That's a common tactic among brokers. “Oh, you've priced it too low. I can get you more money!” Then they list your home, it sells (usually by ANOTHER broker), and you subtract the 6/7% commission the listing agent is charging...resulting in less to you than if you'd sold it “by owner”. Yes, I wasn't sure whether to trust anything that agents have been telling me. We based our asking price on multiple nearby comparable homes both recently sold and still on the market.
The 6/7% commission you are referring to is likely for both the seller's and buyer's agent's commissions combined. We have had multiple agents offer to list and market it for a 1% fee. My wife and I just do not want to lose control of the sale of our house. We have been offering a 2% buyers agent fee. We are going to be using a flat rate real estate lawyer with a good reputation who is the mayor of a neighboring community to close the deal.
Here is one of the fliers that a mortgage broker sent us yesterday to put out at our upcoming open house. It gives out more personal information than I normally like to share here, but he claims that he can get buyers a 5% rate right now and prequalify people with less income than his competitors can. I still take it with a grain of salt. But he seems to be a very personable guy and gave us other helpful information.
Yes, the 6/7% (or whatever the full service broker is charging) would be the total commission, to be split between listing and selling broker. Technically, fees are negotiable. Also, a broker charging you a1% listing fee will still be asking you to pay the selling agent fee, so really, you’re maybe saving a couple of points off the listing side, and that’s all.
As for the lender and his flyer...pay attention to the fine print at the bottom and the APR in the block. MIP (mortgage insurance premium) will raise the 5% rate...with some cash even paid upfront by the buyer.
Finding a flat rate lawyer is a good thing. Not sure how it works in your state, but in NC the closing attorney technically works for the buyer. The seller is free to get their own atty, but most sellers opt to let the buyers atty do the work for them. They’ll pay the closing atty a fee to do their side of the closing.