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LOL!! Are you serious? I just looked at your profile...Why would your post a question like this? With your background, possibly you know way to much and so everything appears too simple? Or is this just to start a dialog?I personally treat every transaction the same with a degree of social expectations being different by consumers and clients of their agent, but as the dollar value increases, so does the liability and risk and knowledge. If I charge $2K for a mobile home and the same for a $5M dollar home, will the court limit my liability to that dollar amount when I get sue for whatever reason?The million dollar property has a much smaller pool buyers and many of them have a unique taste that is different from those that are looking for a typical medium priced tract home or mobile home on a permanent foundation.I took a person around Perris for a couple of weeks to find a mobile home and it was extremely competitive, but we found her one for $57K. I made $1,650 before my broker's cut, my liability was $5,500 if I got sued.I spent two weeks driving around a couple from six in the morning until midnight, looking at houses from Chula Vista, Downtown San Diego, La Jolla, Del Mar, Laguna Beach, Newport Coast, Newport Beach, Corona, Yorba Linda, Beverly Hills, San Marino, Arcadia, Costa Mesa, Irvine and Palm Springs.These were Multi-Million Dollar Homes and 90% were shown by appointment only and with the listing agent present.It was only after locating the second home we placed an offer on that I was able to get an offer accepted, which had two others, all cash like ours, that the job even stated to begin to take some shape.If this deal would have fallen apart, it would have been a very big hit.All the knowledge that had to go into play on this transaction could have been pretty expensive if it were not for my background. Especially when a suspected roof issue popped up and another agent said to get a roofer on the roof and check it out by moving tiles around.A four year old multi-million dollar home and she said to do that... Like I told her, let anyone step foot on that roof and move tiles and you will void the 10 year builder roof warranty.
No one wanted to believe me and fought me on it until the builder themselves confirmed it to them, which ticked off a few, but my client's roof warranty remained in effect "after" the builder climbed on the roof to checkout "their" work, and really didn't care what anyone else thought because I wasn't going to be sued and my client was protected..I can go on and on about this, but I am sure you know exactly what it takes to do one or the other and what is required to make a sale.
Spread these two transactions and they pretty much would equal themselves out. So, I would say I earned my money on both of these examples and both homeowners still sit happily in heir homes to this day.
Interesting that an agent would post a question like this, apparently never had a transaction within the million dollar range.It has to be a form of farming, but in my opinion, it is backfiring. Exposing inexperience... no offense…There must be a reason that these very well informed, seasoned, multimillion dollar homeowners list with agents and are paying out the commissions they do. They didn't get where they are today by the seat of their pants.There is whole list reasons, and many have already been posted here and there really is know reason to educate an agent when there are so many materials out there to help appreciate the work and skill that goes into selling any home at any price.If your agent is baffled why he is worth the money he is being paid and why others charge so much, suggest they hit the books, because there is much more to real estate beyond getting a license.
An agent is licensed to protect the public interest. Failure to educate themselves is a critical breakdown and exposes their client and others to possible liability. You can pull the trigger five times in Russian Rolette and survive… Maybe… or pull the trigger once and have a bullet to the head.There is so much more involved in selling a property than just going through the motions. Sign here, sign there, where is my check? YIKES!
In this case, yes, I agree with the original post, because you will have to save up for potential legal cost and a bunch of Rollaides from the panic everytime someone knocks on the door, thinking someone is there to serve you.
Without the education, the world does look a lot simpler. Why do attorneys get paid different levels for he exact same job? A divorce is a divorce, right?It is all about results...There is more to flying a plane than just flipping on the ignition...
Lets First break down the $60,000 dollar commission. The buyers agent will receive half of that leaving $30,000for to the list agent. Forget the fancy car, marketing a million dollar home is expensive. Luxury Magazines charge $1,000 per month just for half a page. Dont forget we also have to include Luxury magazines in other markets. Your buyer may be purchasing a second home from another market. Ever heard of the Rob Report? Its a luxury magazine and not cheap to advertise in thier magazine where the reader has a high net worth. A million dollar home requires a professional photographer to take photos with staged lighting to make the house look its best. Not to mention the hours you spend driving to the property to show the home to prospective buyers since million dollar listings are shown by appointment only. Now with all tha that advertising and time spent arent you worth the 3%? I would certainly say so
sorry having problems with post
OK Agents: Your rich uncle wants to sell his beach house compound. There is the Beachfront home worth $5.5MM and the Guest House worth $450K. Problem is he's got both a niece and a nephew in the real estate biz. He's going to sell the houses separately and he's giving first choice of listing to you. But to be somewhat fair he's offering a $250K commission on the Beachfront house and a $45K commission on the Guest house. In each case he insist you offer a 3% commission to the buyer's agent.Which listing do you choose?
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