Tuesday, February 15, 2011

What Does A WNY Realtor Charge A Seller For Their Services?

This is question often posed by many of my WNY sellers and buyers’ which prompt me to blog about this specific question. Here is my long answer! I think a better question to ask is, what does a Realtor offer? By focusing on the commission it is a poor gauge of the quality of service. By quality of service I mean. Will that agent sit down with you and price your home to sell in this market? What is the type of marketing that agent will use? How good is the agent at negotiating the best price possible from the offers you receive? A good WNY Realtor may charge a higher commission but has the knowledge to get the best price possible for your home in this market
The real estate sales commission is a fee negotiated between the broker and the home seller.  There is no set amount, but the listing broker can charge what he/she chooses for compensation of their services.  The amount is an agreement that is written in the listing agreement.  The commission is the amount that the seller agrees to pay the listing broker upon the sale of the home.  The listing broker then uses this commission to pay other brokers to bring a buyer to purchase the home.
Each real estate agent you come into contact with has the right to charge whatever they feel is an adequate compensation for their services. There is no fixed rate. That being said the client must agree to pay whatever the agreed upon commission is. All fees are negotiable it is the basis of any agents job. There is no standard amount.
Do not base your selection on commission or the sale price alone. Your home will not sell for more than it's worth no matter who sells it, but it can sell for less if not priced, staged, marketed and negotiated correctly. With a great Western New York Realtor accomplishing these items will be a piece of cake. For a full service agency who would not only list on the MLS. But also do additional advertising. Negotiate any offers for you, schedule showings, meet inspectors, etc. . .And most importantly helps you price your home to sell in this market.
My point is that commission, while it is of course one of the considerations to hiring an agent .It should not be the main reason. The same is true in real estate as in most any service you pay for. You get what you pay for.
The best practice would be to interview a few Realtor s and then compare what they charge. Different Realtor s offer different incentives and/or services, and as many of us as there are, there are no two alike. In this way you will also get much more out of a Realtor than just what they charge.
Keep in mind normally to get a reduction in commission; you give up some service or benefit.  

There are only a few places an agent can cut commission. Here are a few
1.      The amount paid to buyer agents
2.      Marketing your home.
Cutting buyer’s agents’ commissions WILL result in fewer showings and less emphasis to sell your particular home.  Of course buyers buy the home they want, they often rely on the agent for help in that decision.
Cutting marketing will also reduce showings, which on average reduces offers and sales price.  Like everything else, more interested buyer’s equal faster sale at a higher price, it's the law of supply and demand.
Commissions should be discussed between you and the agent you are interviewing. Just because someone says a commission is "average" or "usual" doesn't mean that's what you should pay.
The question is what is your goal? Is it to pay the least commission or is it to get the most money for your home?
While there are agents who will not show a home if the commissions are not what they want to get paid Well, I for one would show the homes that are right for MY BUYERS! And ethically we as agent have fiduciary and legal duty to our buyers. I hope this post has answered some of the question about what WNY Realtors   Charge.

If you should have any questions regarding this topic or any other real estate topic from this blog please feel free to send Mark Key a question from the Q&A Ask a Question BOX at the top of the page I promise to get back to you as soon as possible or call 716-603-8649
Mark Key
RealtyUSA.com
Cheektowaga New York 14225
716-603-8649
And Remember Every Home Needs A Key

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