ANSWERS: 1
  • In the U.S., for lack of a better expression, the “common ground” for the sale of residential real estate – up to and including 1 to 4 apartments is usually 6%. This is not a hard and fast “rule of thumb”. There are some offices which charge 5%. There are some “flat fee” offices. There are offices which negotiate. There isn’t any really cold, hard and fast rule. Your Q should be extended to include “AND what services should I offer for this percentage or amount?” That is a fair Q. The Seller deserves an answer. To honestly answer your Q, I can tell you what services my family renders for 6%: The property is properly listed: Rooms are measured. Questions are asked: As many topics as possible are discussed and negotiated: How the Seller wishes to sell that property; How much the Seller is asking; Comparable sales of like-properties are provided. Whether or not the Seller will consider renting the property; Whether or not there is a mortgage; Whether or not the Seller is “under the gun” [pressed for money] and a variety of other Qs. When permitted, a sign is put on the property. The property is listed in the MLS [Multiple Listing Service]. Keep the Seller (and Buyer) informed and in the loop as to what is or isn’t going on. The Seller is informed of each and every showing - and the feedback. NO ONE is kept in the dark. Each and every offer is personally presented for the Seller's acceptance, rejection AND/OR counter-offer. The Seller is NEVER given any offer over the phone or via e-mail. The Seller's interest is protected right through closing/settlement/escrow. The commission charged for only an unimproved lot or piece of land is usually 10%. The commission charged for new construction is usually 4%. Businesses, commercial, industrial and other types of properties are negotiated. As far as I know, no one in the family or any agent ever told the property owner he/she/they were responsible for the cost of any advertizing. I can tell you this: When a property is posted in the MLS, many agents won’t even consider showing those properties until and unless the commission is what the agents are expecting to be paid. They don’t have to show that property - YOUR listing. There are other properties in the same general area where your listing is located, within the same price range, which will pay the full “common ground” commission. This isn’t price fixing. It’s a fact of life. EVERYONE has bills to pay. NO ONE wants to “work for peanuts”. Thanks for asking your Q! I enjoyed answering it! VTY, Ron Berue Yes, that is my real last name! Sources: My wonderful family! In the real estate business over 34 years in Pennsylvania. THE ABSOLUTE BEST, MOST WONDERFUL real estate investment group in the world, which I was very proud to be a member of! "THE University of Hard Knocks" also known as ("a/k/a") "life's valuable lessons"

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