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Realtor Fees and high dollar OT Baller estates
Posted on 11/8/17 at 7:02 am
Posted on 11/8/17 at 7:02 am
I know the OT loves them some realtors but I have a question about their fee structures.
Does the percentage paid to the real estate agent change as you get into high dollar properties? While I am certain the agent would love to get the same percentage on every sale, is it normal to negotiate a reduction in fees as the value of the property increases?
We are involved in a family property that will list for over $1,000,000 and I have no idea how to approach this with an agent. No way I am paying someone the same percentage as I would on a $250k cookie cutter but this isn’t something I am thinking will work as a FSBO either.
ETA: What is standard and what would be a reasonable rate for this property in your opinion?
Does the percentage paid to the real estate agent change as you get into high dollar properties? While I am certain the agent would love to get the same percentage on every sale, is it normal to negotiate a reduction in fees as the value of the property increases?
We are involved in a family property that will list for over $1,000,000 and I have no idea how to approach this with an agent. No way I am paying someone the same percentage as I would on a $250k cookie cutter but this isn’t something I am thinking will work as a FSBO either.
ETA: What is standard and what would be a reasonable rate for this property in your opinion?
This post was edited on 11/8/17 at 7:06 am
22
Posted on 11/8/17 at 7:04 am to jbgleason
Negotiate it lower or FSBO
Posted on 11/8/17 at 7:05 am to jbgleason
They'll negotiate to close the deal. Sometimes if 2 parties are off by a 1000 or so the realtor will put up some of their commission to close the deal. Anything is negotiable
Posted on 11/8/17 at 7:06 am to jbgleason
Ever watch million dollar listing?
Posted on 11/8/17 at 7:08 am to jbgleason
Call Ann Mullins and ask her
Posted on 11/8/17 at 7:09 am to jbgleason
I have a buddy who is a realtor in the Hamptons. He sells properties well into the 10's of millions. I asked him about this and he said they typically get between 2%-4%, but they also have serious expenses up there that realtors in a different ballgame wouldn't even understand (i.e. they own a helicopter to bring clients to various properties).
Posted on 11/8/17 at 7:10 am to jbgleason
quote:
property that will list for over $1,000,000
Where at, bruh? I've been looking for a camp.
Posted on 11/8/17 at 7:10 am to jbgleason
Negotiate a flat rate. Don’t give them a percentage. They’re a dime a dozen. Just like the model of buying a car is broken so is the realtor industry. We need to go to the Australian model. They pay a flat rate and the customer pays the advertisement costs.
Posted on 11/8/17 at 7:12 am to jbgleason
Average rate is close to 5% now instead of 6% historically. If an agent will sell a million dollar property for you, the 50k fee is well worth it imo.
You also need to explore what that agent does to sell it and read reviews etc. Don't just shop rate. If they work their arse off and sell it then it's worth it. A 3% bum who doesn't do anything and hopes it sells on it's own isn't ideal obviously.
You also need to explore what that agent does to sell it and read reviews etc. Don't just shop rate. If they work their arse off and sell it then it's worth it. A 3% bum who doesn't do anything and hopes it sells on it's own isn't ideal obviously.
Posted on 11/8/17 at 7:12 am to jbgleason
Same thing probably happens if you don’t want to pay market realtor fees, they will steer their clients to other comparable properties that do pay them market rate.
Posted on 11/8/17 at 7:12 am to jbgleason
My family would be happy to negotiate with you. 
Posted on 11/8/17 at 7:14 am to BigPerm30
quote:The only problem with this is it takes away the realtors incentive to push for the best deal. They make the same no matter how well/poorly they perform.
Negotiate a flat rate. Don’t give them a percentage.
Posted on 11/8/17 at 7:17 am to The Mick
These dudes in here talking about flat rates and shite have never owned a property let alone needed a realtor to sell it for them. It's a shitty game, but it's a game that typically needs to be played.
Oh yeah, good luck with that FSBO shite too. You realize the purchasing agents steer clear of those right...
Oh yeah, good luck with that FSBO shite too. You realize the purchasing agents steer clear of those right...
Posted on 11/8/17 at 7:26 am to The Mick
quote:
The only problem with this is it takes away the realtors incentive to push for the best deal.
So you’re telling me that not getting paid until you sell the property is not enough incentive? Write it up where you can fire them at will. If they aren’t living up to their end of the deal fire their arse.
Posted on 11/8/17 at 7:34 am to BigPerm30
quote:They're not getting paid until it sells whether it's a flat rate or a %. The flat rate takes away incentive to sell for a higher amount, it's human nature. A flat rate will also turn off buyer's agents from looking at the property.
So you’re telling me that not getting paid until you sell the property is not enough incentive? Write it up where you can fire them at will. If they aren’t living up to their end of the deal fire their arse.
The hate for realtors on this board is retarded. On a million dollar property, the clock is ticking quickly for property taxes, insurance, mortgage payments (if they have one) etc. The longer it takes to sell the more it costs in the long run.
This post was edited on 11/8/17 at 7:35 am
Posted on 11/8/17 at 7:39 am to The Mick
These dudes probably don't even know that the realtor % is split in half between the listing and purchasing agents either.
Posted on 11/8/17 at 7:51 am to jbgleason
You need to contact an agent my friend used. I will definitely use him when I sell my house. He charges 1% to the seller and if he locates the buyer you only pay 2-2.5% total. If the buyer has their own agent he will pay them 2-2.5%. Worst case you're looking at 3.5% total. 5-6% is ridiculous in today's market with technology the way it is. 1% lists
Posted on 11/8/17 at 7:54 am to DirtyMikeandtheBoys
It is actually split into fourths. Each realtor gets 1.5% and each broker gets 1.5%.
And the good ones aren't a dime a dozen nor will they negotiate much. A good realtor will advertise an actively show the property. If the % is reduced other agents don't care to look unless they will get the full commission meaning the one that reduced to say 5% will have to eat another realtors reduction and they don't typically work like that.
Try to sell it yourself if so inclined and if that fails research a good agent in that area and for the particular property and let them do their job.
You get what you pay for. I don't eat discount sushi for a reason.
And the good ones aren't a dime a dozen nor will they negotiate much. A good realtor will advertise an actively show the property. If the % is reduced other agents don't care to look unless they will get the full commission meaning the one that reduced to say 5% will have to eat another realtors reduction and they don't typically work like that.
Try to sell it yourself if so inclined and if that fails research a good agent in that area and for the particular property and let them do their job.
You get what you pay for. I don't eat discount sushi for a reason.
Posted on 11/8/17 at 7:59 am to jbgleason
Negotiate a lower commission percentage before you sign a listing agreement. But remember the lower you go, the less likely a buyer’s agent will bring their client to see the property.
Standard is about 6% (3% for listing agent and 3% for buyer agent). Try to negotiate down to 4%
Standard is about 6% (3% for listing agent and 3% for buyer agent). Try to negotiate down to 4%
Posted on 11/8/17 at 8:26 am to jbgleason
Tell them you're shopping realtors, they'll work to get your business, particularly if the property looks to draw interest.
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