What is the average realtor commission for land deals if the agent is representig buyer & seller?

  • October 22 2011 - Navarre
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Answers (11)

Profile picture for OlivetteCraigDettor
These comments have been helpful.  Dealing in land sale before, the agent represented both buyer and seller, primarily the seller.
  • April 15
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It was two years ago, as well. One million licensed agent/brokers in the country, six responders, make of it what you will.
  • January 26
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Profile picture for sunnyview
"Five of the seven responses missed the question and responding with "how the commission is set or agreed upon", not "what is the average commission".  "

I understand your point, but the responders did not miss the question, they are not allowed to answer it without breaking federal anti trust laws. Commissions vary. They are fully negotiable by law.

That being said I have never seen a commission in any area of the country I've ever lived below 2.5% or about 7% of the sales price. The most common commissions that I see on my local MLS in my current area are 5 or 6%.
  • January 26
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Profile picture for iamefg
Never seizes to amaze me how many people respond to on-line questions without properly reading what the person is asking.

The above is a clear example: "what is the average realtor commission for land deals if the agent is representing buyer or seller".

Five of the seven responses missed the question and responding with "how the commission is set or agreed upon", not "what is the average commission".  
  • January 26
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Derek Zasaretti is correct.  The listing agent or broker and the seller negotiate the listing compensation.  Once that amount has been agreed on, it will not matter whether the buyer is brought in by the listing agent or another agent, the listing compensation will remain the same.  If another agent brings the buyer, then the compensation is divided between the listing broker and the broker working with the buyer.  Otherwise the listing broker keeps the entire compensation. 

Some states allow dual broker agency, but most do not.  In Florida, dual agency is not legal.  We mostly work as transactional brokers, so we represent the transaction and not the individual.  Otherwise, we are single agents or non representation.  As a transactional broker, we can work with both sides of the transaction.  Hope this helps!
  • October 24 2011
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Profile picture for JoshBarnettREIB
Commissions are agreed upon at the Listing Appointment.  Land Commission could be as high as 10%, 5% both sides, depending on how isolated the property is, if the property can support crops or livestock and if the property is being sold w/ or w/o the mineral rights.

Good Luck,

Josh
  • October 23 2011
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Dear Carmel,
Commercial Brokers are the one's who work with Raw Land and their commissions vary depending upont the location and zoning of the land in question. Commercial Commissions are quite a bit higher then residenial and for land, you can expect a listing period of at least one year, or more.
Land is very slow to sell and you need an experienced Brokerage to sell it.
  • October 23 2011
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There are a few determining factors in setting an agreed upon commission between seller and listing agent.  There are determining factors in setting the commission.. is the property commercial, residential/development, rural.. is the seller setting a 'motivated price'.  A listing agent can bring an interested buyer to the property but must disclose that he is either a dual agent representing both seller & buyer in states where this is allowed or disclose his sole representation is to the seller.  The commission typically remains the same whether split with another agent or if the property is sold by the listing agents single efforts.
  • October 22 2011
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Profile picture for SoCal Engr
If the seller is any kinds of intelligent, it's less than the full commission for different buyers/sellers, but a little higher than just the listing commission. And, those commissions should have been negotiated upfront, as part of the original listing agreement.
  • October 22 2011
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Most likely he/she got 6%. Its possible it was more or less but "most likely" it was 6% of the sales price.
  • October 22 2011
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The commission is negotiated between the seller and the agent. There is no "set" rate. Dual agency must be disclosed by the agent whenever it occurs.
  • October 22 2011
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