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Should we expect to pay in commissions to the listing agent for property that is listed at about 119,750.00/40 acres with electric/tele.
This is rural in NM.
10% is a lot! I don't know all of the details of your situation but I take listings at around 6% for residential, farm and ranch or land. Less if the seller is employing me to represent them in a purchase after the listed property sells. All commissions are negotiable.
There are numerous times raw land is listed for 10% in Texas - but that's because there is still a lot of cheap land here. At $120K, you should be able to get it listed for 6%.
Should we expect to pay in commissions to the listing agent for property that is listed at about 119,750.00/40 acres with electric/tele.
This is rural in NM.
Is 10% too much or ??
Thanks,
HW
10% is high, IMO. However, that is what I see land auctioneers with Brokers licenses commanding these days. A traditional realtor will likely be in the 7% neighborhood for commission. Remember, commisions are not "set".
Thank you for your replys. I was wondering if a "sliding" scale would be appropriate, i.e., if the property sold within 90 days then 10%, 90-180 days 8%, etc.
Just trying to make something work.
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Originally Posted by Hunter Wold
Thank you for your replys. I was wondering if a "sliding" scale would be appropriate, i.e., if the property sold within 90 days then 10%, 90-180 days 8%, etc.
Just trying to make something work.
HW
I'd be agreeable to something like that. Commissions, as many have stated are negotiable. I'd much rather have a client propose something creative than to have them unhappy over a commission.
The higher the commission, the more motivation brokers will have to sell your property over listings of other land owners. It does make a real difference.
That said, negotiate the figure that makes both you and the agent happy and stick with it. The problem with a sliding scale over time is that an agent can show the property when it is at, say, 8%, and then presents an offer a couple of days later when the number drops to 7%. Confusion and turmoil are the inevitable results.
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Negotiate a fixed commission
