Marketing Fees On Home Sale Listings
Where should I begin…… someone in our industry must have started this ‘fee inclusion’ some time ago and it has now been adopted by many Agents in our area.
For those of you who are not familiar with this so called "Marketing Fee" it is more the Home Seller that needs to be aware then Buyers. For example, if you should sign a listing for 3.5%, a percentage of that (usually 2.5%) goes to the Co-operating Broker to bring the Buyer to your home and hopefully purchase it. Lately, that percentage has been decreasing to 2% or occasionally even less.
Some Agents are now including a marketing charge on that 2.5 or 2% fee. In other words, the Listing Agent is charging the Buyer’s Agent to market your property. I've seen this fee anywhere from $180 up to $500 and sometimes even more. Now call me old fashioned but as a Listing Agent we should be paying to market your home! I stand firm that this is our responsibility!
Agents may resort to this because they are listing your home at a very low commission rate. This means that they would be making 1% commission or less and may not have the adequate funds to market your property the way it should be. Some properties have been listed with a significantly lower commission rate while the Buyer’s Agent is charged a marketing fee. Marketing plans may only include MLS exposure as funds are too limited for increased marketing opportunities.
This is unacceptable and not in favor of the Seller who is looking for the best marketing approach and successful end result for the sale of their home. What is even more concerning is that the Seller may not be aware of what is happening. As a Home Seller you expect your Agent to market your home, show it with pride and do everything in their power to sell it for the most amount of money in the least amount of time. What you shouldn’t expect is an Agent to charge a commission and then charge another party to market your property because they are not prepared to do so. Hidden costs never make sense!!!
Seller’s - listing your home is like buying a key appliance or piece of furniture for your living space. You get what you pay for. Talk to your Agent. Please ask them about their marketing strategy, where they intend to market your home and if they charge additional fees to other realtors for showing your home. Ask them what their average selling time is and how they plan on making sure your home gets the right exposure so that every possible buyer that wants to look at it can.
Another important note for sellers....Home Staging has become one of the most successful strategies to get your home sold fast. A seller who stages their home gets on average 4-7% more on their selling price. Ask your agent about Home Staging if they don’t mention it. If your home sells for 7% more and your agent is charging on average 5% commission not only are you getting their services for free but your making 2% more then your neighbor.......now that’s worth considering!