Andy Sparks Real Estate Commission and Real Estate Auction Commission Schedule

My fees range from 0 to 6%.

By Indiana Real Estate License Law, all real estate brokerage commissions are negotiable. Because I am a small company and strive to reduce overhead at all times, I can offer lower real estate commissions and still remain profitable. If you want your real estate sold, call me. If you don’t really care if your property sells or not, call my competitors, they are in the real estate listing business. I am in the real estate selling business.

For the year 2002 and until further notice, My Real Estate Commission will be 6% of the sales price. There is an alternative to this 6% Real Estate Commission. I have developed a buy down program for my real estate commissions. If you will pay 1% of the listing price in advance, I will reduce the real estate commission to 4%; this results in significant savings. To clarify this, you would pay, 1% of the list price in advance and the remainder of 3% would be due at the closing, when and if the property sells for a total of 4% and no the 1% is not refundable. You pay that to get the benefit of a greatly reduced real estate commission.

One of the points raised by my competitors when competing against a company that charges a lower commission for a listing is the amount that is offered to share with cooperating brokers (Buyer’s Agents in Indiana). It is typical in our market to offer a coop split of 40% of the gross real estate commission.

Example; If you listed your house with a 7% real estate commission, the coop broker would receive 2.8% of the sales price or 40% of the 7% gross commission.

I offer to split my commissions 50/50 with coop brokers. Therefore, a coop broker would receive 50% of the gross commission. This negates the point raised by my competitors that if you list with a lower commission, no one will show your property because the coop commission is lower.

Sideline; You may not realize it, but when a real estate agent that is competing for a listing makes that statement, they are guilty of price fixing under the Sherman Anti-Trust Act and subject to severe fines and possible imprisonment. They are attempting to keep the real estate commissions high by scaring you out of listing with a lower commission. If they don’t mind breaking federal law, what are they willing to do to you during the process of selling your property?

Okay, back to the subject at hand.

My real estate auction commissions range from 5% plus advertising down to zero. You may ask, how do you charge the Seller a 0% commission? Easy, I charge the Buyer a 10% Buyer’s Premium and refund you the advertising costs that you have paid in advance.

Example; if your property sold at real estate auction and the high bid was $100,000. We would increase the high bid by 10% to make the sales price $110,000. The purchase agreement will be written for $110,000 and my commission and the credit for the advertising expenses will show up on the seller’s side of the closing statement.

If you chose the 5% commission, it works just like any other commission. The high bid at the auction is the sales price and your net is reduced by the amount of the commission. Either way, I offer a 2% fee to cooperating real estate brokers whom pre-register and represent buyers at my real estate auctions.

IF you would like to receive New Listings from the Southern Indiana Realtors Association MLS, fill out this form and you will get them about once a week along with my upcoming auctions and HUD repo properties in Southern Indiana. There is no charge for this service.

If you only want upcoming auctions and HUD repos, fill in this form.

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