Reasonable Commission Explained
Fair and Reasonable: I believe Portland real estate agent commissions should be fair and reasonable. Though I have become increasingly successful over the years, reaching Top 5% in the country, I have maintained a reasonable commission rate of 4.5% to 2% as a listing agent, typically only charging 2% for my services. As a buyer’s agent, I typically do not charge the buyer.
I provide more services than a 6 or 7% Portland Agent.
See: Listing Agent Package
See: Buyer’s Team Services
Buyer’s Agent Commission Explained
If we work as your buyer’s agent, we will accept what the seller offers through the local MLS, RMLS. We do not charge our buyer clients! Only in a very rare case when a buyer wants to buy a FSBO (for sale by owner) and the for sale by owner does not want to pay the buyer’s agent (we always ask first) then we charge our buyer the 2.5% rate (as long as the buyer still wants our representation). This is a very rare circumstance.
Listing Agent Commission Explained
Typical Listing Agent Commission
The 6% listing agent will typically give 2% to 2.7% commission to the buying agent and keeps 4% to 3.3% commission for themselves.
Our Maximum Commission (4.5%)
As a listing agent specialist, I keep only 2% and offer 2.5% commission to the buying agent. If a listing agent does not offer 2.5% to a buying agent it is unlikely the buying agent will show the listing, even though it is illegal to discriminate based on offered commission. The vast majority of the time in the Portland, Oregon area the buyers agent is offered 2.5% commission.
Team Discount (4.25%) Most buyers do not want to work with the listing agent and want a buyer’s agent to represent them in the sale. So if we get a buyer lead and they don’t want to work with me, I assign them to my buyer’s agent Kami Price. If she sells it, the total commission charge is 4.25%, an additional discount of .25%.
Dual Representation Discount (3%)
Now if a buyer reaches out to me and doesn’t mind using the listing agent to represent them (both sides) the total is 3%. I only do this with the seller’s permission.
Cancel Anytime for No Charge
Yes, it is true. Anytime during our listing period the seller can give us 24 hour notice to cancel the listing agreement and they will not be charged. After the 24 hour notice expires, the seller can sell it themselves or hire a different real estate agent with no strings attached (this is not typical in our industry). The only time the seller cannot cancel is when we are in active contract with a buyer. We believe in fair and easy contracts that don’t lock the seller in.
How can I charge 2% for myself and provide more services and marketing than a full price agent?
If I save money, you save money. If my team member sells it, you get a discount. If I represent both sides you get a big discount. In the very rare case when the buyer self represents the total charge is 2%. Secondly, we sell a lot of homes. A lot. We make it up in volume while still being able to provide excellent full service and marketing that has earned us hundreds of positive reviews and multiple customer service and sales awards. Finally, I believe our commission rate is fair and reasonable.
Stephen FitzMaurice, Realtor
Top 5% Agent in the U.S.
Portland Area Real Estate Agent Since 2003