Does This Set Up Really Serve the Hoboken Condo Seller?
We all know that sellers agree to pay a realtor commission when listing their condo with an agent. In Hoboken, the typical fee is 5% which is then split between the listing agency (part to the agent, part to the company) and the agency that finds a buyer (also part to the agent, part to the company). In all my years, I’ve always seen the split between the listing agency and the selling agency be 50/50.
The other day, I came across an unusual listing 5% listing. By law, the percentage commission is always negotiable between the seller and the listing agent, but what made this listing so peculiar was that the split was 60/40. I thought it might have been a typo so I called the listing agent to ask. She told me it was intentional and that her office would in fact get 3% and mine only 2% were I to sell the property. Why was that? According to her, it was to reimburse her for marketing the property.
What I wonder is how many agents working with potential buyers would find this arrangement so unusual that they might even perhaps decline to show the property? Was this unconventional practice disclosed and, more importantly, explained to the seller? Would you consider or be happy with this arrangement if you were selling? I’m very curious to know what potential sellers think.