“My Broker Wants to Charge Me 6%.”


I was asked by a prospective online home seller: “My broker wants to charge me 6% to sell my home.  What is the average fee paid to a listing broker?”  The average brokerage fee (commission) for a traditional broker in my area (Sacramento, CA area) is 5%, usually split equally between buyer’s and seller’s companies. It is currently a brisk market with homes moving quickly, provided they are priced correctly from the beginning.  However, I own a company that sells for a flat fee (not percentage-based commission) while providing full service and representation, so it is more based on the labor / man-hours involved.  I don’t want to do a “commercial” here, but you might want to seek out a “set-fee” broker.  Don’t let a traditional broker tell you that they have more “expertise” or that they “can get you more money.”  I was a 6%’er for many years. I am profitable because I don’t have to split my fees with my company, so I can remain profitable while charging my sellers a low “set fee.”  I would interview both types of business models and then decide for yourself. The old adage that you “get what you pay for” is true for commodities, but not real estate brokers. Don’t let anyone try to pass that off on you. By the way, don’t take this as a slight on 6% brokers; there are many great ones who do a fantastic job. They just work under a different business model.

Best of luck to you!



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