[QUOTE]Originally posted by TrojanHorse
The % varies by state.

 

I stand corrected. I did some web research on the 5% buy and sell sides my father-in-law told me and it appears he was wrong. They seem to have 3% each way also. I bring this up because I am abou to go into escrow on 10 acres in southern Washington. Since I am buying I am unaware of the fee's as the seller will be paying them all anyways.

 

Whatcha gonna do with all that land?

 

Build a huge compound behind gates so I don't have to socialize with anyone. Lotsa room for a huge garage and shop for the go-kart trailer and other toys. Lotsa very old and big cedar trees on it (200+ feet tall) and 2 creeks. Not a neighbor anywhere to be seen and it is the last lot on a little country road. After these years in LA I am tired of having neighbors all around me. Despite being hermit-like it is only 23 miles from downtown Portland, OR for the fun city stuff.

 

Contact your attorney and or tax advisor for any and all concerns. It is my opionion that commissions for buying or selling Real Estate are always NEGOTIABLE and never ever ever fixed or set or customary. An agent can say he or she will work for a certain % and then it's up to the principle to decide if they want to hire that agent or shop for a better deal. A better deal may not be what it apprears. You have to take all the services into account. You usually get what you pay for but this applies to most services. This applies to listing a property for sale or hiring a Buyer's agent. To imply that rates are "normal, customary, nonnegotiable or fixed" would be a violation of Antitrust law. If any licensed person tells you or implies the contrary, they are seriously in danger of disciplinary action from the Commissioner of Real Estate. We as agents have been told to walk out of a room or take serious note and have witnesses to any such statements. It is that serious of an issue. I have taken many exclusive right to sell deals where my office is the only office that works on a listing but any agent can work on it for a percentage of what my principle agreed to pay. If I take a 1-3% exclusive right to sell listing and another agent sees and brings in an offer, I still have an obligation to notify and present the offer to my seller. Regardless of the commission. The seller can accept, refuse or counter the offer. It's up to the seller and not the agent. An agent must always act in the best interest of his or her principle. Always regardless of commission. An agent can work for nothing and still be 100% responsible and liable for his or her actions.

 

[QUOTE]Originally posted by TrojanHorse
Build a huge compound behind gates so I don't have to socialize with anyone.

 

Being "customary" is quite different from being "fixed". The former cannot lead to charges of price fixing or collusion, the latter can.

While it's true that commission rates are negotiable, you have to find someone who's willing to negotiate and who's willing to work just as hard if you pay a lower fee. Most agents simply won't do either.

 

currently, state laws govern real estate commission. (in ohio, the maximum realtor fee on a residential transaction is 7%, which includes listing and selling agent) soon, however, thanks to laws like HOEPA (homeowner's equity protection act) commissions by both mortgage brokers, realtors and title insurance agents will be capped.

when selling your home:

1. Try and do it yourself
2. If you need an agent, don't pay more than 5% commission


when buying your home:

1. do not pay a realtor (not even the $150 service fee)
2. use a mortgage broker, not a bank (you will find that your total cost of money is substantially less even with higher closing costs)

 

thanks for all the info