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03-17-2024, 03:17 PM
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Soaring Eagle member
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Join Date: Oct 2020
Location: Here, there, a lot of time in the Caribbean and keys, not much time spent in cold climates
Posts: 2,317
Thanks: 1,777
Thanked 2,078 Times in 893 Posts
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Quote:
Originally Posted by Plinker
If VLS does not reduce their commission to 3% on pre owned homes, their listings will plummet. If the average pre owned home sells for $400,000 and VLS sells 3500 pre owned homes annually, this adds up to $84,000,000 in commissions at 6%. This law is long overdue and prevents double-dipping where the selling brokerage keeps the entire 6%, if they represent both sides of the transaction.
Consider the savings: A $400,000 home generates a $24,000 commission at 6%. I have never had a problem negotiating a 5% commission and this law will now allow me to pay only 2 1/2% to the listing agent. This would reduce the selling agent commission on a $400,000 home to $10,000 allowing the seller to pocket an extra $15,000.
I agree with the post that the seller may be asked to provide cash back to the buyer to compensate their agent but the seller has the option to agree, refuse or raise the price of the home by the cash-back amount.
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A little levity here (since some readers will always frown on a bit of light hearted humor), But should all this happen can you imagine a person selling only one house every OTHER month trying to live on only 60K a year, or an agent who averages one per month trying to get by on 120K ?
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