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I am hiring an agent to list and sell my home. We are agreeing that the listing price will be around $3M. Could any one share with me what a reasonable commission should be at this price range? I am willing to pay a % in the listing agreement, but the typical 4%-6% percentages seem too pricey. I was considering a flat fee but wanted to get some sort of candid feedback first before suggesting it. Please let me know - thanks.
I put alot more marketing into a higher priced listing an don't budge off my 6%.
When you are putting listings in the Dupont Registry and other such magazines it costs a bit of money.
Of course if someone was willing to pay for all the marketing themselves and an upfront flat fee whether the house sold or not, I would consider it. Not many people would want to lay out $5000-$6000 in marketing and $50,000-$100,000 for a flat fee though.
I think 6% is reasonable and isn't it split w/the agent bringing in the sale? For a 3 mil house, I would also ask that the house not be on a key box and have your agent meet at the house any agents bringing the people wanting to look.
Well as an agent who deals with Multi-million dollar homes i can tell you that i charge 6% (3% to listing agent 3% to buyers agent), however, i also place a contingency that if i bring you a buyer and i am representing them aswell, then i charge 5% (2.5% to listing agent 2.5% to buyers agent.) I feel that is a fair compromise because i would be doing twice the work. Also consider, to market a million dollar home, with color spreads in upmarket magazines is expensive, and in this market there is a chance that we can spend thousands of dollars and not sell your property.
I offer my clients if they feel the fee is too high, to pay all the marketing costs and a set fee which is payable regardless if the property doesnt sell and is typically around 50-60% of what the commission would be. So if the 3% commission would be $90,000 then i would charge an upfront fee of approx $50,000. When a client sees this amount and its not contingent on the property selling, they soon decide on the commission structure.
I would have to agree with everything that has been said.
You should also look for an agent that sells in the exact area your home is located. Many agents from other areas take listings that really aren't in an area they sell in and then when they get questions about the area i.e. closest airport, restaurants, schools system, they can't answer the questions or they answer them incorrectly because they aren't familiar with the area.
Many of the buyers for the higher end properties have been coming from overseas, so see if the agent you hire has contacts, or will be marketing overseas as well.
On a 3 million dollar property, you real estate agents are starting to sound like lawyers. You will sell a 200,000 house for 6%, thats $12000. Now you want 180000 to sell this guys property. Tell me you are going to spend 14 times as much time and money. Baloney.!!! If you shop around you will find a hundred real estate agents who will take the listing for 3%. Thats the advice from a non realtor.
On a 3 million dollar property, you real estate agents are starting to sound like lawyers. You will sell a 200,000 house for 6%, thats $12000. Now you want 180000 to sell this guys property. Tell me you are going to spend 14 times as much time and money. Baloney.!!! If you shop around you will find a hundred real estate agents who will take the listing for 3%. Thats the advice from a non realtor.
Although you are replying to a several year old thread, I tend to agree. There should be a cap on what you will pay regardless what the value of the property is. In the same respect they may even need to ge a higher commission on low end properties. I was surprised the first time I listed some vacant land realtors wanted 10%. I just would not pay it an listed it myself and sold it. I told them if they brought me some one I would pay 3% and no more. Sure enough they showed up with clients although I ended up selling myself just from my sign. Of course that was a few years ago.
On a 3 million dollar property, you real estate agents are starting to sound like lawyers. You will sell a 200,000 house for 6%, thats $12000. Now you want 180000 to sell this guys property. Tell me you are going to spend 14 times as much time and money. Baloney.!!! If you shop around you will find a hundred real estate agents who will take the listing for 3%. Thats the advice from a non realtor.
I'm confused. 3% split that with a buyers agent? Good luck getting that shown much....1.5% doesnt bode well for a successful listing.
Or offer 3% to a buyer's agent and list it for free?? Weird suggestion.
When it comes down to it, it's all relative. 6% (for example) of ANY selling price is 6%. It's true that on a $3million dollar sell it costs the seller $180k, then that's split, $90k per broker. Then each Realtor has their "spit" with their broker. Usually about 30% at least. Then over $18k goes to taxes (self employment tax). Now we get to take home $45k. That's not counting the high cost of advertising/marketing a house in that price range. So figure $40k or so...IF IT SELLS!
I'm not saying that's not better than digging ditches, but when digging ditches it's not likely that you'll get sewed. There's a reason some realtors on this thread sound like attorneys, we have to.
On a 3 million dollar property, you real estate agents are starting to sound like lawyers. You will sell a 200,000 house for 6%, thats $12000. Now you want 180000 to sell this guys property. Tell me you are going to spend 14 times as much time and money. Baloney.!!! If you shop around you will find a hundred real estate agents who will take the listing for 3%. Thats the advice from a non realtor.
Couldn't have said it before myself (and that is coming from a realtor). I've seen plenty of listings here in Orange County, CA above the $1-2m price with buyer's agent commissions of 2-2.5% (meaning that the listing agent is making the same or less). Remember, the commission is ALWAYS negotiable.
I'm confused. 3% split that with a buyers agent? Good luck getting that shown much....1.5% doesnt bode well for a successful listing.
Or offer 3% to a buyer's agent and list it for free?? Weird suggestion.
When it comes down to it, it's all relative. 6% (for example) of ANY selling price is 6%. It's true that on a $3million dollar sell it costs the seller $180k, then that's split, $90k per broker. Then each Realtor has their "spit" with their broker. Usually about 30% at least. Then over $18k goes to taxes (self employment tax). Now we get to take home $45k. That's not counting the high cost of advertising/marketing a house in that price range. So figure $40k or so...IF IT SELLS!
I'm not saying that's not better than digging ditches, but when digging ditches it's not likely that you'll get sewed. There's a reason some realtors on this thread sound like attorneys, we have to.
Not all agents have 30% splits...many have low cost brokers like mine who have a 0% split (charges a per transaction fee).
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Hi there
