How important is it for you to sell your home?
There are different types of Realtor services available to those who are looking to sell your home. Each one has a general base commission rate that is determined by what they provide the seller to help get the property sold. But what most people don’t realize is the whole commission that is charged is normally split 4 ways.
First you have the split between what the listing broker/agent and what selling broker/agent (who brings the buyer) receives at the closing. The second split is referred to as the Broker-Agent Commission (BAC). The BAC is important as this amount attracts the agents with buyers to your property. A lower BAC could make a difference in a sale as an agent may guide a buyer to a similar listing with a higher BAC. So a home with a 3.5 BAC will be considered more often than homes with 2.5 or even 3.0. We always recommend at least a 3.5 in this market and even 4.0 if you really want motivated agents showing your property in today’s market.
Second each of these halves are split again in a predetermined percentage between each agent and their associated broker. In most cases this is a 50/50 split so the listing agent and the selling agent actually end up with about ¼ each of the total commission.
In the Indy Metro area you will find that most full service brokers generally start at a 7% commission and reduce them on a sliding scale depending on the properties listed sales price. Your discount brokers will often reduce this down to 4 to 5% but offer a much lower BAC to agents bringing the buyers.
Now keep in mind the agent who is working the hardest to sell your home is only getting ¼ of the commission. So the selling agents income difference between 5 & 7% on a $100,000 sale is $500. Do you really think that the agent with the lower commission rate can afford to invest as much time and money in marketing your home as would a full service broker? Also note, a well marketed home with more buyers looking at it typically gets a higher sales price.
So again we ask: How important is it for you to sell your home?
Carpenter Realtors is a full service broker that provides a wealth of marketing tools including the exclusive Home Marketing System for all their agents.
The Derrick Team uses these tools and even more (like dedicated listing web sites) to achieve maximum exposure of your property to buyers in today’s market. Call or text us today to find out more at 317.563.1110. We work 7 days a week, evenings too!