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At what % commission does it make sense to hire a Realtor to sell your house?

  1. tipstoretireearly profile image85
    tipstoretireearlyposted 6 years ago

    At what % commission does it make sense to hire a Realtor to sell your house?

    Many Realtors charge a 6% commission to sell a house.  Some Realtors accept a 5% commission, while others insist Sellers will net more money with a 7% commission.  What's especially odd about the percentage commission structure of Realtor fees is that it doesn't seem to vary much in different markets even if the average selling price of homes in those markets is very different, or if the market is a Buyer's market or a Seller's market.  What % commission do you think Realtors should charge?  Should it depend on the price of the house?  Should it depend on how hot the real estate market is?

  2. lawrence2012 profile image55
    lawrence2012posted 6 years ago

    6% is standard commission, you need to remember that this is typically split 50/50 between the listing agent and the selling agent.  If an agent works for a larger agency, they will again need to share a piece of this with the greater company.  The higher the commission, the harder an agent will likely work to get you the highest price possible, because this will earn them more money.  Although this really isn't ethical, as an agent should try to get the highest price possible regardless.  This rate of commission doesn't vary from one location to another because it is percentage based, so it naturally adjusts itself to the area.

  3. Greg Cremia profile image61
    Greg Cremiaposted 5 years ago

    You could try 5.5% commission with 2.5% going to your agent and 3% to the buyer's agent. This puts the most motivation where it counts.

 
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