In some ways brokerage commissions for sellers have changed over the years, the standard 6% might be somewhat negotiable. But NOT the Buyer Agent side of the commission, normally 3% (50/50 of the 6%). This seems to be taboo when it comes to talking about that.
Are Buyer Agent Commissions too high one might ask…? Is a $9000 (3%) commission too much for a buyer’s agent to sell a $300,000 house? Most consumers would say YES. Many buyers have seen their agent show them one or two homes to make a sale and never see them again until closing and see that they are getting a $9000 commission. Many, possibly most might feel that commission to be too much as they believe they really paid that commission in the price of the home.
Many Brokers across the country feel the same and are offering rebates or refunds back to their buyers. The DOJ (US Department of Justice) considers this to be fair competition with commissions, allowing for negotiations of commissions with Sellers as well as the Buyer.
Kansas and Missouri by the statues of license law does not allow this. The DOJ calls out the ten states that don't allow rebates or refunds to the Buyer.
Many Sellers ask about offering a lower commission to the Buyer’s Agent as they feel that it is too much but most Brokers will not allow that. But, 395 Realty however, has decided to approach this from a different angle... let the seller decide what commission they want to offer a Buyer's Agent. And, most sellers do in fact take advantage of this option, as they also believe that in most cases a $9000 commission is too much money to sell most homes. They instead offer anything from a FLAT selling commission of $1495 to 1% or 2% depending on the price of the home. A Seller might even want to consider NOT offering any commission and just making the commission negotiable based on what the Buyer’s offer.
395 Realty is a flat-fee, full-service Real Estate agency that’s main focus is you, the client. Your needs and wants are top priority to each of our professional agents. Establishing a formal agency relationship will enable us to represent your best interests. Providing material facts as well as professional advice, price counseling based on professional insight is our promise to you. For more information visit http://395realty.com