Is a 6% real estate commission with 4% to selling agency plus a $5,000 bonus to selling agent a good plan?

[Jonnie L]

My house is super upgraded and in sparkling condition on a large lot with a great view. Only negative is the outside is an older 60's style (fab condition but not the newer "big box" style) and I need to get people inside. Of the 25 houses that have sold in my zip code in the last 4 months only 3 are near the price I will be asking. I don't think open houses with a lot of unqualifed lookie-loos is productive. Is an "agents only" open house a good idea?
The larger commission to the selling agency plus the extra bonus to the selling agent is my idea because the market here is Southern California has stabilized so there are more properties for sale. I wanted to know what someone else thought of it before I suggest it to an agency. The house will be in the $725-750 range so the total commision I pay is a lot, but I thought it may generate interest for the agents. I have had a couple of agents look at the property and they suggested the price which is at the higher end, but the property is extra nice. I have offered a "pocket listing" (bring a buyer and I will pay 4%) to some, but it appears they are more interested in listing than finding buyers. At 2% to listing agency I would not expect open houses or marketing. Just a couple of agents open houses and MLS.

[cookiedada]

The commision plan is good for the selling agent.
A n assosiate of the selling agency will try tosell so he gets abetter piece of the pie..

But the guy tell you that your price has to be salable .

[brainiac]

it sounds like the selling agent is getting too much
how much is the approx selling price?
I think the total comission you should pay as the person selling the house is around 16k
usually 8 for buying agent and 8 for seller.

what is the bonus for???

offering the buyers agent only 2% is cheap
if there is another house that is being sold and is similar, but that deal gives them 2.5% then they will be pushing harder for their client to buy the other house (not yours)

this is NOT the situation you want.

what I did with my agent is said I will give you 10% of the amount over a price i picked that was the minimum, just to him.
that way I know he is doing his best to get a good price.

the real estate agent you are considering to sell your house sounds REALLY shady! the 5k bonus stinks!

go find another that will give you a better deal
after what he tried to pull I wouldnt trust him even if he offers to match the deal from a legit agent.
he got greedy and shouldnt get anything.

he also sounds like an amatuer.
in a realtor only open house they all look and discuss what it should priced at and any changes that should be made. it is in all their interest to sell your house for a good price. if he doesnt do this then how can he say for sure what the price should be?

[Greggath]

Your real estate agent should help you with some of these questions unless you are selling your self. An "Agents only" open house is called a realtor review and is a good idea int he right location (usually urban), otherwise it doesn't make sense.

I'm not sure on the commision structure you are refering to. A high commision will make relators more eager to sell the home, but you have to pay more. Best to start with a lower commision and up it later if need be. You should be able to get a 5% commision easily enough.

Just be aware that your listing agent will put your house up for sale and do some marketing, but its the buyers agent that really "sells" your home, so don't go crazy on commision. You can also negotiate and "listing fees" (I wouldn't pay any) and the length of the contract with your agent (stick to three months if you can, that way you can get someone else if they don't do well)

Good luck

[kalamidad]

No Need to pay more than the standard 6% commission to listing agent. As it's they are getting their fair share. Make sure you sign the shortest possible sale contract...and if that agent is not putting out an honest effort...get a new agent. Find a good experienced, professional, motivated agent...NO NEED FOR THE ADDITIONAL COMMISSION. Good luck.

[thetoothfairyiscreepy]

that sounds EXTREMELY generous of you!

agent open houses are better than public open houses, because then the nosy neighbors, etc come out, but not necessarily have an interest in buying.

i hope everything works out for you!

[emetalshop]

That is not a good idea. You should only pay a maximum of all cost and fees of 6% or less and get this in writting. There are plenty of agents that will do this for you.

I have a website loaded with advice on this issue.

[Goldenbearloan.com]

So lets sum up:

Give only 6% but have the 5000 going to buyers agent or suggest 3% of home going toward closing costs. This very marketable since homebuyers dont want to pay closing costs. Also make sure you get a virutal tour of the home. If you need a So Cal Real Estate Agent email me have couple for you.

[satarnag]

Hi,

I am a licensed Broker in Southern California. If you're in Orange County, I can list your house and conduct open houses for 1%. Then I suggest you pay 4% to the buyer's agent and I will make flyers stating that you will pay 4% to any agent who brings you a buyer. I will then distrubute these flyers to every agency in your area and my friends.

I think outside the box and won't just sit on your listing. For example, instead of lowering your listing price, I suggest you give cash back at closing. A buyer financing 20k over 30 years only pays a few dollars a month more but a buyer getting 20k cash at closing to buy furniture and/or apply to his/her downpayment is a better deal.

The key is that you have to price your property right. Becareful of agents who agree to high listing price just to get a listing then sit on it and lower it after it's been on the market for a couple of months.

If you're in Riverside or San Diego County, I will charge 2%. However, I will list your property in all three MLS locations and conduct open houses regardless of your location.

Contact me if you're interested or have any questions.

Regards

[Ren]

That is too much. Shop around. Try to get a flat fee if you can.
A company called "Help you Sell" offers a flat fee to sell your house. Don't know the axact terms. Agents are always trying to out do themselves. Again, shop around it's to your benefit.

P.S.
And if an "Agent" puts too many conditions in your "Listing Contract" they're trying to rip you off. ie..."agents only"
If you can, have a real estate attorney review the contract, it's very complicated.