There is a townhouse in my development that has been on the market for more than four months. This seems very strange at first glance, because all the other units in the complex sell in two weeks or less. This one is priced somewhat higher than others of the same size, but that doesn't explain why buyers aren't coming in with an offer. Then I noticed that the commission to the selling office was 1 1/2%.
Commissions are negotiable, and this rate is perfectly legal, but few agents will work for so little, especially since this fee is shared with their offices.
In a slow market, there is more competition for fewer buyers. In the first-time buyer price range, it is the well staged and aggressively priced properties that are selling.
James Thorner, who writes for the St.Petersburg Times, went one step further. First he made certain that his home was competitively priced and showed well. Then he listed his house with a 6 1/2% commission, with 3 1/2% going to the buyer's agent. In less than two weeks, the property was sold. A neighbor's home, with a total 4% commission, is still on the market after a year.
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