In real estate, a listing fee is money paid to the agency that lists your home. The money goes to pay for many things: It pays for the knowledge and experience of the real estate agent you hire, marketing costs, Multiple Listing Service fees, contract fees, legal representation behind the agency, and more.
But there’s one place that money goes that takes the most. It’s the fee paid to the buyer’s agent. In a normal 6% listing, 3% goes to the listing agent (to pay for all those things above), and 3% to the buyer’s agent.
What about a discount fee? Sometimes a realty company will say they have a 1% listing fee. That means they’ll take 1% for their side. However, if a buyer’s agent brings an offer (that’s usually how it works), you’ll need to offer up to 3% to that agent.
Plus, a discounted listing fee might come with limited marketing services that can reduce the speed and size of offers and the ease of the transaction. Most agents won’t discount their fee on harder to sell properties. And the better, more assertive and experienced agents will only discount on a case-by-case basis.
Planning to sell soon? Contact me for a list of my recent clients as references and to discuss fees, pricing, and marketing plans for your home.