Real estate brokers fee

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im here!

Mon, Sep 07 2015, 11:32 am

Any1 know what's the average a real estate broker charges?

celesteno

Mon, Sep 07 2015, 11:53 am

Typically 3-6%

Amarante

Mon, Sep 07 2015, 11:56 am

Generally it's 6% paid by the seller. It can be negotiated down to 5% depending on the market and the broker.

It's split between seller and buyer's brokers.FWIW, I have been told by brokers that they are less enthusiastic about showing their buyers. Listing on which they will earn less but of course that is dependent on the market.

im here!

Mon, Sep 07 2015, 12:00 pm

3-6% is what the seller pays? How much does the buyer pay generally?

STovah

Mon, Sep 07 2015, 12:15 pm

im here! wrote:

3-6% is what the seller pays? How much does the buyer pay generally?

The buyer does not pay the broker for a sales commission. A rental commission on the other hand is generally paid by the renter, not the landlord.

im here!

Mon, Sep 07 2015, 12:25 pm

STovah wrote:

The buyer does not pay the broker for a sales commission. A rental commission on the other hand is generally paid by the renter, not the landlord.

Only seller pays?

Amarante

Mon, Sep 07 2015, 12:33 pm

im here! wrote:

Only seller pays?

The seller signs a contract with the broker in which the fee is specified. The buyers broker is paid half of that fee at the closing but the amount is paid in full by the seller. Generally out of equity but if there is no equity the seller would have to pap the fee in full.

If you want to get literal, the n buyer is paying something since theoretically the sales price could be lowered if there was no brokers fee.

The seller has plenty of money they need for closing but they don't dirctly pay the broker.

shoshanim999

Mon, Sep 07 2015, 1:10 pm

It's usually 4% paid by the seller. It can often be negotiated to 3.5% or even 3%. Think about it, in Brooklyn, an "average" house is 750k. 4% is $30,000. Frankly, thats a lot of $$$ if the house sells after a few showings. Imagine a broker shows the house 10 times at 20 minutes each showing and earns $30,000! That would work out to a little less than $10.000 per hour. I realize the broker has to split the commission with the brokerage and there is other business and time involved but it still is a lot of money,

Amarante

Mon, Sep 07 2015, 1:16 pm

NYC has very unique real estate transactions since everyone (at least in my experience) uses a real estate attorney. In other areas, no one uses an attorney and it is all handled by the brokers since they are all form agreements.

When my parents sold their house in Midwood, they didn't need a broker because as soon as neighbors heard they were moving, there were many inquiries. The attorney handled all the paperwork.

But in Los Angeles, where I am the brokers charge 6% and no one uses an attorney.

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