Commissions are open and negotiable, there is no price fixing.  In this area we have commissions as low as 4% up to 7% and higher.  We can talk about the advantages and disadvantages in your particular situation.  I prefer to concentrate on the bottom line and how I earn my fee for services. 

I would also like to take this time to explain what that fee represents.  Most real estate professionals are independent contractors like me.  I am, essentially, in business for myself.  We affiliate with a Brokerage office that coordinates things like office space, equipment, signage, etc.  As the Listing agent for your home, the main duties I perform are to present and bring your home to the attention of qualified people looking to purchase a home like yours.  The chances that I personally will find the buyer for this property are fairly small.  If another agent brings in an offer and terms you find acceptable, I will "split" the commission with them. 

Let me show you an example:

*some agencies offer different cooperative splits i.e. at 6% they offer 2% to selling agency, 4% to listing agency - this is set by the listing agency.

This fee I receive as a listing agent is further reduced by roughly 30% for Income Taxes, which I pay as an Independent Contractor.  My personal business expenses such as my automobile expenses, Multiple Listing fees, Realtor® membership fees, business cards, flyers, education, etc. account for another 30% of that figure.

So, as you can see, MY fee for selling your home will be approximately $900.  Now consider the fact that, in our average market, this property could take an average of  four months to sell and another 30 days to close before I get paid.  Averaging that out I am making about $180 per month for each home I list.  Obviously, I have to sell a lot of houses each month just to stay in business, let alone put my son through college! 

For such a relatively small fee, you get the knowledge of my degrees in business, marketing and photography and over twenty years experience in the real estate profession.  Plus I work just about every day (I have no life!) and I personally service your property.