Realtor commissions and fees are always negotiable. However, to stay competitive most Realtors in CT choose to charge similar fees. Here is a breakdown of how things generally work.
• The party selling the property generally pays the fee in the range of 5% – 6% of the sales price. The most common fee for the seller in Fairfield County is 5%. Buyers generally do not pay fees in Fairfield County.
• The two brokerages involved in the transaction typically split the fee with 2.5% (or half) going to each participating brokerage.
• Each brokerage takes roughly half of this as their office fee, approximately 1.25% (Sometimes more experienced agents can negotiate a deal so their brokerage takes less)
• Various marketing and desk fees are often taken out of the remaining 1.25% (depending upon the brokerage structure) to determine the agent’s commission
• What is left of the 1.25% now goes to your Real Estate agent. This typically ranges from 1% – 1.5%
• After agents take out their expenses to run their business (these vary widely) and taxes, agents are left with roughly .5% – 1.25% of the sales price of the property in revenue for their work upon a closed transaction. If a closing does not occur, no payment is received.
The average length of time to complete a transaction from the initial consultation with clients to closing is 6 months to 1 year with agents spending an average of 6-8 hours per week on each client to cover all communications, analysis and research required for clients, customers, prospects, agents, attorneys, mortgage professionals, management companies, government officials, neighbors, and various vendors/contractor. On the listing side, initial listing weeks and other selected weeks will require 6-10 hours of work to accommodate the marketing material development and the broker and public tours. Research areas include competitive property analysis, home tours, previews, town hall documents, financial analysis, vendor screening, property questions, etc. Communication activities include phone calls, client meetings, agent meetings, agent and broker open houses, print materials, web content and emails.