Listing Commissions and Related Issues
About Commissions
In most areas there is a customary percentage that real estate agents expect to earn as a
commission. When completing the listing agreement, you and your agent will negotiate and
agree on the amount of the real estate commission.
When you agree to a commission with a listing agent, you should keep in mind that there are
usually two agents involved in most transactions. Most of the time, only part of the commission
goes to the listing agent's company. The other portion goes to the company representing the
buyer.
Some commission-related questions you could ask:
Will your property be listed in the Multiple Listing Service? Being listed in the MLS expands
your sales force. Every agent is invited to bring potential buyers to your property. This larger
supply of buyers effects your pricing power and the ability to sell your home more quickly.
What is the effect on the company representing the buyer? Since part of the commission
usually goes to the company representing the buyer, you may want to ask whether that portion
of the commission offers the customary amount. As mentioned above, the more agents that
show your property, the more pricing power you have and the more quickly your home will sell.
What is the effect on marketing? Very few properties are sold through advertising or open
houses, but it does happen. Most often, those ads generate calls from potential buyers or
sellers, who end up as clients for real estate agents -- and you want agents to bring potential
buyers to your property. Advertising your property to other agents has a higher impact than
direct advertising to consumers.
Will you be tied in to other services? A real estate company with bundled services has more
income opportunity which may allow them to offer lower prices. However, there are a few
companies whose additional services are not priced competitively with opportunities you can
find on the open market. You should be sure to ask lots of questions and determine whether
you are limited to certain choices or you have the freedom to also explore the open market.
About Commissions
In most areas there is a customary percentage that real estate agents expect to earn as a
commission. When completing the listing agreement, you and your agent will negotiate and
agree on the amount of the real estate commission.
When you agree to a commission with a listing agent, you should keep in mind that there are
usually two agents involved in most transactions. Most of the time, only part of the commission
goes to the listing agent's company. The other portion goes to the company representing the
buyer.
Some commission-related questions you could ask:
Will your property be listed in the Multiple Listing Service? Being listed in the MLS expands
your sales force. Every agent is invited to bring potential buyers to your property. This larger
supply of buyers effects your pricing power and the ability to sell your home more quickly.
What is the effect on the company representing the buyer? Since part of the commission
usually goes to the company representing the buyer, you may want to ask whether that portion
of the commission offers the customary amount. As mentioned above, the more agents that
show your property, the more pricing power you have and the more quickly your home will sell.
What is the effect on marketing? Very few properties are sold through advertising or open
houses, but it does happen. Most often, those ads generate calls from potential buyers or
sellers, who end up as clients for real estate agents -- and you want agents to bring potential
buyers to your property. Advertising your property to other agents has a higher impact than
direct advertising to consumers.
Will you be tied in to other services? A real estate company with bundled services has more
income opportunity which may allow them to offer lower prices. However, there are a few
companies whose additional services are not priced competitively with opportunities you can
find on the open market. You should be sure to ask lots of questions and determine whether
you are limited to certain choices or you have the freedom to also explore the open market.
| Realistic Listing Fees For This Unrealistic Market Click Here Or Call Doug Baird For More Details 616-554-5796 Michigan For Sale By Owner |