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%.
I provide more services than a 6 or 7% Portland Agent.
See: Listing Agent Package
See: Buyer’s Agent Package
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. As a listing agent specialist, I keep only 2% and offer 2.5% commission to the buying agent.
Typical Buyer’s Agent Commission: 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. Most of my clients list with me for a total of 4.5%, 2% for myself and 2.5% for the buyer’s agent. If there is not a buyer’s agent on the deal and I represent the seller and the buyer, the total commission cost is 3%.
In rare cases, the total commission is 2%. If the seller has a buyer for me, before I spend any money to market their home (see my powerful listing package here) then as their listing agent I only charge 2% commission to represent both sides to close. An example of this situation is a tenant that wants to buy a home from their landlord, or a seller who simply knows someone who wants to buy their house, but prefers the safety of using a top real estate agent to negotiate the deal and represent both parties through escrow. There is one other situation where the total commission is 2%. If we are on the market and the buyer self represents and I only represent the seller, then the total charge is 2%. An example of this is a lawyer who refuses anyone’s representation and decides to represent themselves.
What is the point of offering 4.5% to 2% commission? If I save money, you save money. If I don’t have to pay a buyer’s agent, you get a serious discount. If I don’t have to spend money to market your home with my extensive marketing program, you save money. Finally, I believe it is a fair and reasonable rate for excellent service and top notch marketing.
Stephen FitzMaurice, Realtor
Top 5% Agent in the U.S.
Portland Area Real Estate Agent Since 2003.