The old adage that everything is negotiable is especially true world of residential real estate. The listing forms used by the multiple listing service that I belong to have four blank spaces regarding fees, allowing Realtors and their clients to fill in either a flat amount or a percentage of the sales price as the total commission paid and also how the brokerage will split the total commission with brokers who represent the buyer(s).
In the good ‘ole days, commissions were almost universally six percent, split 3% to both the listing side and the selling side. There are still 6% percent listings, but often brokers will offer a 5% listing. At 2.5% cooperating brokers may grouse and complain, but they will do what they do best – find a buyer for that home.
Recently, I showed and even wrote an offer on a 4% listing. The home showed well and was in super “hot” neighborhood where homes sell in a couple of days to two weeks, and typically at full price. This home had been on the market for over three months and had a price reduction. Did the listing broker do well by the their client? I’ll let you be the judge.
Olympia Real Estate Blog 