Profile picture for user33361453

How would the commission be set on a $6 million+ sale listing? What would be a normal, fair %

  • October 20 2013 - Naples
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Answers (11)

Profile picture for CallTheSisters
Naples Florida - 6 million price tag.  You need high end buyers.  Who knows how to attract high end buyers?  High end Realtors. 

Find Realtors who specialize in your segment of the market and interview them.  They will be your best guide to determining what a reasonable compensation is.
  • October 22 2013
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

You should talk to a few agents and see what they think, Naples. Around here in Seattle, commissions are pretty much the same percentage regardless of price point.
  • October 22 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for edboner
Normally, I would vary the rate or have a negotiated rate at a lower level for listings at a high price point.  You are looking, to some extent, at paying for a level of service.   That said, there is a topping out of effort, as the price goes up. 

Commissions are not "set" and are always negotiable.  There may be an "office" policy, but you will always find agents willing to discuss a variety of fee schedules. 

I would only suggest picking a professional full time agent with experience in your community. 
  • October 22 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for sunnyview
The fair commission would be whatever you and the listing agent agree to.
  • October 22 2013
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

As a Realtor since 1996, having worked with 2 different companies in Southern California, I've always been urged by my companies to get 6-7%, which is split between the brokers representing buyer and seller. However, commissions are negotiable by law. To use words such as "standard", "normal", etc., regarding commission rate, is illegal. This stems from the Sherman Antitrust Act of 1890.

Part of the commission you pay, usually half (but not always), will be offered on the MLS to any licensed broker who procures and represents the buyer. To get an accurate idea of what your competition is offering, request that your potential agents divulge how much the comparable market activity (CMA) homes are offering in commissions and multiply each by 2. That will give you a basis to decide.
  • October 22 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Nothing is normal in our industry.  Everything is negotiable, and every scenario depends on circumstance.  I would interview a few agents and see who you feel most comfortable with, and then compare the cost all the agents are requesting.

If you would like me to refer an agent to you down there in Florida, I would be more than happy to.  There is a very good C21 agent out there I have built a relationship with.

Best wishes from So-Cal and good luck 
  • October 22 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for j3350489
4% is fair for that large of a sale
  • October 20 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Adel, Brian,

I think Dunes is making a statement, not asking a question, read it again. I understand what you are saying, and I agree. I have had and sold some million $$ listings recently and they were lower than 6% for sure.


tim
  • October 20 2013
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for Dunes ..
"6% is industry standard"....Really?
Any other Realtors wish to use....industry standard for the %?

Commissions are negotiable...Different Agencies, options of Service ect..
Do some shopping keeping in mind your goals, difficulty of sale for that property in it's Market, it's price range..
It's your business transaction and you are hiring so shop & compare

DOJ Anti-Trust Web Site
"Over the past decade the average commission rate has remained relatively steady between 5.0 and 5.5 percent."

Lot of interesting & useful info on the DOJ Site, Commissions, Competing forms of Brokerage, Rebates, Fee for Service options, Laws in your State ect.
Worth checking out imo... Competition and Real Estate


RealtorMag...Quiz: Antitrust

 
  • October 20 2013
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

The amount of commission is not set by law and is always negotiable.
  • October 20 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

6% is industry standard with the commission being split with both the buying and listing brokers. However, with higher priced homes there is usually a flat rate negotiated with the owner of the home and listing broker. Hope this helps.
  • October 20 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.