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Listing Commissions
Real estate brokers normally charge a commission for listing and selling your home. The rate varies, both by region and according to service level. In most areas the commission is calculated as a percentage of the sales price and rates of up to 7% on homes are not uncommon. Your listing contract will specify both the amount of the commission and the timing for when it will be paid. Like everything else in real estate, commissions are negotiable. Our commission schedule is variable. We ask 6% for homes up to $500,000 the 4% of any amount in excess of $500,000. We ask 10% for land on the same price basis. We may negotiate commissions but not at the time of the listing. Factors which may influence the rate are; length of time on the market, whether we sold your property in-house, or other special circumstances.

Discount commissions

There are agents who work the following model. They list your home for whatever you think it is worth and then begin a campaign to lower your price after 30, then 60, then 90, days go by. At that point you have what is known in our business as a "stale" listing. Everyone has seen it and regarded it's too high price and continued looking at something else. Your home eventually needs to be priced less than it should have been originally. You lose.

It wasn’t to long ago that commissions below the “going rate” for an area were all but unheard of.  These days though, there are many brokers and agents willing to list your home for less than the 6% that is typical for the area. They know the value of their service. You need to be aware though, that lower commissions are nearly always tied to lower levels of service.  Most agents willing to list your home for a bargain commission rate aren’t going to do any advertising or marketing of your home. They will probably just list it with the local MLS and put a sign in your yard, and that’s about it.  Meanwhile, a full service, full rate agent will probably spend considerable time and money to advertise and market your home – particularly to other agents in the area.  So, when considering a low commission, be sure you know exactly what you’ll be getting, and what you’ll be giving up.

Paying commissions
It’s important to understand how commissions are earned, and when they are paid.  Your specific listing agreement will spell out the details.  In general, a broker is considered to have held up his end of the bargain when he brings you a “ready, willing and able” buyer.  If the broker finds such a buyer, and you change your mind and back out of the deal at the last minute, the broker is probably going to expect you to pay the commission anyway, since he did his job.