Can I Negotiate a Margate / Ventnor Real Estate Commission?

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Is it OK to negotiate a Real Estate agent’s commission? Not only is it OK, but many times it’s highly recommended due to the big numbers that Jersey Shore Real Estate can fetch.

‘Margate, Ventnor & Longport Real Estate has always been an active and relatively healthy market’ says Larry Campbell, a veteran agent with Balsley Losco Real Estate in Margate.

With average sale price close to, or over $1 mil, the agents & brokers can often pocket a very large commission check.  Whether buying or selling,  the home seller ALWAYS has the right to negotiate an Real Estate agent’s COMMISSION.

A question Campbell gets all the time is: What’s better? A full service broker or a discount broker? Here’s how Larry explains it: There are different types of BROKERS with respect to commission.

FULL SERVICE BROKER

Usually a well established Broker with a proven track record. They typically charge 5-6%, with no additional fees. All marketing costs are covered, such as signs, brochures, direct mail, open houses, special promotions, advertising, posting on websites like Realtor.com and the MLS. All marketing techniques & tactics would be spelled out in a marketing plan.

PRO: In a buyer’s market, (over-supply of homes similar to yours) aggressive marketing techniques should be used to tell buyers about your home. Brokers will work harder to sell your house because they stand to make more money. Other participating Brokers are more likely to push your home because the stand to make more money too.

CON: You will pay higher commissions, and the Broker may do nothing other than post your property in the MLS. You’ll still pay a higher commission.

DISCOUNT BROKER

Typically offers commissions from 3% to 4.5%, or a low flat-fee. Depending on Broker, you may get bundle of services. ex: sign, posting in MLS, posting on some Real Estate Websites, an occasional newspaper ad. Marketing dollars are spent primarily to drive customers to a company website where all of Broker’s listings are featured. Want more marketing? You’ll have to pay for it.

PRO: Save the Seller commission dollars. The Broker is still coordinating showings, offering Contract services, offering other Marketing Knowledge and Advice. Broker’s staff will push your property to customers.

CON: Other Brokers may resist showing your property because they stand to make less money. Fewer buyers will know about your property because it’s not getting aggressively promoted.

FULL SERVICE REAL ESTATE BROKERS w/ REDUCED COMMISSION 

Limited time, in certain areas, for higher list price listings, within stated price range. The additional cost of full service items done at listing agent’s expense. For example, Larry Campbell of Balsley Losco in Margate offers 3% total commission for residential listings with true market value of 1 Million Dollars or more in Margate, Atlantic City, Ventnor, Longport and Ocean City.

PRO: You get all of the positive aspects of full service, with a more reasonable and often much lower commission.

CON: The downside? Other Brokers and agents might complain about cutting the seller a break with lower commissions. Some unscrupulous agents may need coaxing by their clients to see your home. No worries though. Today, most home buyers used the web to see what’s on the market. They don’t totally rely on agent’s recommendations. Thus, your home WILL be seen.

STATED MENU BROKERS FOR A REDUCED FEE

Brokers that start at a low minimum fee of +/- 3% with a few basic services: yard sign and posting in the MLS. They charge an additional amount based on services required including: Broker Open House, Weekend Open House, advertising in a Real Estate book, virtual tours, etc. Commission rate is NEGOTIABLE.

PRO: Saves commission dollars depending on which options are chosen. The Broker still provides administrative and contract services, and offers other marketing knowledge and advice. In-house agents try to push your property to customers.

CON: Depending on Buyer’s Broker commission offered, some agents from competing Brokers will resist showing your property. Depending on the amount of promotion, fewer buyers may know about your home.

Larry A. Campbell, Balsley Losco Real Estate in Margate

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