Commission Rates For Realtors
When selling your home, it is highly recommended to interview at least three agents. Preferably select agents that greatly vary in services. Such as, a 6% agent, a local agent and a discount real estate agent. The percentage realtors charge can vary from 6-7% to as low as 3-4%.
All these different types of agents will provide a different experience when it comes to selling your home. Many discount agents give the term a bad name by only providing minimal service and offering less to the buyer’s agent. While many 6% agents do merely the same job as the discounted 4% agents.
Agents For Less Than 6%
Hiring a 6% agent can bring many benefits. Many times, these agents have been in the industry for several years. They provide services like paying for professional staging and photography. However, not all 6% go the distance for the commission rates. With technology today, marketing your home can be done primarily online. Professional photos can come from a great camera with a post-production computer program and staging can sometimes take away from the homes over square footage.
Any agent that is willing to spend their own money as an investment in your home is one of the many signs of a good agent.
4% Total Commission Realtors
The quality of discount realtors can be dependent upon the size of the discount. 4-4 ½% is an ideal discount rate. This provides you, the homeowner, a substantial discount on agent commissions while still giving the agent enough room to invest their money into marketing your home.
Just like your looking to save money, the agent is still hoping to make some as well. In order to provide the same 6% service at a discount rate, there would have to be enough room for the agent to make money.
If your home sells for $350,000 and the listing agent makes 1.5% then they make a gross commission of $5,250. This is the gross amount. By the time the agent receives their net check from their brokerage they will have made about ½-¾’s of that check, so around $4,000. Plus more than likely 30% of that $4,000 will go to taxes. Meaning the agent will have a true net of $2,800. At this rate, an agent only making that much on a single side of transaction would not invest extra time, money and effort into getting your home sold. Half a percent of commission doesn’t seem like much, but it’s the difference between true full service and bare minimum.
Bottom line, when searching for an agent 6% doesn’t always mean the best service and discount agents aren’t a bad option. What’s important is if the agent is going to work for you, your needs and your goals to sell your home.
Percentage Realtors Charge:
Real Estate Agent Commission Break Down
How Does The 4% Total Commission Work?
Typical real estate commission can be split 2-2.5% for the buyer’s agent and 2-4% for the listing agent. Traditional realtors that charge more, may offer incentives to justify the increase on the listing side. Bottomline is that even professional photos and 3D tours do not cost enough to justify that price differnce.
With 4% Total Commission, we split it 2% for the Buyer’s Agent and 2% for the Listing Agent. We have seen no delays or issues with buyer’s agent showing our homes even with this split. 2% is very standard on the CRMLS.
Our list to escrow time period varies, but typically our homes sell with 14-25 days from the time they hit the market. Further proving the 2% doesn’t affect buyer agent showings.
4% Total Commission Realtors VS. Traditional Realtors
Working with a Low Commission Realtor doesn’t mean a discount in service- it means saving you thousands in commissions. Ashley offers all the full service offerings that traditional 6% agents do, at a lower commission rate.
When you work with Ashley, you get the best of both worlds: full service and support from a top-rated agent for a significantly reduced commission fee. Ashley only charges 2% to list your home and 2% for the buyer’s agent. That’s 4% Total Commission with full service included. No additional fees. No upfront costs.
The results speak for themselves: Ashley has saved seller’s an average of $8,500 in commissions per transaction — and gets them offers 25% faster. Sound too good to be true? We know, but there are no strings attached. Just savings. Lots of savings.