How much real estate commission should I pay
The question is as old as the real estate business itself and the answer should always be; it’s negotiable. Real estate is a business and the cost of real estate services cannot be set in stone. It’s against the law. What a seller really needs to ask is, who is going to be best able to help me meet my goals? Commissions are certainly an important part of the relationship but when it comes to meeting your goals it probably isn’t the most important factor.
In Jupiter, Florida more people have been paying less for real estate commissions than at any point in history. The reality is without looking at every closing statement, for every transaction, it is impossible to tell exactly what a seller pays in total commission but we can look at the information available and make educated assumptions. For this article we are going to assume that the co-brokerage commission offered through the Multiple Listing Service is half of the total commission paid by the seller. So if a 3% commission is offered to the buyers agent we would assume the total commission paid is 6%.
Most people hear that 6% is the “going rate” but that is far from the truth in Jupiter. The fact is if you are selling a single family home in Jupiter Florida and agree to pay a 6% commission you are paying more than most sellers. Through June 1st of this year we would have to go back a long, long time to find a month where more home sellers paid 6% than those who paid 5%. Way back to April of last year. Each and every month, for the past 13 months more single family home sellers in Jupiter paid 5% total commission than 6%. The funny thing is, it hasn’t been a close contest over that time with 57.2% of home sellers paying 5% and 42.8% paying 6%.
So if somebody tells you that 6% is the “going rate” you know they are full of hot air. Paradise Sharks wants our clients to not only be fully educated, we want them to get the highest level of service and the best value available in our market. We aren’t the firm for everyone and there are clients where we are not a good fit. However, one thing we do know is we will never charge our clients a commission above 5% and in many cases can do much better. It depends on a number of factors and always revolves around making sure we are gearing our services around our clients needs. Not ours.
If you are thinking about selling a property you should interview at least 3 brokerages and learn what they are going to do to help you meet your goals. Part of that equation is the fees you will pay but again that truly isn’t the most important factor. If your property is in Palm Beach County, or Martin County, Paradise Sharks would LOVE to be included on the list of brokerages you interview. We will always gear our services to meeting your goals and we might just surprise you with a commission you never would have thought possible. You can schedule an appointment with us anytime at 561.308.0175 or email@example.com