|
| |
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.
|
