Real Estate Fees

[Tiger]

What are the usual fees for an agent and does anybody have any experience haggling down rates?

[Slava]

I think that the usual is 7% on the first $100k and then 3% on everything thereafter?

[Winsor_Pilates]

Are you buying or selling?
If you're buying, you pay nothing.

If you're selling, haggling down rates on a good realtor is pretty hard. Calgary is a hard market to sell in right now, and you should be willing to pay a good realtor to do what they do.

[troutman]

7% and 3% normally. Sometimes I see realtors give 6% and 3%. It is all negotiable.

[pepper24]

I was able to get 5% and 2% when I sold my last place in 2007. That was also in the late stages of the bull housing market when anyone could sell (good or bad realtor) and welist.com was legit competition. My place sold in less than a week and my realtor didn't have to do much.

In today's tough market I'd probably go with an experienced realtor where you probably won't get too much haggling room. They are now worth the fees.

[pepper24]

Originally Posted by Winsor_Pilates

If you're buying, you pay nothing.

True, you don't have to pay your realtor but you indirectly pay the fees in the purchase price.

[Ice]

I managed to negotiate down to 5%, with my listing agent taking 2% and the buyers agent getting 3%. If the buyer's agent is going to get less than 3% he/she may not bother going to your house, so my agent made it clear in the MLS he was taking the pay cut. I also negotiated a lower percentage if my listing agent finds the buyer.

What I agreed to is him setting the price a little under market and a reduction if my house wasn't sold in a month. It wasn't and I reduced. I figured going in we wouldn't be sold in a month and the price would drop. But the savings on commission more than makes up for it.

Its a win/win situation for both of us. I know its hard for realtors to sell homes when the buyers refuse to acknowledge the real current value of their house. The agent only makes money if it sells, so what he loses in commission, he potentially gains in a quicker sale and a reasonable client.

[Nabber]

The usual like others mention is 7% on the first $100,000 + 3% on everything over and above. Split between the realtor who is selling the property and the realtor who brings the buyer to the sale.

I'm sure you'd be able to negotiate some realtors but I'd be wary if one gives up too much, as like others have mentioned it's a hard time to sell and the more money lowered off the commission the less that realtor has for advertising. As well be careful if a realtor lowers his rates down to 5% on the first $100,000 that he isn't cuting the buyers rate as that will just turn many realtors off showing your home. If there are any reductions off the real estate commission they must come off the sellers side, you never want to go lower than the 3.5% first $100,0000 + 1.5% on balance that is offered to buying realtors, especially in this market.

What I usually do for friends, family members, CP member is give them the choice, I'll save them 1% ($1,000) off the selling side of course or the standard commission 7/3 and offer a $1,000 dollar bonus to the buying realtors, which is a great marketing tool in a slower market.