"Low commission" real estate agents?
 

Getting ready to sell investment home, vacant soon, south of 44 in 'new area of The villages' Monarch Grove. Has anyone used listing agents who advertise 'low commission'. .. many advertising 4% or less. Rather not sell it ourselves, but also don't care to pay total 5 -6% fees. I'd like to hear from those who have tried them or have someone to refer.

If you made your living selling real estate which homes would you work harder at selling, those where the commission is 4% or those where the commission is 5%. Your answer to this will tell you which way to go.

It would depend on the sales price
 

If a client was paying 4% for a million dollar home and another client was offering 5% on a 500,000 dollar home, I certainly would like to skim the 40 k over the 25k commission.

The OP is concerned with one home only, not comparing it to those of other values.

You have to think about advertising costs, costs for signage, open houses etc. . . Money has to be up somewhere. With listing agents having to give 3% to selling agents, and then splitting with their brokers according to the agreements they have, it doesn’t leave much for the LA. And you can’t forget about the costs that the inspection has.

Yes, I was agent for many years and it’s tough to make a living, especially for new agents.

What about a flat fee real estate agent? Agent4Less etc.

Talk to Ira Miller.

IM Realty - Your Villages Area Experts

You get what you pay for.

Lots of homes for sale now. Best to price it right to begin with. Probably won't get much interest until after the new year. I don't see many buyers down here now. I would consult with three listing agents and have them propose a price and plan to sell your property. You will know which to go with.

Some people seem to think that a lower commission means that they will get more money for their house. If that is how you think, then you should sell the house yourself. If a salesperson cannot get you more net income from your house, regardless of the commission, then you shouldn't hire them. There are two sides to the equation, the commission and the income you receive. A good salesperson should be worth more money to you than what you pay them in commission.

[QUOTE=shaw8700@outlook.com;2451561]You have to think about advertising costs, costs for signage, open houses etc. . . Money has to be up somewhere. With listing agents having to give 3% to selling agents, and then splitting with their brokers according to the agreements they have, it doesn’t leave much for the LA. And you can’t forget about the costs that the inspection has.

Yes, I was agent for many years and it’s tough to make a living, especially for new agents.[/QUOTE

A good agent is always there for you and your home. A discount agent is not much more than a paper pusher.

[QUOTE=Bay Kid;2451620]I agree. If the agent is just a paper pusher, they don't deserve any commission.

This is the best advise I've read..

You may also want to consider renting the home out for the up coming season, and listing it in the spring.

I used a low commission real estate company to sell my home a while back, and all the normal commission agents must have blacklisted my listing. I got 2 showings in 3 months. Had to take it off the market and sold it in one week when I went with a full commission agent.

LOL. Why didn't the low commission agent sell the house?

Just remember you get what you pay for.

When you hire a real estate agent to sell your house, you are paying them to find a buyer. Period. You are not paying them anything to do paperwork. Read the listing contract.

Low commission affects listing and selling agent. Why would an agent show a house when they’ll make less money? That’s why traffic drops with commission, right?

Picking a honest experienced agent who produces is more important than penny pinching on a little bit of commission.

Selling your home
 

Better worry more about capital gains, that’s what will eat you up.

Cost To Sell
 

It does not cost the realtor any more to sell a $100,000 home or a $400.000 home.
It has become very pricey to sell your home due to the rising values of real estate.
There needs to be a cap on realtor fees, not set on percentages.

You have to consider who gets the 4 or 5 percent. If, as in years past, the commission is split between the seller's agent and the buyer's agent that's one way. In today's market the 4 or 5 percent may be for the seller's agent only. Your point is well taken though. The agent is more likely to work harder for the listing they will make the most money from.

Can you share the address? Maybe you can avoid the commission by selling directly to the buyer.

Good luck selling your home if you go with one of the low commission agents. Sure, they will list your home, but no other agents are going to show it to their clients.

And there isn't going to be open houses if nobody is making money.

Might as well list it for sale by owner.

National flat fee
 

You should consider using a National flat fee listing agent like Beycome. That is what I am doing right now. The fee is $100 and that gets you in MLS and allows realtors to schedule through MLS. Then ypu negotiate the commission with the buyer agent and they will show your home. I recommend paying the buyer agent 2.5%, since the std here is generally 5% total. The buyers agent and their agency then gets the std amount.so they really do not have incentive not to sell your house. If you just reduce the overall commission the agent selling your home has less incentive. A bonus is you can do a one time contract with a Villages agent for their buyer and you now have MLS and vls not having less incentive to sell. I have had 2 VLS agents show mine and an offer with one.

It all depends on the listing agreement. The selling agent could get 3% and the listing agent could get less than 3% (2%,1.5%,1%).

That’s the way to go
 

You really can’t go wrong by giving it a try. If things don’t pan out a month down the road, hire a realtor. There isn’t a need in today’s market to really have the extortionate realtor. Most couples look at Zillow anyway. There isn’t a higher price realtor listings are caused mostly by the added padding price to pay off the realtor. A home listed below their crazy prices sells much more quickly.

Listing agents don't sell houses, they market them. Its a pretty big difference. They make a marketing plan, they advise you on the price, they advise you on what improvements to make to increase demand, they advertise and sometimes stage the house, they make sure your house can be found by buyers and other agents on zillow and MLS. They don't have a stable of buyers that they personally know and to whom they can promote your house. In fact, much of the marketing is not directed at buyers at all, its directed at other agents. The hope is that buyers will contact an agent looking to buy a house, and then that agent will call your agent.

Now if the listing agent has a big reputation, so that buyers call them directly when looking for a house, then its just a big win for them; they would definitely direct them to their own listings first.

I hate the system, but it is what it is.

Now as to the low commission agents.......the first question is what are they going to do for the commission? Are they just going to take the listing, do little and hope to get lucky? Probably. I'd want to know what tangible things they would be doing at their own expense. The second question is, how exactly is the low-cost agent going to get buyers? If other commission-seeking agents aren't calling him/her where are the buyers coming from. Is it just people who see your house on zillow? That could be okay, but its best to know.

These are just observations from someone with no real estate experience except having bought and sold 15 houses.

"Typically" what happens with a cut rate brokerage is that they throw it up on the MLS, but put the buy side commission out at a lower percentage (1%?) then is customary for the area. This means that agents WILL NOT show your home.
I was licensed for over 20 years, and I had to bring in a certain percentage commission to the brokerage on every transaction. Thus, if my "side" of a deal was less then the percentage that the broker required, I would have had to make up the difference from my own pocket. If the cut rate broker put the buy side out at 1% I would have walked away PAYING 1% from my own pocket to my brokerage to close that sale. Why would I show that listing when it will cost me money to sell it? Make certain you know what you are going to get from the reduced commission broker, and percentage they are putting out to buy side on MLS. At 1% or even 1.5% your house will not be shown. Real Estate commissions should not really "cost" you money as a good agent should be making up that percentage in the quality of the offer that they bring you. Keep in mind with today's interest rates and difficulties getting mortgages, and home/flood insurance as required by lenders, a quality deal is one that will close and is about a whole lot more then price alone. Get a good "quality" agent or you might get burned at the 11th hour by a deal that can't close.

Not necessarily. When I bought in TV I walked into a house I was driving by, which was open for viewing. Bought it. I didn’t even ask for the agent’s name. And I didn’t care who was showing it either. And I love my home.

Because any sale is better than no sale at all.

You get that for which you pay. Low commissions are directly related to funds spent on marketing. More incentive usually equates to more effort.

I understand “the effort” and that should be compensated IF you need it. My thinking is I want a certain amount out of a house I want to sell, keeping it within market prices. If any agent can get me that amount, plus their commissions etc - we’re good to go.

Great success with disounted real estate commissions
 

Real estate commissions of 6% may have been justified before the internet, and computerized forms, but not anymore.
- Once a house is listed on the MLS or VLS, buyers are able to search and find candidate homes without any real estate agent assistance.
- Sellers can stage their own homes, following guidelines on the Internet.
- And a lot of the paperwork is now the responsibility of the seller/buyer to complete, after an agent emails access to online forms.

I sold my home, in MD, after interviewing 5 agents and selecting a very successful RE/MAX agent who seemed the most capable and only charged a 1% commission.
- My wife and I had already staged our house, and I took a great set of ~70 photos.
- I hired the agent at 2pm, signed an agent agreement at 4pm, and the home was listed on the MLS by 7pm.
- The first open house was 4 days later and yielded 2 competing offers. The sales contract was in place 2 days later, $26K over the asking price of $780,000 ($806K sale price).

The brokerage fees were:
- Listing agent commission 1% $8,060
- Selling agent commission 2.5% $20,150
- Total commission 3.5% $28,210
- A savings of $20,150 (42%) over the traditional 6% commission of $48,360.

If enough sellers push back on the traditional 6% commission, and select discount brokers, then the market will eventually respond with lower commission rates.

By your savings calculation, you could have saved an additional $28,210 by selling it yourself and paying no commission. So, you are assigning zero value to the agents involved in the sale. That is not how real estate sales work. Good, experienced agents sell houses for more money than bad agents or no agent.

Good for you. This isn't Maryland.

It's an absolute blood bath in the rest of the state and that is now impacting homes here in the Villages. They are now building more spec homes than custom homes because the buyers are not there. I've had my home for sale in South Florida for a year and have dropped the price by almost half - still without ANY offers.

The days of Villagers flipping homes every few years are OVER. Existing homes are now competing against unsold new construction that is being discounted.

If you want to sell in this market, you are going to have to be 10 - 15% lower than everyone else, and you have to have a good agent.

One way to lower your price
 

One way to lower that price is to skip the realtor who is licking their chops to get 4 or 5% of your sale. List it for 5 to 10 k cheaper than anyone else and still come out on top.

In a hot market this is the way to go. Friends in Orange County, CA and on the Big Island of HI bought and sold multiple homes and condos similarly for many years. They found a listing agent for $500 - $800 (the price went up over time), paid a top notch photographer a similar amount, staged the property themselves and paid the selling agent 2.5%. They did this 10 or 15 times in as many years with spec condos as well as their own homes. Two of their personal residences they sold themselves just by chatting with someone looking at other homes in the neighborhood.

In a slow market it is a whole 'nother story.

Some agents are just listers, signing homeowners up, listing the property in MLS and collecting half the commission when another broker brings in a buyer. That is why the el cheapo listers became popular. Why pay an agent so much for so little? Now if a listing agent lists, otherwise advertises, holds open houses and so on where they actually earn their commission use one of them, especially in a sluggish market, as they will earn their compensation.

Price it right! Thats the most important thing. It’s a buyers market now, price it for the location, lot and any unique features. A view lot with a great home sells, a regular lot sits. The inventory is high so buyers can be choosy.

Monarch Grove isn’t new. Many in the Monarch Grove/Fenney area are selling and moving to even newer. It’s a good location and as far as resales it’s desirable. You can be at Eastport in minutes. You are competing with new.

I don’t think it matters which listing agent or company as much as price. People want a deal and in this market they can get one.

Because they don't do anything other than put it in mls w/an 800 to call for showings. So much more needed to sell your home.