Standard Realtor's commission percentage in San Francisco
A reader asks:How much of a percentage do Realtors normally charge as commission in San Francisco?
Our reply:
Commissions are negiotiable and the is no "normal" rate. In today's open market there are any number of choices for a seller.
There are those who have a nominal flat fee and only put the property in the MLS but do not help the seller negiotiate or find a qualified buyer. However, as in most businesses, "you get what you pay for".
If you want to receive the most "net" from the sale of your property a good, experienced Realtor can be worth much more than the commission they earn. For example, in a survey by the National Association of Realtors it was discovered that For Sale by Owners receive 16% less than owners who used a Realtor. So with a 6% commission paid to the agent, the seller would still be ahead by 10%! And if that agent was a skilled negiotiator the seller could be ahead even more.
Experience is so important in any market but in a changing market it can mean the difference between selling the property or having it sit on the market losing value. Although do not believe in a gloom and doom scenario, the San Francisco Real Estate market has begun to change. (Refer to our previous article on June 16, 2006. We also publish a weekly report of market conditions from Avram Goldman, President of Coldwell Banker, San Francisco Bay Area on our website.) Choosing the right broker can not only make the process easier but also more profitable for the seller.
If a selling agent looks in the MLS they will observe that the "cooperative selling commission" is between 2.5-3%. The commission paid to the listing broker is normally the same amount but it does vary depending on the agreement between the listing broker and the seller.
- Janis Stone
posted by SFResidence.com @ 8:49 AM
1 Comments:
You may also want to note that in the same survey you reference they indicated that many of these properties are sold between friends and family which is purposely discounted. Lastly, the stat is based on the "median" sales price not the "net" to the seller. The median is a statisical average than can be skewed dramatically with just 2-3 sales in the millions.
Post a Comment
<< Home