Originally published June 30, 2007 at 12:00 AM | Page modified June 30, 2007 at 2:01 AM
Home Forum
What commission for agent covers
Q: My cousin recommended that I use his real-estate agent to sell my home. This agent plans to do exactly the same things to sell my house...
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Seattle Times staff reporter
Q: My cousin recommended that I use his real-estate agent to sell my home. This agent plans to do exactly the same things to sell my house that she did to sell my cousin's — open houses, ads, etc. The 6 percent sales commission my cousin paid on his $400,000 house was $24,000. If my house also sells for full price — $649,950 — the commission will be $39,000. Why should I pay $15,000 more for exactly the same work? Isn't this price gouging?
A: That's an excellent question for you to ask your agent, who should be able to satisfy your concerns that you're getting your money's worth.
But in general, you're paying more than your cousin because of the differences in marketing time and expense, said Dennis Rose, the 2007 president of the Washington Realtors Association and owner of Rose & Associates, a Yakima real-estate firm.
Houses priced at or below the median for the area sell faster than more-expensive houses, he said, because the pool of buyers who can afford them is larger.
In King County, a $400,000 single-family house in good condition and a desirable neighborhood may sell in a matter of days because the county median is more — $469,000, according to the Northwest Multiple Listing Service. A markedly more expensive home may take weeks or months to find a buyer.
While your agent may have the same basic marketing plan for your house as for your cousin's, it may not play out that way, Rose said.
"People who're attracted to higher-priced homes within any market are more experienced buyers," he observed. "When people have a lot of choices, it takes more time to get them to buy. Therefore the listing agent who controls the marketing has to spend more time and money marketing the property."
This may mean, for example, that the agent pays for professional photos for magazine ads and even for staging to make the property more attractive. Some have been known to freshen up landscaping, paint rooms and even underwrite minor repairs.
"Traditionally agents aren't paid until they fulfill their contract and sometimes [they] lose money on marketing alone," Rose said.
He also notes that when homes aren't sold the listing agent doesn't get paid at all.
The commission system, while widespread, isn't the only way real-estate companies operate. Indeed, flat-fee and discount firms use stories like yours to argue their case.
If, after talking to your agent, you're still uncomfortable, Rose suggests you investigate other options. "I do encourage people to do what they want to do," he said.
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Q: My town-house condominium development has a shared attic space that's accessible through only two units. It's obvious from the sounds that the attic has a rodent problem. The owner of the town house with attic access closest to the problem refuses to let the association in. Must she allow access so this problem can be resolved?
A: Ridding the property of rodents is the responsibility of your homeowners association, presuming the critters are residing within the jointly owned common area.
If that's the case, the association has authority under state law and its own covenants to use what's called "forced access power," said Mercer Island attorney Kris Sundberg. The board (perhaps through the complex's manager) gives the owner written notice that it needs to enter and asks to schedule an appointment.
If the owner refuses, then a second notice goes out saying the board will use its powers under state statute and that will be within X number of days.
It's infrequent that boards have to do this, but it does happen, Sundberg said, particularly in situations where the inhabitant has mental-health issues or is neglecting a leak that's damaging other units.
Sometimes a locksmith or the police must be brought in, "but I don't know of any case where we haven't eventually gotten access," Sundberg said. "The one thing we don't do is provoke a physical confrontation."
Q: Our Seattle house has a detached garage approximately 18 inches from the property line. It was built more than 50 years ago. Do we have the right to replace it with a modern structure using the existing 18-inch setback (as opposed to the current code requirement) provided the new structure does not exceed the existing square-foot area and single-story height?
A: You probably can build a new garage if it's the same size and in the same place as the old one and that one had the required permits, said Alan Justad, spokesman for Seattle's Department of Planning and Development. However you may need to visit the department's applicant services center to know for sure.
You may also need to put together a sketch of the new garage along with a simple plot plan, with measurements, that shows where it will be on your property. You don't have to hire anyone to do this, Justad said. A simple sketch is good enough.
The applicant services center is on the 20th floor of the Seattle Municipal Tower, 701 Fifth Ave. Call 206-684-8850 or go to www.seattle.gov/dpd, for more information.
Home Forum answers readers' real-estate questions. Send questions to Home Forum, Seattle Times, P.O. Box 1845, Seattle, WA 98111, or call 206-464-8510 to leave a question on a recorded line. The e-mail address is erhodes@seattletimes.com. Sorry, no personal replies. More columns at www.seattletimes.com/columnists.
Copyright © 2007 The Seattle Times Company
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