Thread: realtor question

What happens is there is a co-op compensation from the listing broker to the seller broker. Usually it is 50% of the commission, even if everything is negociable...
So, let's take an example:
Owner agrees to pay 6% commission.
Buyer's agent shows and sells the property.
3% for Listing agent and 3% for buyer's agent.

ok, thakns alot, just wanted to make sure i didnt have to pay anything! =)

Owner agrees to pay 6% commission.

Would you say 6% is the norm in the U.S.A?

That's what I've heard quoted, but it does vary by area, type of listing (residential or commercial), etc. But anything goes, including flat rate, variable rate, etc.

Same for the commisison splits. Typically buyer and seller brokerages split it 50/50. Then agent and broker split it (percent typically varies by office, number of sales, etc.). But even this can vary significantly. In some areas each side (buyer and seller) pays their own brokerage, so there is no split between buyer and seller.

-Tim

Originally Posted by Philip dT

Would you say 6% is the norm in the U.S.A?

I'll say yes.
I've been an agent in Pembroke Pines, FL area for 6 years and 6% was(is) average. I'm now in TN where it's more 7% but owners ask always for 6%, which is average again. Land/lot is 10% though...

Here in St. Louis Missouri we cannot rebate commissions, but what we can do is Flat Fee Listings. The seller still pays a buyers agent 3%, but pays my company only $399.00 total. This saves sellers $2600.00 per $100,000.00 their house sells for.

6% used to be the norm but when the RE market was very hot over the past few years, that got down to 2 or 3%.

now that its harder to sell houses, realtors are going back to 6%.

5% here in the MD area has been the norm lately though we haven't seen too much of a decline in activity in my area.

In oregon I've see the commission range from 5-6%...I'm not sure if I've ever seen it less than that. Oregon seems to still be going pretty strong which is good