Jan. 1, 2006 - What is the standard fee for selling my home?

When an owner decides to sell their home, they negotiate the commission with their real estate professional.

It is important for you to note that there are two completely different fees involved that are then added together and shown as a total in your Listing Contract. It is assumed that there will be two agents involved in each transaction, one who represents the Seller (you) and the other who represents the Buyer.

While there is no "standard" fee, this second fee which is also called "the MLS offering" could be just as important to selling your house quickly and at a high price as pricing your home or getting it staged.  Ask your Real Estate Professional to show you all of the properties nearby that sold well and look at the MLS offering on those properties.  This will give you an idea of what fee works to produce an abundance of ready, willing and able buyers in your specific marketplace.

Supply and Demand factors should also be considered.  If your property will be the BEST or ONLY "game in town", you might be able to offer less than the "going rate" in your area.  Once you come up with that figure, it is generally recommended that you then double that figure to insure that you, the Seller, get equal representation to that of the Buyer.  The Listing Agent represents the Seller and the Buyer Agent represents the Buyer.  Both fees are set by you, so be sure to allow adequately for your own representation during negotiations between the buyer and the seller.

Most agents will offer anything from a flat fee for listing the property up to 3%.  Most common is 2%.  The flat fee is generally a limited service for a limited time, and amount depends on the sale price.  If you are buying and selling at the same time and with the same agent, there is even more room for negotiating the fee to list your home.