08/29/2024
❓️❓️❓️Some of the commonly asked questions surrounding the recent, industry wide changes taking place in Real Estate:
❓️Are your commissions going away?
A. No, the Seller's Agent and Buyer's Agent both still get commissions in a transaction. The only difference now is that each side (Buyer Agent & Selling Agent) must negotiate separately and within the offer terms.
❓️Are commissions fixed amounts?
A. No, in CA they have always been and will always be negotiable. We can charge whatever we feel our service is worth for representing you and you can negotiate with us if you feel it's too much (or in the unlikely event you feel like paying us more, you're welcome too).
❓️How much are the commissions?
A. They can vary from Broker to Broker and depend on the level and types of services offered, but typically in CA they're between 1-4% PER SIDE (meaning the Seller's Agent can get 1-4% and the Buyer's Agent can get 1-4%. Many factors determine the amount of commission you ultimately end up paying.
❓️Who sets the prices for commissions?
A. The market decides. Although amounts may differ from Broker to Broker, the industry establishes the average commission prices based on what clients have paid their respective agents. Most commonly, a Buyer Agent receives between 2-3% of the sales price and the Seller's Agent receives 2-4% (listing a home for a seller usually involves more cost and up front costs).
❓️Will my house sell if I offer zero commission?
A. Maybe but not likely, unless you are selling it directly to a non-represented buyer (which happens but is rare). Most likely if you offer zero or a less than average commission, you'll simply receive lower offer prices, thereby netting less. In short, it pays to offer more generous commissions.
❓️If I want to save money, should I use a discount Broker?
A. You're free to choose any Broker you like. However ask yourself- when you go to any discount store, is the product and/or customer service usually top notch? Or does the product/service typically match the price I'm paying? Long story short- you almost always get what you pay for.
❓️If the commissions havent changed, what has?
A. The main difference is that now in order to view a property or make an offer, the buyer is required to have a written agreement with the Buyer's Agent. Other than that, it's business as usual!
If you are confused, anxious or have an upcoming buying or selling need and looking for answers, contact us anytime for a free consultation. We represent the best of the best in the industry and are always looking to serve!
Respectfully,
Joe Smylie, Realtor
First Team Real Estate
DRE #01844159
619.621.8707
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