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What factors affect the amount of commission you pay?

I've seen different commission rates, and I get that probably commission is based on experience. What else affects the commission rate? And is it locked in once I agree to work with an agent or can they change it?
Asked By Mark V | Newark, NJ | 671 views | Working With An Agent | 1 year ago
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Pro
91 Answers
Lisa and Greg Harris

eXp Realty, LLC

(42)

YOu are correct that commissions vary depending on many factors. Experience, the area, the type of property, the requirements it takes to sell a property. The listing agreement will have the agreed-upon commissions spelled out clearly as to what you have agreed upon for the property that you are looking to sell. Look for a professional REALTOR with expertise for what you are looking to accomplish for your property and interview them to see if they are the right fit for your goals. And sign a listing agreement with the commission spelled out based on the things listed above. (no they should not change based on the written agreement)
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Rising Star
12 Answers
Melissa Key

Woodland Realty, Inc.

(64)

Experience matters period. Hire an agent/Broker with a proven record that includes time invested in this career. I often see folks hire part-time agents and pay full commission. Do you use other part-time professionals? You would likely never consider going to a physician, dentist, CPA or attorney that was part-time yet they will hire a part-time realtor. It is rare that any Broker or Agent would negotiate their commission after the listing agreement is signed. It is a binding legal contract and should be honored as such. I hope this helps.

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Rising Star
11 Answers
Jamie Moreng

Move with Moreng @ eXp Realty LLC

(100)

Besides experience, here are the most important factors that affect commission. 1. Marketing Plan; What is the agents marketing plan? Are they taking photos with their IPhone, do they offer professional photos, videography, 3D tours, floor plans etc? Does the marketing plan include email marketing, print mailers, staging & any other strategies to help you get top dollar for the home? Typically with discounted commissions you will get discounted service and/or marketing. 2. The Local Standard: If you are a seller demanding your agent take a Listing for a total of 3% (1.5 /1.5) & the avg listing commission is let’s say 5 or 6% (2.5-3%) per side in your local market you may think twice about doing so. The average agent sells about 4 homes on average a year so think about some on who has a buyer that 1/4 of their annually income depends on your listing to get paid 1.5 instead of 2.5 or 3%. The local average usually keeps sellers honest to ensure they are offering out a good incentive to buyer’s agents to get buyers in the door. Once you have that down, the listing agent side typically comes down to how extensive you value their marketing plan. If you do sell your home after an agreed upon listing agreement with defined commissions with list & expiration date, then both parties would legally be obligated to honor those numbers in that period. The agent cannot change the commission unless agreed to in writing by the seller.
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2 Answers
Ann Byer

Coldwell Banker Metro

(1)

Commission is established when the seller comes to an agreement and a Exclusive Right to Sell is fully executed. Now of course the agent can further reduce their commission if desired but they do not have to because they are under contract for the commission agreed upon in the Exclusive right to sell.

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