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San Francisco Home Seller pays less commission new listing with Agent San Francisco Real Estate

It occurred to me that technology is paving the way for listing home sales in San Francisco in many ways. Technology is lowering home selling listing commissions for listing and selling agents. Companies like Zillow and Redfin are trending the real estate markets and dropping the average sales commission to 4.5% commission as noted on their websites. A typical listing commission in San Francisco ranges from 5-6% and the overall average commission thus far in 2017 is 5% listing commission. But what does that mean? Simply The seller typically pays listing commissions and the listing agent listing representing the seller and the selling agent representing the buyer split an agreed portion of that commission typically 50%/50%. So if the Sales listing commission of a particular home is 5%, then each agent receives 2.5% commission 2.5% + 2.5% = 5% Total listing commission and so on.


Those agents split their 2.5% commission with their brokerage firm, thus the agent representing the buyer or seller typically gets less commission. An average broker firm splits that commission 50%/50% so the sales agent and the broker each make 1.25%. 1.25% + 1.25% = 2.5%. for each individual brokerage firm i.e., the listing brokerage and selling brokerage firm. Commissions are derived contractually on a per sale basis and are not set by law. There is no one set listing commission. The listing commission is set at what is typical for the market and what the agents, and the sellers agree upon via a listing contract. Although it seems that agents and brokers make big monies, well they do!, but they do not make their money all on one transaction but many transactions and running a very efficient brokerage firm. Its very expensive for most brokerages to find themselves closing multiple transactions on average. Like in every other industry there is a small percentage of brokers/agents making loads of money, but the true fact is that the Yearly Salary in California a Real Estate Agents earns a median salary of $52,730 per year. Salaries typically start from $26,850 and go up to $98,970, Although in the realm of running a business there is advertising, marketing and a ton of online, education and other overhead counteracting with that average income, so on average real estate agents do not make a killing in net revenue, especially if they live in San Francisco. Lets just say that a server working at a restaurant can make that much on tips alone without overhead or legal liabilities.

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So as you an see if companies like Zillow and Redfin already use bottomed out sales commissions in their marketing schemes, then the agents are always getting cut on their commission or accepting lower commissions and it leads one to wonder why? So, what does this mean? Well I am not certain. although, the quote “You get what you pay for” rings heavily in my ears. Cut throat real estate tactics, marketing schemes and companies never mention experience or wisdom in the entire marketing strata and negotiations of commissions. The truth is not many well experienced brokers or agents would hang their license in places like that. These High Tech real estate companies only boast technology marketing schemes as if a computer would be able to list your home on its and negotiate the the fine details of a sales transaction between a buyer and seller. In the end the entire thought of High Tech online sales is merely amazing marketing that normal home sellers buy into these days. In the end Humans take the helm on every real estate transaction. Sadly the main focus is on commission only.Yes of course commission is no doubt very important, although when one starts to think about the legal implications and cost in a sales contract gone all wrong, then idea of reduced commissions is dwarfed in comparison to most nightmare real estate lawsuits over the smallest disagreements or torts in contract and the cost of those lawsuits. One would argue that experience and wisdom in real estate is a big factor in closing real estate transactions. After all, Home buyers and sellers deserve the best experienced agents when selling or buying their homes as an element of legal safety. A good, experienced agent will keep the buyers and sellers on tract to where they actually aspire to be and out of legal trouble. There have been countless real estate lawsuits that typically take several floors of space in most college law libraries that leads one to think that YES in fact experience and wisdom are important factors while representing buyers and sellers. There are many disclosures, forms, procedures, legal facts and figures, and details pertaining to most home sales in California, especially in San Francisco. One must adhere and pay attention to the smallest legal detail. Even Sales Negotiations is where experience really counts and plays a vital role in real estate transactions. There are thousands to hundred of thousands of dollars at stake in any one sale. So how does that factor or compare to a small difference in sales commissions?

So the real question is what agent with vast experience and wisdom would work for a watered down commission? I would beg and I ask the question that possibly a newbie unexperienced agent would. Now Its only a suspicion and a question of mine. I am not drawing any conclusion on that one, but it is worth a thought and I draw the question because it is a very real question. It appears that companies such and Zillow and Redfin have caused an uproar amongst agents and lowered commissions. Companies such as Century 21 and other big name real estate firms are gearing up for these changes and challenges in the market. Lowered commissions affect their business franchise tremendously.

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Wouldn’t it be fascinating if a home seller could sell their home with a reduced listing commission and still maintain the services of highly qualified and experienced real estate agent? Lets say an agent with 20-25 years of experience in real estate sales? Wouldn’t it be amazing if that reduced commission was lower then the lowest cut through “High Tech” company out there? Well it is being done…Wouldn’t it be amazing if the agent didn’t hide behind all that high tech and was a real person that was an amazing negotiator, marketing guru and real estate strategist that used all that technology to market and sell your property?

Redfin states on its website that it pays 4.5% and Zillow anywhere from 4.5%-6%
Historical sales commission is 6%, but as we know Real Estate Broker’s commission rates are not regulated in any state and are ALWAYS 100% negotiable.
Typical historic commissions is at 6%
Redfin listing commission is at 4.5%
Zillow lowest listing commission is at 4.5%
But, AGENT SAN FRANCISCO boast the lowest commission of them all and offered experienced agent with no less then 20 years of real estate experience under their belt and a 4.45% COMMISSION. YOU GET A BROKER WITH OVER 20 YEARS EXPERIENCE IN REAL ESTATE SALES LISTING, SELLING AND MARKETING YOUR PROPERTY. Just look at the breakdown below.

Typical commission: $850,000 x 6% = $51,000
SF Average commission: $850,000 x 5% = $42,500
Zillow/Redfin commission: $850,000 x 4.5% = $38,250
Agent San Francisco Commission: $850,000 x 4.45% = $37,825 <-- Wins!

We will strive to give you the best real estate service with over 20 years experience and yet SAVE YOU TIME AND MONEY. Contact us at 415-796-0086 or

SF Sellers pay Less Commissions

San Francisco Home Sellers pay Less commission listing with Agent San Francisco Real Estate. CalBRE #01173770, NMLS #1425778.

Agent San Francisco Real Estate SF

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