Author Topic: Questions about using a listing agent to sell my house  (Read 1511 times)

hopetogetfi

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Questions about using a listing agent to sell my house
« on: May 18, 2016, 06:30:38 AM »
Hello,

I need some advice regarding selling my house. I plan to hire a seller’s agent to represent me. According to the listing agreement he wants 6% of the listing price, out of which 2.5 % of the purchase price goes to the buyer’s broker. The language of the listing agreement is confusing. Is this normal? I always thought that it is more common to split it 3% +3%. My concern is that this will delay the sale of my house since other brokers will not want to bring their buyers. Also, the property is to be listed with CRMLS. I have an impression that this is not enough exposure. No specific web sites are mentioned. The listing period mentioned is 6 months. Is this normal? Can I request it to be shorter? Is there anything else that I have to consider or pay special attention to? Any advice would be greatly appreciated. Please share your experience and wisdom. Thanks!

Drifterrider

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Re: Questions about using a listing agent to sell my house
« Reply #1 on: May 18, 2016, 08:20:50 AM »
It is your house and you can request whatever you want.  Not saying you will get it but it doesn't hurt to ask.

What I have normally seen is a 50/50 split on the commission unless the listing agent also sells the house (in which case I would expect a lower commission to be paid and would want that in writing).

A company I worked with (as a client) charged 6% (50/50 split) unless the buyer's agent also worked for the same company in which case the fee was 5% (50/50).

Have you interviewed several agents?  If they can't sell themselves to you, they probably can't sell your house.  There are a lot of agents who only "list" the house and then don't do a lot of work.  There are others who are "Johnny on the spot".

Interview several.

Jon Bon

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Re: Questions about using a listing agent to sell my house
« Reply #2 on: May 18, 2016, 12:41:33 PM »
Find a flat fee agent.

I've sold 2 houses and paid my agent a total of $550.

You have to do your own showings but just  lock box for 20 bucks and just give agents the code. Honesty that is all a sellers agent is going to do.

Paying a real estate agent thousands of dollars to enter your house into the MLS is just a joke IMO.


hopetogetfi

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Re: Questions about using a listing agent to sell my house
« Reply #3 on: May 18, 2016, 02:38:43 PM »
I am very curious about flat fee agents. I can certainly buy a lock box and just give the code to the agents. Other than listing the house, what else do flat fee agents do? Do they provide some sort of consultation if there are any problems? Thanks! 

Mr. Green

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Re: Questions about using a listing agent to sell my house
« Reply #4 on: May 18, 2016, 08:44:20 PM »
A flat fee agent will handle the up front paperwork for you (the contract between you and the buyer, ensuring the buyer has loan approval, etc.) and they'll know the ropes of how selling real estates works. Once you have a contract and you're ready to close, the attorney with the title company actually handles all the sale paperwork.

Cyaphas

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Re: Questions about using a listing agent to sell my house
« Reply #5 on: May 18, 2016, 09:00:15 PM »
If you ask around you'll most likely find someone willing to do a 4% or even 3.5%. Where as 1% goes to the listing agent and 2.5% goes to the buyer's agent.

EVERYTHING is negotiable. If an agent says no, go ask another one. Eventually you'll find someone who says yes.

You get what you pay for. A seller's agent getting 1% will list your property on MLS, carry errors and omissions insurance and shield you from a bunch of calls.

If you want the agent to pay for a nice photographer and spend a bunch of time with you going over what might get you a bit of extra money, that will most likely involve you spending some, than 2% is reasonable.

Listing agents don't have to do much, especially in today's market. Buyer's agents do A LOT of leg work and can choose not to show your property.

You can also just pay a lump sum. None of this has to be percentage based.

Source: I'm a Realtor.

Personally I can't go below 2% as a buyer or a seller. If the property sale was high enough, my broker could probably be talked into less than 2%. My broker governs what I can and can't do. In every legal sense, I'm a representative of my Broker.

hopetogetfi

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Re: Questions about using a listing agent to sell my house
« Reply #6 on: May 23, 2016, 08:29:46 AM »
I am writing to thanks everyone who responded to my questions. This is very helpful.