Most will work with sellers and charge a 4% TOTAL LISTING PLAN. Typical commissions charged in Boston area are 5% with the listing agent receiving 2.5% and the buyer’s agent receiving 2.5%. With a 4% LISTING PLAN, an agent will offer the buyer’s agent a 2% commission and will reduce his/her listing commission to 2%. To me this is a win win situation for sellers! This commission split will ensure that Realtors will show your home along with any others that suit their buyers needs. Some agents will shun a home that offers a 2% commission split in favor of homes that are offering the typical 2.5% commission.
Why would a real estate agent reduce commission you may ask?
Here is my philosophy. Marketing to find people who are looking to sell their home is very expensive as well as time consuming. Marketing costs to acquire listings can run upwards of thousands of dollars per month. Other avenues are Park Benches and Billboard advertisement. There is an old adage that “time is money” and that is very true in the Real Estate business. While other agents are out knocking on doors, calling EXPIRED LISTINGS or FOR SALE BY OWNERS I am servicing my sellers. One last reason that an agent is able to offer a 4% SELLER LISTING is the fact that they have opted not to work for a large franchised Real Estate Company. These Real Estate companies can take 1/3 up to 1/2 of the commission that is made off each transaction. Luckily small companies do not charge these large FRANCHISE fees and are able to pass on that savings to the seller.