Question about real estate

[RobL]

Not sure where to stick this were it won't get bogged down in spam, and I'm sure you guys know the answer anyway:

What are the standard percentages everyone gets when a house gets sold: (i.e. sellers agent gets X%, buyers gets X%, escrow gets X%, and so on). Also, are the pay offs taken off the top, or once the mortgage gets paid off?

Been looking online, but haven't found anything yet.

 

[Cranky Bastard]

Depends on the price of the home and the state.

For cheapie houses, comms can run 8%. Two agents would each take 4%. Escrows are set fees, usually amounting to less than $2,000.00.

Mortgages and liens and commissions are all paid out of escrow. So everyone gets their cut, and then you get the detritus.

Comms on higher priced homes are sometimes scaled lower. In some cases 5% and less. But we're talking million dollar homes then.

 

[RobL]

So, commisions are paid from the overall amount? Example: I'm paid $300000, but the mortgage owed is $250,000, the 8% comes out of the 300k, and not the remainder of 50k?

 

[Cranky Bastard]

The commision comes off the gross, yes.

 

[RobL]

Cool, thanks.

 

[jack]

All commissions are negotiable, just be aware of the nature of the listing. Is it an exclusive agency, a multiple agency, or an open listing? That also determines who gets paid.

 

[Cranky Bastard]

All commissions are negotiable, just be aware of the nature of the listing. Is it an exclusive agency, a multiple agency, or an open listing? That also determines who gets paid.

...and how much. Some agents are cocks and demand the full commission on their own, and then you end up paying another commission to the buyer. Usually this only occurs commercial, but it happens.

Make sure your commission with your agent is split to the buyer.

 

[DarthSikle]

While commissions are "technically" negotiable, different area's have commissions that local agents won't budge from.

My area, suburban Philly is 6%. Inside the city limits it is 7%.

If you are selling a house right now, just be happy if it gets sold. Be prepared to pay a commission and a half however to take care of both agents.