Selling Your Home and Informed Consent

Dated: September 20 2011

Views: 3637

Informed consent is generally an agreement to do something or to allow something to happen only after all the relevant facts are disclosed.  

So, dear readers, what does this have to do with the listing of your home with a real estate broker?  Simply, there are many components to the listing contract which (and I know you won't believe this) some agents never discuss with the seller.  The particularly murky and often confusing issue of commission compensation is sometimes separated from the marketing presentation, and surprisingly, even from the listing contract itself!  I have heard of agents and even entire firms which maintain the policy of "secrecy" concerning this integral piece.

Of course the total commission is in the listing contract, but the equally important component is the amount, if any, a seller is willing to compensate a cooperating broker.  So you go ahead and list your home with "Wonderful Realty", and you agree that the commission will be x%.  Do you know how that % will be divided among the brokers?  In my firm, we usually offer out 50% of the total commission to a cooperating agency.  In the rare cases where the listing will be excessively difficult to manage, such as a short sale, or foreclosure, we might be inclined to maintain a higher portion.  But most listings do not fall into this category.  

Did you know that your agent may be charging you x%, and keeping the Lion's, no the elephant's share of the commission ?  No, I didn't think you knew that.  This is because in many cases the agent NEVER DISCUSSED THIS IMPORTANT MATERIAL aspect of the listing contract.

I suggest that if you are unaware of how much you are paying cooperating agents, you call your broker immediately and find out! Then ask - WHY?

Blog author image

Russ Woolley

Russ Woolley, President of Wright Bros. Real Estate, has been a driving force within the Rockland County real estate industry for 28 years. A Rockland native, Russ was the 2002 President of the Rockla....

Want to Advertise on this Site?

Latest Blog Posts

NYACK EMBRACES DRY JANUARY

Dry January is a phenomenon that is sweeping the world. It was started in 2013 in Great Britain by the charity Alcohol Concern. British celebrities Alastair Campbell and Peter Osborne decided to

Read More

8 Thoughts On Keeping Resolutions

1.Be realistic.Making too many resolutions only sets you up for failure and discouragement. Limit your resolve to the one or two most important goals you would like to achieve in the New Year. And

Read More

2021 Housing Forecast

Some Highlights Experts project an optimistic year for the 2021 housing market. With mortgage rates forecasted to remain low, high buyer demand is expected to fuel more home sales and continue

Read More

NYACK PREDICTED TO EXPERIENCE A WET AND COLD WINTER

Winter 2020-2021 may be colder and wetter in Nyack.New York should see colder-than-average temperatures with increased precipitation. “ With La Nina well established and expected to

Read More
Fair Housing Icon NY Fair Housing Notice