It used to be that when a house was sold, the buyer and the seller split the cost of the real estate agent’s commission. Now, however, sellers are more likely to pick up the entire tab, and the cost of that tab is actually on the rise, with average commissions in 2010 clocking in at 5.40 percent versus 5.04 percent in 2005[1]. The shift is largely due to the fact that sellers are trying to “sweeten the deal” for their buyers, but it also has to do, says one agent, with the fact that sellers are “more appreciative” of their agents than they were in 2005 and 2006. “Sellers are very happy to pay full commissions even though they’re getting less money for their homes,” explains Coldwell Banker agent Claire Sheres. The time and marketing involved in selling a house is much more extensive in today’s market, and homeowners are willing to pay to get the results that many agents believe cannot be attained without their help. “In this market, your best friend is your real estate agent,” says another agent.
Do you think that the role of the real estate agent is more important now than it was five or six years ago?
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[1] http://www.sun-sentinel.com/business/fl-real-estate-commissions-20110914,0,5352254.story
MUCH more important! Buyers are looking for fire sale bargains and if you want your home to stand out as being worth more than the foreclosure or short sale down the street you had better have not just any realtor, but a very good one, one that knows how to market the home according to the new paradigm, syndicating the listing to multiple (and I mean MULTIPLE) websites with lots of details, professional picturesm, streaming video, and virtual tours that engage all senses. Why, even the founder of FORSALEBYOWNER.COM ended up paying a realtor AND getting more money for his house than he was able to get on his own!
I am a licensed agent in both New York AND New Jersey and have never known the commission to be split. ONLY paid by the seller!
NO!
I have been in real estate for more than 22 years. Whille the commission paid varied a little bit during the boom, here in our area (Connecticut), the sellers have always paid the full commission. Due to the market conditions right now, same as in another couple of “crunches” I have survived, sellers are more likely to pay 6% or mfore, in order to get extra marketing efforts and Dollars from their listing broker. You get what you pay for!
Realtors who can deliver the special services needed in this market environment are in demand now and will be for years to come. Sellers need access to the global market place. Buyers need Realtors to help them navigate through the intricacies of a real estate transaction, be it a regular sale, short sale or a sale from a lender. What is needed more now than ever before are professionals who can back up the brand “Realtor” and all the applicable designations with commitment, integrity and expertise.