk about the listing agent (agent who represents the seller). For the larger traditional brokerages the commssion is anywhere from 2.5-3.0%. Smaller independents may charge less. There are places like Assist to Sell and Help U Sell that charge anywhere in a range from 1-1.5%.

The selling agent (agent who represents the buyer) is generally paid out from a commission that is known as the coop commission, (coop – cooperating broker) and this is paid out by the seller. In the market conditions we have today the recommended coop commission is 2.5% on up.

*******************

There are plenty of places on line you can find that offer commission rebates. Redfin and others come to mind. Lots of independents also offer rebates as well. The larger traditional brokerages are usually not in the business of offering rebates, but it never hurts to ask.

The amount that you are going to ask for is up to you but it should probably be commensurate with how much work you expect the agent to do for you right?

[SD Realtor]

Commission structures vary substantially.

First let’s talk about the listing agent (agent who represents the seller). For the larger traditional brokerages the commssion is anywhere from 2.5-3.0%. Smaller independents may charge less. There are places like Assist to Sell and Help U Sell that charge anywhere in a range from 1-1.5%.

The selling agent (agent who represents the buyer) is generally paid out from a commission that is known as the coop commission, (coop – cooperating broker) and this is paid out by the seller. In the market conditions we have today the recommended coop commission is 2.5% on up.

*******************

There are plenty of places on line you can find that offer commission rebates. Redfin and others come to mind. Lots of independents also offer rebates as well. The larger traditional brokerages are usually not in the business of offering rebates, but it never hurts to ask.

The amount that you are going to ask for is up to you but it should probably be commensurate with how much work you expect the agent to do for you right?

[infoseeker]

Thanks a lot for the nomeclature clarification. One of our shortlisted buyer agents is offering what I belive is a reasonable commission rebate percentage in addition to having good recos from recent homebuyers. I am planning to see if he is open for a fixed dollar amount commission and give remaining buyer (coop) commission as rebate to us. The fixed commission I plan to negotiate will be based on our home price range and his quoted effective commission percentage. I believe fixed dollar amount commision will be the least conflict of interest scenario. Are there any downsides with this approach?

[infoseeker]

Thanks a lot for the nomeclature clarification. One of our shortlisted buyer agents is offering what I belive is a reasonable commission rebate percentage in addition to having good recos from recent homebuyers. I am planning to see if he is open for a fixed dollar amount commission and give remaining buyer (coop) commission as rebate to us. The fixed commission I plan to negotiate will be based on our home price range and his quoted effective commission percentage. I believe fixed dollar amount commision will be the least conflict of interest scenario. Are there any downsides with this approach?

[infoseeker]

Thanks a lot for the nomeclature clarification. One of our shortlisted buyer agents is offering what I belive is a reasonable commission rebate percentage in addition to having good recos from recent homebuyers. I am planning to see if he is open for a fixed dollar amount commission and give remaining buyer (coop) commission as rebate to us. The fixed commission I plan to negotiate will be based on our home price range and his quoted effective commission percentage. I believe fixed dollar amount commision will be the least conflict of interest scenario. Are there any downsides with this approach?

[infoseeker]

Thanks a lot for the nomeclature clarification. One of our shortlisted buyer agents is offering what I belive is a reasonable commission rebate percentage in addition to having good recos from recent homebuyers. I am planning to see if he is open for a fixed dollar amount commission and give remaining buyer (coop) commission as rebate to us. The fixed commission I plan to negotiate will be based on our home price range and his quoted effective commission percentage. I believe fixed dollar amount commision will be the least conflict of interest scenario. Are there any downsides with this approach?

[infoseeker]

Thanks a lot for the nomeclature clarification. One of our shortlisted buyer agents is offering what I belive is a reasonable commission rebate percentage in addition to having good recos from recent homebuyers. I am planning to see if he is open for a fixed dollar amount commission and give remaining buyer (coop) commission as rebate to us. The fixed commission I plan to negotiate will be based on our home price range and his quoted effective commission percentage. I believe fixed dollar amount commision will be the least conflict of interest scenario. Are there any downsides with this approach?

[NotCranky]

You still don’t mention how much work you expect the agent to do. What if you need to see dozens of houses and fall out of escrow a couple of times at no fault of the agent? Risk is not balanced for the independent agent with what you have proposed so far. Not in my opinion anyway.

I think 50% or more is a good rebate if you hand the agent a deal on a silver platter. If they know you well enough to be fairly certain you will perform, it might be a reasonable risk to offer you 50% including a more lengthy service as an agent fully engaged in helping you find a deal/place. I’d be thinking sliding scale beyond that. Of course then you could just dump them and reset the rebate potential with a new one.

[NotCranky]

You still don’t mention how much work you expect the agent to do. What if you need to see dozens of houses and fall out of escrow a couple of times at no fault of the agent? Risk is not balanced for the independent agent with what you have proposed so far. Not in my opinion anyway.

I think 50% or more is a good rebate if you hand the agent a deal on a silver platter. If they know you well enough to be fairly certain you will perform, it might be a reasonable risk to offer you 50% including a more lengthy service as an agent fully engaged in helping you find a deal/place. I’d be thinking sliding scale beyond that. Of course then you could just dump them and reset the rebate potential with a new one.

[NotCranky]

You still don’t mention how much work you expect the agent to do. What if you need to see dozens of houses and fall out of escrow a couple of times at no fault of the agent? Risk is not balanced for the independent agent with what you have proposed so far. Not in my opinion anyway.

I think 50% or more is a good rebate if you hand the agent a deal on a silver platter. If they know you well enough to be fairly certain you will perform, it might be a reasonable risk to offer you 50% including a more lengthy service as an agent fully engaged in helping you find a deal/place. I’d be thinking sliding scale beyond that. Of course then you could just dump them and reset the rebate potential with a new one.

[NotCranky]

You still don’t mention how much work you expect the agent to do. What if you need to see dozens of houses and fall out of escrow a couple of times at no fault of the agent? Risk is not balanced for the independent agent with what you have proposed so far. Not in my opinion anyway.

I think 50% or more is a good rebate if you hand the agent a deal on a silver platter. If they know you well enough to be fairly certain you will perform, it might be a reasonable risk to offer you 50% including a more lengthy service as an agent fully engaged in helping you find a deal/place. I’d be thinking sliding scale beyond that. Of course then you could just dump them and reset the rebate potential with a new one.

[Author]

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