U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > North Carolina > Coastal North Carolina
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 11-24-2010, 07:15 AM
 
9 posts, read 46,218 times
Reputation: 16

Advertisements

We have no experience in land sales, so we were shocked to hear the reported agent fee for selling land was 10%. Is this typical for what an agent should receive for selling land, particularly if we have to involve an attorney and pay him, too? Does the buyer pay any of that 10% fee?
Reply With Quote Quick reply to this message

 
Old 11-24-2010, 07:44 AM
 
Location: Swansboro, NC
107 posts, read 214,992 times
Reputation: 92
Every Firm has their own set scale rate. There is NO set fee that is charged, that is unlawful for firms to collude together to FIX the rates...
Reply With Quote Quick reply to this message
 
Old 11-24-2010, 12:08 PM
 
Location: NC
128 posts, read 432,333 times
Reputation: 104
A 10% commision is standard for land sales in NC and is typically paid entirely by the seller. You can of course shop around and see if you can get a lower fee with a different real estate company. Some may negotiate, some may not. Land transactions are much riskier for lenders and representing agents which is why the fee is typically higher than homes.
Reply With Quote Quick reply to this message
 
Old 11-24-2010, 12:21 PM
 
Location: Morehead City, NC
1,676 posts, read 5,354,464 times
Reputation: 1244
It generally takes much longer to sell land so the agencies expenses are greater. A lot will depend on size, type and location of the land. For example-Undeveloped land in Pamlico or Beaufort Co. would more than likely get a higher commission rate. Developed waterfront land along the Crystal Coast would tend to get a rate closer to the house rate.
There are many, many variables/factors. CarolinaAppraiser makes a good suggestion when he says to shop around. But please do not make your decision only on rate of commission. 6% of an unsold property is nothing. 6% of an unsold property over an extended period of time will cost you.
Bill
Reply With Quote Quick reply to this message
 
Old 11-24-2010, 12:48 PM
 
Location: NC
128 posts, read 432,333 times
Reputation: 104
Quote:
Originally Posted by Bill Hitchcock View Post
6% of an unsold property is nothing. 6% of an unsold property over an extended period of time will cost you.
Wise words.
Reply With Quote Quick reply to this message
 
Old 11-24-2010, 12:58 PM
 
Location: Greenville, NC
2,078 posts, read 5,037,432 times
Reputation: 1160
We have a real estate company here getting 8% PLUS a $1,000 retainer for selling homes. Good luck getting that outta me.
Reply With Quote Quick reply to this message
 
Old 11-26-2010, 09:59 AM
 
Location: Morehead City, NC
1,676 posts, read 5,354,464 times
Reputation: 1244
Oops forgot to mention. The buyer not the seller "usually" hires the closing attorney. Buying and selling real estate is a legal process which involves contracts. All contracts are negotiated.
Bill
Reply With Quote Quick reply to this message
 
Old 11-30-2010, 01:28 PM
 
9 posts, read 46,218 times
Reputation: 16
Thanks for all the responses. I've sold several homes now and purchased the land we're looking to sell, so I guess I have some experience, just not on the selling end of land only. The contracts and whatnot are all too familiar, but I was hoping to lose less than 10% of what isn't a hugely expensive but primarily cleared property to begin with, particularly right outside Myrtle Beach. We were going to build there but then decided not to, and instead bought a home elsewhere. We're not desperate, but 10% is still a lot of cash. If an agent for a buyer approaches us, and therefore does not have to sell our land beyond showing it to a buyer, we're not responsible for 10% then, am I correct? We've got someone interested but it hasn't gotten to the point of contracts yet. (And we have yet to sign with a selling agent.)
Reply With Quote Quick reply to this message
 
Old 11-30-2010, 02:04 PM
 
Location: Morehead City, NC
1,676 posts, read 5,354,464 times
Reputation: 1244
Bzybeader,
It's your land-You can do/ask anything you wish. Real estate laws are designed to keep the selling/buying process legal. That's the only "must". Everything else is negotiable.
If a buyer broker approaches you with a client then you can offer to pay that broker anything you wish. It is all negotiable, but you're in the driver's set 'cause you own the land. And who ever owns it makes the rules for it.
Bill
Reply With Quote Quick reply to this message
 
Old 01-01-2014, 02:07 PM
 
8,974 posts, read 8,093,468 times
Reputation: 19488
But the rule changes, when selling land. If an agent has a buyer for your land, he/she will make a deal with you on the commission, before they ever write up the sale. If you won't pay the commission they want, they simply sell another parcel that will.

10% for selling land is the norm and has been long before I went into the business December 1971. As mentioned above, it takes more effort to find a buyer for land, and you need more commission to spend you time selling it.

You can always find an agent that will list it for less. Problem they really are not knowledgeable in what it would take to sell your land, and the chances they will sell it are almost nothing. They are the type of agent that wants to list only, will do things like cutting commission to get the listing, and waits for someone else to actually sell it. PROBLEM: Other agents will not be willing to work for less, and will spend their time selling other properties where they get a decent commission.

Land is the hardest property to sell, and requires extra effort from agents involved. I have seen property I would have wanted at least 25% commission to even attempt to sell it, as it was going to take so much effort to sell it, and it was a smaller sale. I just did not take those listings, and watched them remain on the market for years.

The amount of commission sales people want to sell your property, is based on the difficulty of selling it.

Advice: Find the best agency in the area for selling land. List it for a 10% commission, so they will work on it. The good ones, will not list land for less than a 10% commission. And even less of the good land agents, will not sell it if the commission is below 10%.

Fact: Over 80% of the people that enter the real estate business, fail out of the business. Many never make one sale in their entire real estate career. You can find one of those failing out of the business that will list anything, and will cut the commission on land to get listings, etc.

Asking an agent to cut the commission their office charges, and they cut the commission, can be compared to someone working for $20 and hour, and their boss telling that person, you have to work for $4 an hour this week, as my wife wants to to spend the day at an expensive spa, and I need the money I save when I hold back that $16 an hour from your pay to pay for my wife's spa treatment.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:




Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > North Carolina > Coastal North Carolina
Similar Threads
View detailed profiles of:
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top