COMMISSION RATES
CBGundaker's fee is 7%. Commissions are negotiable.
Rates charged may vary from agent to agent.
Below are Commission Rates for Steve's clients.
Under $130,000 – 7% $130,000 to $190,000 – 6.5% Over $190,000 – 6% + $350
Minimum commission is $3500 for homes under $50,000
For properties over $500,000 - 5.5% or 5% + $350
Based on research
conducted by the National Association of Realtors and published
in the New York Times on Jan 5, 2005, using a Realtor nets you 16% higher
than selling By Owner. So hiring a Realtor for 6% to 7% is a good
investment. A Realtor with a large company utilizing their
advertising dollars and resources, will get your home market exposure a
hundred-fold more that what you could do on your own, thus resulting in a quicker sale. Realtors provide an important service to the community. Consider a seller transferring out of state who has a $1200 payment on their current home. If a
Realtor sold the home 4 months sooner than the by-owner, $4800 in payments would be saved for the transferee who had already moved out of
town.
CBGundaker's commission is 7%. This is negotiable. Lower than 6% is allowed for properties over $500,000. At 6% or lower, a $350 fee is additionally charged. Finding a Realtor who charges the lowest commission, does NOT
necessarily net you more money. An experience agent who is a skilled negotiator may be able to get $1000 higher sale price, or may have a large list of skilled but reasonable repair contractors that may save you a few hundred dollars. I once had 2 roofing companies where there was a $1200 difference in bids.
IMPORTANT - We get top dollar when offers are received shortly after going up for sale. Offers will be closer to list price in the first 1 to 6 weeks and are always much lower for a property on the market for 3 or more months. Offering competitive or a better buyer commission is a marketing strategy. It assures us more
showings resulting in a quicker sale and thus a higher sale price. For a home that is not selling, a typical price reduction is $3000 to $5000. Paying full commission helps to get offers before having to reduce making it not worth the $350 to $800 saved by choosing a competing Realtor offering a discounted commission to get your business - this Realtor often ends up netting you much less than the commission saved. 91% of buyers start their home search on-line, but eventually choose an agent who plays a very important role in which home a buyer ends up making an offer on.
BUYER PAYOUT: I follow the traditional payout to your buyer's agent, which is 45% of the total commission: 7% = 3.15%.... 6.5% = 2.925%.... 6% = 2.7% commission payout to the buyer side of the transaction. CBGundaker's Listing Agreement states in writing the payout that will be advertised to buyer agents. Beware of a competing Realtor that takes your Listing at 7% or 6.5% and only offers the buyer's agent a 2.7% payout. This practice increases the commission your listing agent gets while you lose the benefit that a better buyer agent payout provides. If interviewing with a competing company, be sure to ask what their advertised buyer payout will be.
I'm typically firm on rates listed above. A fair business practice is to charge all
sellers similarly. If not agreeable to the above commissions, consider calling me before scheduling an interview. I am often one of the Top 10 Listing agents in my immediate market area. From 2014 to 2017 I've taken 110 Listings - only 10 did not sell. Most that didn't sell did not follow pricing recommendations. Consider asking a competing agent for their track record. My marketing strategy and offered commission rates get my listings sold.
For properties under $130,000 - the rate would be our full commission rate of 7%. On lower priced homes, a commission reduction does not provide significant savings, especially at 6% as a $350 fee is added. Below shows what savings would be if a lower commission rate was accepted. All examples below take into account the $350 fee that is additionally charged on reduced commissions:
Under $130,000............. Standard commission rate = 7% Commission
From 7% to 6.5% From 7% to 6%
$75,000 sale price......... $375 less $400 less This shows how much would be saved at less than 7%
$100,000 sale price....... $500 less $650 less Experienced agents often net you more than $$ saved
$125,000 sale price....... $625 less $900 less
Before choosing a Realtor based on lower commission, ask for their sales record and review their Sold listings.
Were quality photos taken? Was a Virtual Tour provided to increase showings? How long did it take to sell?
Over $130,000............... Reduced commission offered! 1/2 % Lower
From 7% to 6.5%
$150,000 sale price....... $750 saved 6% would only save an additional $400
$180,000 sale price....... $900 saved 6% would only save an additional $550
Over $190,000............... Reduced commission offered! 1 % Lower (plus $350)
From 7% to 6.5% From 7% to 6%
$200,000 sale price....... $1000 saved $1650 saved
$250,000 sale price....... $1250 saved $2150 saved
$300,000 sale price....... $1500 saved $2650 saved
$400,000 sale price....... $2000 saved $3650 saved
Over $500,000............... Reduced commission offered! 2 % Lower (plus $350)
From 7% to 5.5% From 7% to 5%
$500,000 sale price....... $7150 saved $9650 saved
$750,000 sale price..... $10900 saved $14650 saved
Selling your home using a Realtor nets you 16% higher than selling For Sale By Owner.
