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Commission Percentage Lowered on a Large Sale ?

Hello,
It's it customary for an Agent to Lower their Percentage on a sale of a huge piece of property that is going for 3 Million?
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November 10 2013 - US
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Answers (8)

Not so much. If you're going to hire an agent that has expertise in finding buyers in the $3M range, they probably have an expectation for a commission rate and aren't going to deviate much from that.

Now, if you try to tempt an agent who does most of their business in the $250K range, they may well be willing to massage their rate, but . . . what's their expertise in getting $3M properties sold?

All the best,
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November 11 2013
It comes down to these things.

What price are you willing to settle on my carefully researched and compiled factual data or your gut feeling for the price.

Are you going to ask me to do 50% work because you have a "High End" property or can I do what I normally do to market you home.  Is it fair to ask me do work more and make less.  Do you really want a sale agent who discounts the price, what is he going to cut out of the marketing budget to makeup for that?

Is the goal to sell house or to cash in, if it is to sell the house then worry less about the costs associated with selling it and more about the time on market and efforts the sales agent is expending.

Would you consider paying a higher commission if the sale agent will go the extra mile and tie it to certain metrics like time on market, agreed upon marketing efforts that go above and beyond.  This can work to help attract more buyers agents to get buyers into your home.

To directly answer you question, it all depends on the market, maybe the agents have all the listings they can handle, or maybe they are all starving.  Maybe the market is over-saturated with listing in this price range, maybe there are no buyers for this expensive of a house in your market thus creating whole set of problems for the listing agent. 

If it were me I would know the market to some degree of accuracy before I went in and started to negotiate my 3 million dollar house.

In short know what you asking the listing agent to accomplish how much work they will do and the potential problems with completing the sale first, then decide if the agent is worth less or more.

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November 11 2013
well, what you also can see is the answer to this will vary greatly depending on where one is located.

As mentioned, in my area, houses in the $500,000 - 1 million range are fairly typical, and no one would even think that number warrants any kind of special "discount".
In another nearby town, most houses are priced in the 1-3 million range, so there again - not considered "special" or unusual.
Once they hit the 4-7 million range, that subject might come up.

Apparently, in Tim's area, that (500 ish +) price range isn't as common, and might be considered "high end"....opening the door to sellers looking for some special consideration.

It all depends on where you are.

So User - where are you?
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November 11 2013
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I have worked in Property Development and in years past have been involved with very large deals and putting together properties.  I just wanted to see what residential agents felt about this. Thanks for the replies, I feel the one I selected was the most honest real life situation on properties like this.  However, I could see if it was an intensive marketing strategy and showcasing a large home where that commission structure might not be lower.  Again, thanks for the replies.
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November 11 2013
Does the agent also raise the commission on smaller sales?  
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November 11 2013
Well - it's not  so  common here

 I have no idea where you are, but.....no....in my area, it is not necessarily "customary" to "lower" the commission with a 1-3 million dollar home (certainly not with a $500,000 - 1 million home),  as that price range is not so unusual...and often more expensive marketing is requested and days on market can be longer.


That being said - all commissions are negotiated between the seller and their agent.
Interview a few agents - ask for a written marketing plan......... and see what they tell you in regard to their fees.

Best wishes..........
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November 10 2013
I can tell you a seller selling a $3 mil or $1 mil or $500k property will often ask an agent if their company would reduce their charged commission. I can also tell you an agent and their company will often agree to that reduced commission to get that listing.It is quite common.

tim
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November 10 2013
Your sellers agent is doing the same job whether the sales price is $100,000 or $1,000,000,000. There is a lot of work that goes behind marketing a home For Sale. Some agents may offer to lower their commission in order to gain the listing, but if your agent starts negotiating his or her commission from the start, do you really want that same agent negotiating your money away?
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November 10 2013
 
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