Cassie23
Carpal \'Tunnel
Reged: 10/07/05
Posts: 14714
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I know that the percentage that realtors get change according to experience, marketing, etc. But on average how much will a realtor/associate broker receive from a sale?
Does anyone know how this works?
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1966Gal
Carpal \'Tunnel
Reged: 04/04/08
Posts: 10098
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A typical commission is 5 to 6%. The broker usually gets 1/2 and the realtor gets 1/2. Once a realtor is more established, their broker might give them more than 1/2.
But lets say I buy a house using 'my' realtor, but the house is listed with another realtor.... at 6% commission.
Then the listing agent and their broker gets 3% and my agent and their broker get 3%.
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The Gov cannot give anything to anyone - that they have not first taken away from someone else.
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preemiemom
Carpal \'Tunnel
Reged: 01/17/07
Posts: 19391
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[quote]I know that the percentage that realtors get change according to experience, marketing, etc. But on average how much will a realtor/associate broker receive from a sale?
Does anyone know how this works? [/quote]
When I worked in real estate for the summer after DD was born, it was typically minimum 5%. 2% to listing agent, 2% to selling agent, 1% to the brokerage to cover MLS fees, overhead, blah blah blah.
Sometimes they would do 6. Always the 1% to the brokerage. Say 3% to the selling agent, 2% to the listing. Thereby putting a "premium" on the house for an agent to SELL the house. Or an incentive if that term is better.
But it varies by brokerage I'm sure. The one I worked for wouldn't accept a deal less than 5%.
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tmf
recently joined
Reged: 05/12/08
Posts: 23
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[quote] 2% to listing agent, 2% to selling agent, 1% to the brokerage to cover MLS fees, overhead, blah blah blah.
[/quote]
Some have additional fees. When we sold my house, the realtor was "describing" what the paperwork said instead of letting us (and by us, I mean me) read it. (Yes, I know this was dumb.) Turns out it said + $500 for the "work" ...so it was 3% to each agent and a $500 fee.
I have no idea how much of that the realtor had to share with the broker.
Now, we are selling my husbands house and our new realtor had a $300 fee in addition to the 6%. She waived it.
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Spring
Carpal \'Tunnel
Reged: 06/02/04
Posts: 7972
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Where I am, a Realtor can ask for as much or as little as they want. The Competition Bereau forbids any price fixing...not even my brokerage can tell me what *I* have to charge.
What we here consider a "normal rate" is 7% on the first $100,000 of the selling price, and 2.5% on the balance. All rates subject to a 5% tax that goes to the gov't.
You must be aware of the pros and cons of reducing the "normal" commission, especially in a down market. In my market, commission rarely reflects the experience of the Realtor.
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Never consider the possibility of failure; as long as you persist, you will be successful.
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saourgirlt
journeyman
Reged: 05/27/08
Posts: 85
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Too much....Sold my house in Nov got taken to the cleaners.. and keep in mind they are thinking about the sale not your well being, well at least my realtor(s) did not. No disrespect spring just my experience with the girls I delt with.
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Spring
Carpal \'Tunnel
Reged: 06/02/04
Posts: 7972
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Oh, no worries...unfortnately, there are bad and good in every business. Sorry to hear you had a bad experience. I had my own bad experiences before I became a Realtor too :-)
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Never consider the possibility of failure; as long as you persist, you will be successful.
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saourgirlt
journeyman
Reged: 05/27/08
Posts: 85
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[quote]Oh, no worries...unfortnately, there are bad and good in every business. Sorry to hear you had a bad experience. I had my own bad experiences before I became a Realtor too :-) [/quote]
If its any consolation I do Finance for an auto group lol.
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Spring
Carpal \'Tunnel
Reged: 06/02/04
Posts: 7972
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lol :-)
My son just did a six week stint in auto sales...I couldn't possibly work in that world!! I am so glad he felt it wasn't his thing! The stories he told me in that short time...yikes!!
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Never consider the possibility of failure; as long as you persist, you will be successful.
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PhoenixRising
Carpal \'Tunnel
Reged: 01/05/07
Posts: 3681
Loc: New York
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Cassie,
Have you decided on moving??
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Be kind, for everyone you meet is fighting a hard battle. --Plato
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