Q & A with Dottie: Why Are There Different Broker Commissions?

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Q: Why do different brokerages have different commissions? I met with one broker who said they can charge 4% and another that will charge 6%. Why?
 
A: As in all professions, there are  no fixed or standard fees in Brokerage. Each firm's policies may differ, as can the services they render. When hiring a Broker, it is important to ascertain a detailed list of the services that will be actually performed by them including a Marketing and Advertising Plan. In general, those charging less commission, deliver fewer services.
 
Q: I am looking to sell my home and recently met with an agent we really liked. They are from a smaller firm with less presence in my area. Would it be beneficial to let them list my house since they have fewer listings, or is it better to go with the larger companies?
 
A: Having a personal connection with the real estate you choose can be important, and in this case you seem to have found someone you can trust. The size of the firm should not be an issue if they have an active web site, a good advertising plan for your property, and co-broke relationships with all the firms that do business in your area.
 
Q: What is the average time a home should sit on the market? Mine has been listed for 4 months and we have not received an offer. Is there anything we can do besides lowering the price to boost activity?
 
A: If there is activity in your area and comparable homes are selling, you probably need to examine your pricing strategy and the marketing plan that are in place. You might want to attend other Open Houses for similar homes to get a better handle on your marketplace. If you are working with a Real Estate Professional, you should have a meeting to discuss your findings and come up with a plan for moving forward.
 
Q: I recently sold my house and loved my broker- my friend is selling her house a few towns away. Can my broker list her home even though that is not the area their office is in?
 
A: It is best to discuss with the Broker where their expertise is strongest. While their office may be a distance, their reach may be great. On the other hand, you probably want to avoid a learning curve, and research brokerages that have a track record of sales in the area.


Dottie Herman is CEO of Douglas Elliman. If you have a real estate question for Dottie, please send it to: Reporters@WPCnews.com