Is broker charging too much commission?

[Ryan Schwartz]

Hi everyone. I'm wondering what your thoughts are... I have a friend who is an agent and his broker usually makes him charge 6% of sales price for a listing in CA.  That's on the higher end of normal, as it seems most agents do 5-6%.  This agent found a buyer for his listing and will be doing dual agency (which is completely legal and above board in CA).  He was thinking he would be able to give the seller a pretty decent discount, but the broker is only willing to let him drop down to 5%.  I told him his broker was way over priced and dual agency reasonably should be 3.75-4% (obviously the broker is taking on more liability with 2 clients).  Maybe I was off, or out of bounds, or not.  It just didn't sit right with me.  I'll take any and all feedback.  Thanks!

[David Greene]

@Ryan Schwartz

I would disagree it’s unreasonable. CA is full of “agents” who aren’t very good at their job and offer discounted commissions because they know it.

The agent is doing double the work, taking double the risk, and making sure both sides move forward with the deal. The top agents I know all would not drop their commission.