Going rate for realtor fees negotiable?

[DiscoChick]

Quick question are realtor fees negotiable?

 

[housingrental]

Yes

 

[ChrisDavies]

Always, but it's a discussion and lots of people don't realize all the work and costs in selling a property. It's also a good question to compare a couple agents and see who is likely to get you more money for your property and/or be better able to handle the roadbumps which can result in reductions after an offer is made.



Most of the time you don't pay for an Agent's services when buying. Then again if you're looking for something out of the ordinary, want a specific property, help negotiating a FSBO or buying a mere posting (e.g. comfree on MLS) you'll likely have to pay.



We do dedicated buyer brokerage for Edmonton multi-family properties and the fees for that service are several thousand dollars.



Then again, it's always a discussion.

 

[DiscoChick]

Ok, sounds reasonable I did ask a couple realtors and both said 7% is the going rate; I didn't really question because they helped me with prior purchases, but I had to know if the rates were indeed non negotiable. I looked at the FSBO option as it seems cheaper however I don't know how it would work if a buyer comes with a realtor, the buyer doesn't have to pay the realtor so to be fair the FSBO seller should pay the realtor since they brought the buyer, but if I was the realtor I'd feel weird about being paid by the seller when I represent the buyer. I'll call around, at least now I know I won't be out of line if I ask for better fees, thanks

 

[BHoward]

There are typical realtor fees - which vary greatly in markets around North America ... But no standard fees. Fees are negotiable. Price Fixing is illegal for Realtors.

 

[Thomas Beyer]

[quote user=DiscoChick]Quick question are realtor fees negotiable?
Yes they are, although most competent realtors will tell you that their fee is pretty firm, around X% on the first $100,000 and then Y % on anything above $100,000, with X being around 5-7% and Y being around 3%.



So if the house is $300,000 expect to pay around $12,000 (6k plus 6k).



Lower % for very large properties, say $1M plus .



If you feed peanuts you get monkeys !

 

[TodorYordanov]

One thing to keep in mind is the potential to lose (not make ) quite a bit of money by working with the wrong realtor. This alone can cost you thousands in unrealized profits at sale.



A good realtor will:

Be an expert in the area where the property is located.

List the property at the right price with the right strategy

Market the property to external and internal clients

Negotiate on your behalf

Advise you with the best outcome for you in mind

And much more



At the end you will end up with the best possible sale for that particular time. Or very close to it.



In Ontario 5% seems to be the going rate from what I know.

 

[Kjeck]

You should be also aware that some agents have more flexibility to negotiate their commission than others. Sometimes firms may set up a minimum they require their agents to hold out for. Thus, they are less likely to negotiate.