Questions to ask about commission when listing a home for sale

When sellers are preparing to list their home for sale, listing commission they will pay is often one of their top concerns. Commissions are negotiable, but sometimes a discounted commission can work to your disadvantage.Sold10

  • Keep in mind that the total listing commission is split among the listing agent, listing broker, selling agenr (buyer's agent) and selling broker
  • As for details about services included 
    • What kind of marketing pieces are included?
    • Does it includes the services of a professional stager?
    • Does it include a photo session with a professional photographer?
    • What about a video tour? 
    • Domain name for your house such as…
    • What is included in your online listing?
    • How is it being marketed beyond the MLS?
    • Etc, etc, etc…
  • Be sure to ask about the commission being offered the buyer's agent
    • If the discounted commission results in a commission for the buyer's agent that is lower than the going rate, it could work to your disadvantage
    • For example, I did a search for the competition of a property
      • Of 28 comparable active listings, 22 were listed at the typical Buyer's agent rate… 6 were listed higher than average… and 2 were listed with commissions below average
    • A commission below average can influence agents to steer away from showing your listing, especially if there are plenty other comparable properties to choose from
    • A commission below what is in the buyer's representation contract could even mean the buyer would have to make up the difference

Be sure you understand the whole picture before getting too excited about a low commission. Sometimes a lower commission means fewer services and an undesireable buyer's agent commission. The old adage, "you get what you pay for" may have a ring of truth.

 Sharlene Hensrud, RE/MAX Results – EmailMinneapolis-St. Paul Realtor


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I love what I do! Highly insightful, analytical and creative, there is nothing I love more than helping you find the right solution for your real estate transition. My mission is to serve my clients with honesty and integrity, exceeding their expectations in service and support… and to help others by donating a portion of every transaction to Habitat for Humanity.

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