Sellers Save 40%-60% on fees

When you list with me, most often, the listing side of the commission is 1%. I am able to charge a lower Listing agent commission primarily because my broker does not maintain a brick and mortar office and thus my fees to him are greatly diminished. So if you choose a 2% commission, we will be offering 1% to other realtors who may have buyer's to bring in to your home. Other agents in town have greater overhead and so when they see a property listed on the MLS offering a lower co-op commission, there is less of an incentive for them to bring a buyer to your home. So especially in lower price ranges, in order to compete with the other listing on the MLS, I usually recommend that my clients offer at least a 2.5% to 3% co-op commission (although as in all matters with Real Estate, Commission is fully negotiable) So the minimum commission that I recommend when you sign a listing agreement with me is 3.5% (1% + 2.5% = 3.5%). Now, if I am the realtor who ultimately brings the buyer for your home, I will reduce the commission from 3.5% or 4% to 3%. And if you are buying your next home with me as your buyer's agent and I bring the buyer to your home, I will reduce the commission on the sale of your home to 2%.

As for what commission to offer other realtors who are working with buyers... The lower the co-op commission that you chose to offer, the fewer agents in the area that will be working for you. Now I will work just as hard and advertise just as much and hold just as many Open Houses. But other agents may be less likely to show your property. Granted, today’s homebuyer is much more independent than in years past. Many float from agent to agent calling the listing agent of any property they may be interested in to schedule showing (by the way, for buyers this can be a time consuming and potentially risky way of home shopping. Call and ask about Agency laws and procuring cause for an explanation). However, through Home Buyer’s guides and especially the Internet, even buyers who are working with an agent will come across listings other than those their agent brings to their attention. If a buyer tells his or her agent, “Hey, I’d like to see 123 Main Street.” No agent is going to say, “No, I wont show you that house because they aren’t offering me enough money.”

However, if you are pressed for time, it may be a wise chose to pay the 2% commission and lower the asking price for your home. This could creat a "Fire Sale" mentality and result in a quick sale of your home. Possibly, you could still walk away with the same amount of equity as you would at a full list price and paying a 6% commission to most other agents.

If you have further questions about how Real Estate commissions work and how WebMLS can save you time and money, feel free to call or e-mail me. My contact information is available on this web site.

Thank you,

Doug Finney

Closing Costs to Expect:

• Title insurance fees- Buyers may pay a title insurance fee. This depends on your lender, your needs and on the sales price of the home.
• Commission- Most often sellers pay the commission to compensate both the seller's agent and the buyer's agent. It is a full-service fee and the standard cost in the local market is anywhere between 5% to 7%. With WebMLS, sellers pay between 2% and 5%.
• Local property transfer tax, country transfer tax, state transfer tax, and state capital gains tax are the charges that you'll pay for the privilege of selling your home. Credit to the buyer of unpaid real estate taxes for the prior or current year are variable and depend on when you close and when your taxes are due.
• Closing Costs- Seller's standard closing costs typically run between $200 and $250. In almost all cases, the seller pays these fees. Buyer's closing costs can range between $1500 and $5000 or more. These are largely dependant on your lender and your credit score. As with all things in real estate, these fees are negotiable and while generally are paid by the buyer, buyers may request that the seller help with these fees. Sometimes, when buyer's are "financing" their closing costs. The offer will be increased by the amount of the closing costs and then returned to the buyer to pay those fees. Example: a home sales for $100,000. The offer is written for $103,000 with they seller paying $3000 in closing costs.
• FHA fees and costs- the standard FHA contract will ask the seller to contribute 3% of the sales price toward buyer's closing fees. 
• Home inspections fees- Occasionally a home buyer will ask the seller to pay for part or all of their home inspection fees.
• Home Warranty- A home warranty will insure the buyer that they will not have any surprise expenses over the first year of home ownership. Standard warranties cover the mechanical systems of a home (electric, plumbing, heating, A/C) and most appliances that are sold with the home. Most often the buyer is covered for one year after closing. If enrolled at the time of listing, the seller is covered for most of the same systems throughout the listing period. We use 2-10 Home Warranty which costs $399. Even though the seller is covered through the listing period, the warranty is not paid for until closing. Ask how you can have a home warranty for free. 
• Miscellaneous fees can accrue from correcting problems noticed during the home inspection. 

Find out how much your closing costs could be.

Please include the words "Closing Costs" in the Comments section of the following form.

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