[CoachKandSportsguy]

Just signed a R/E agreement to sell my parent's house

Selling R/E agent commission = 2.5%
Buyer's R/E agent commission = 2.0%
If no buyers agent, Selling R/E company gets 1.5%

min commission = 4.0%
max commission = 4.5%

down from the previously combined 6 %
and down from the single R/E fee of 3% to the selling sales rep.

BUT up from a single rep, no buyers commission of the previous 3% generally agreed. .

Is the new arrangement working for the industry? I am leaning probably, but sample size 1, with my last sale 25 years ago and I don't remember the commission structure, so inconclusive.

@retiredguy123. . . I already know you won't pay the buyers commission. .

[BrianL99]

Originally Posted by CoachKandSportsguy

Just signed a R/E agreement to sell my parent's house

Selling R/E agent commission = 2.5%
Buyer's R/E agent commission = 2.0%
If no buyers agent, Selling R/E company gets 1.5%

min commission = 4.0%
max commission = 4.5%

down from the previously combined 6 %
and down from the single R/E fee of 3% to the selling sales rep.

BUT up from a single rep, no buyers commission of the previous 3% generally agreed. .

Is the new arrangement working for the industry? I am leaning probably, but sample size 1, with my last sale 25 years ago and I don't remember the commission structure, so inconclusive.

@retiredguy123. . . I already know you won't pay the buyers commission. .

Standard in MA for the last 20 years, has been 5%. I haven't seen a 6% Commission in MA for at least 25 years, unless it was an unusual circumstance.

The Commission has been moving towards 4.5% for the last 5-6 years, primarily based on competition from cut-rate brokers and online services.

I think you paid the going rate, maybe saved .5%.

Going forward for the next few years, I think 4%-4.5% is going to be where rates settle out.

[Normal]

Originally Posted by CoachKandSportsguy

Just signed a R/E agreement to sell my parent's house

Selling R/E agent commission = 2.5%
Buyer's R/E agent commission = 2.0%
If no buyers agent, Selling R/E company gets 1.5%

min commission = 4.0%
max commission = 4.5%

down from the previously combined 6 %
and down from the single R/E fee of 3% to the selling sales rep.

BUT up from a single rep, no buyers commission of the previous 3% generally agreed. .

Is the new arrangement working for the industry? I am leaning probably, but sample size 1, with my last sale 25 years ago and I don't remember the commission structure, so inconclusive.

@retiredguy123. . . I already know you won't pay the buyers commission. .

Soon realtors won’t exist. You can search, buy and sell on line. Like clothing purchased online, there will e resistance for a while. Eventually though, realtors will fade into the sunset.

[scubawva]

Looks like you signed an agreement to list the house for sale, not an agreement to sell it.

[CoachKandSportsguy]

Originally Posted by scubawva

Looks like you signed an agreement to list the house for sale, not an agreement to sell it.

semantics - as I signed an agreement with a R/E agent and petty observation when the point of thread is the commissions. .

[manaboutown]

Originally Posted by CoachKandSportsguy

semantics - as I signed an agreement with a R/E agent and petty observation when the point of thread is the commissions. .

Commissions become subject to renegotiation during the period offers are sent back and forth between buyers and sellers. They can be reduced at such times. Rarely are they increased.

I paid a 3% commission split between selling and buying agents on the last property I sold.

It ain't over 'til the fat lady sings.

[CarlR33]

Originally Posted by Normal

Soon realtors won’t exist. You can search, buy and sell on line. Like clothing purchased online, there will e resistance for a while. Eventually though, realtors will fade into the sunset.

That would be nice but like the Daily Sunny some things won’t change no matter what the people want.

[BrianL99]

Originally Posted by manaboutown

Commissions become subject to renegotiation during the period offers are sent back and forth between buyers and sellers.

So you sign a contract for a Broker to represent you ... then try to renegotiate, when a potential buyer shows up?

Doesn't sound very honorable to me.

[manaboutown]

Originally Posted by BrianL99

So you sign a contract for a Broker to represent you ... then try to renegotiate, when a potential buyer shows up?

Doesn't sound very honorable to me.

Geez! I am not claiming it is honorable or dishonorable. It just happens. Based on what I have observed and experienced over the years is that it occurs in the normal course of the real estate sales business, more frequently in commercial sales than in residential. The reason it happens is to close a deal that otherwise would not close. Indeed, what I have usually seen and experienced is that the buyer and seller cannot agree on a price. They are close, but no cigar. One or both of the agents if there are buyer and seller agents involved offers to reduce a commission to gain a deal as no deal means no commission. A listing agent is of course free to not offer to receive less commission and continue to seek a buyer willing to pay a price to which the seller will agree. A buyer's agent can stand pat , too. So no deal. That happens, too. It is a free country.

[BrianL99]

Originally Posted by manaboutown

Geez! I am not claiming it is honorable or dishonorable. It just happens. Based on what I have observed and experienced over the years is that it occurs in the normal course of the real estate sales business, more frequently in commercial sales than in residential. The reason it happens is to close a deal that otherwise would not close. Indeed, what I have usually seen and experienced is that the buyer and seller cannot agree on a price. They are close, but no cigar. One or both of the agents if there are buyer and seller agents involved offers to reduce a commission to gain a deal as no deal means no commission. A listing agent is of course free to not offer to receive less commission and continue to seek a buyer willing to pay a price to which the seller will agree. A buyer's agent can stand pat , too. So no deal. That happens, too. It is a free country.

I've done 100's of residential deals & 100's of commercial transactions ... I've never seen it happen.

If 1% changes someone's motivation to buy or sell, they shouldn't be doing the deal.

JMOYMMV

[asianthree]

Originally Posted by Normal

Soon realtors won’t exist. You can search, buy and sell on line. Like clothing purchased online, there will e resistance for a while. Eventually though, realtors will fade into the sunset.

Yesterday a Village Trolley stopped at Ezell, a group of 20+ people touring the facility. All had brand new VLS name tags.
So either some have left the fold, because over 350 agents are not getting enough business, or additional VLS added to the 350+ agents.

Either way additional new sales people for TV

[jsa]

Originally Posted by CoachKandSportsguy

Just signed a R/E agreement to sell my parent's house

Selling R/E agent commission = 2.5%
Buyer's R/E agent commission = 2.0%
If no buyers agent, Selling R/E company gets 1.5%

min commission = 4.0%
max commission = 4.5%

down from the previously combined 6 %
and down from the single R/E fee of 3% to the selling sales rep.

BUT up from a single rep, no buyers commission of the previous 3% generally agreed. .

Is the new arrangement working for the industry? I am leaning probably, but sample size 1, with my last sale 25 years ago and I don't remember the commission structure, so inconclusive.

@retiredguy123. . . I already know you won't pay the buyers commission. .

We signed an agent representation agreement for our MA home in Sept 2024 with the following terms:
Selling R/E agent commission = 2.5%
Buyer's R/E agent commission = 2.5%
If no buyers agent, Selling R/E company gets 1.0%

We had intended to list it in Feb 2025 but signed in Sept because I wanted the pictures / drone videos taken in the Fall, before we lost all the leaves + yard went dormant.

We were approached by someone who heard we'd be listing and sold it in Nov 2024 with no buyers agent so paid 3.5%. No inspection, no contingencies, and we got to pick the closing date.

It cost us 3.5% but oh well...

[retiredguy123]

Originally Posted by BrianL99

I've done 100's of residential deals & 100's of commercial transactions ... I've never seen it happen.

If 1% changes someone's motivation to buy or sell, they shouldn't be doing the deal.

JMOYMMV

When I sold my house in Virginia, the buyers offered a lower price than in the listing price, and it included a provision that I had to pay an additional 3 percent of the sales price for the buyer's closing cost. I told my agent that the only way I would accept the offer was for her to split the 3 percent with me, and she agreed to do it.

Every listing contract I have seen specifies a sales price. If the agent brings in a lower offer, the listing agreement is not satisfied, and I see nothing wrong with negotiating a lower sales commission. Note that I provided zero input into the initial listing price. I told the agent that she is the experienced professional, and that she should know how to price the house. She asked me for input, but I refused.

[Spinnaker]

I never paid more than 3% and I sold 3 houses in Ma over 25 years. Last home sold in 2020

[jojoturf]

NY max = 6% total. House will sell itself at Open House in early Aug. For sure, a money grab!