re: Realtor Fees and high dollar OT Baller estates

So $75k to sell my place? frick that. I am honestly surprised that the percentage isn’t on some kind of sliding scale as the price increases.

Have a few of them with good reviews send you a marketing plan and fee structure. Sometimes cheaper isn't better.

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The higher end real estate usually requires more work and much more money invested for the realtor as they have to market it more which costs money and they spend more time on the property. They have more invested then your lower priced properties.

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But are they really doing twice the work and worth twice as much selling a $1,000,000 house as they are a $500,000 house? Seems doubtful which I think is the OPs point and I think it is a good and accurate one. Agents are more willing to come down when you get into high value properties because they know they can still get the same or better return on their work/time.

$40,000 commission (4%) selling a $1,000,000 house versus $30,000 commission (6%) selling a $500,000 house is still going to be a win on the more expensive property for the agent most of the time. They are doing the same basic work for each (pictures, online marketing, showings, help with paperwork).

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I am honestly surprised that the percentage isn’t on some kind of sliding scale as the price increases.

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That's definitely something you can negotiate. That's not uncommon on high dollar properties.

On the houses I have sold in the past I had it set up like this. IIRC it was 2% on the first 200K then 1% after that, or along those lines.

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But are they really doing twice the work and worth twice as much selling a $1,000,000 house as they are a $500,000 house? Seems doubtful which I think is the OPs point and I think it is a good and accurate one. Agents are more willing to come down when you get into high value properties because they know they can still get the same or better return on their work/time.

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I never said twice as much, but if you build a million dollar home are you using a guy that builds $250k homes? If you have a billion dollar lawsuit are you using a $200/ hour lawyer?

Go look in any big city, and there's a select handful of realtors with most the million dollar listings. There's a reason for that, they are usually the best like anything else. They are able to give you the little details that help you make that extra $10-20k because they sell and buy similar listings all week, whereas you could get a better deal with another realtor that maybe sells 1 million dollar property a year.

How much is piece of mind worth also? Go to the top 2-3 realtors and get their commission. Sure you can find someone to list for less, but what all are you risking?

All depends on what you negotiate. There’s a $5.9 mil house listed in CCLA right now that offers 2.5% to the buying agent

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if you have an agent that is well established and connected, and can bring you multiple buyers.

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This is understated. The huge benefit in using a well known realtor in your market and especially in high end properties is who they know and who they having looking to buy and sell in their contacts.

For something like a million dollar farm in certain areas, there are often times multiple buyers that are waiting for the right properties to open up and certain realtors will sell them before listing it on the market.

You’ll fork over around ~6% for realtor fees. Congrats on the inheritance, but you sound like you’ll be broke in a year or two.

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Congrats on the inheritance, but you sound like you’ll be broke in a year or two.

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Really? The guy worried about realtor fee rates is the one who is going to be broke? I guess anyone who doesn't just choke down 6% without asking questions is the smart guy?