I've had it with you implying that I'm a realtor hater. I don't appreciate being called a hater of any kind. You need to back it up with some evidence in my posts or apologize. I have had disagreements and misunderstandings with agents as well others on this site, but find me some posts where I attacked realtors in general on their ethics, educational requirements, or referred to them as lazy or incompetent. I wasn't going to dignify your previous post addressed to me with a comment, but you just have to keep it up don't you? If you are trying to draw me into resorting to name calling, it ain't gonna work. Just put up or shut up, and apologize.
Furthermore, given your behavior with other agents one has to wonder about you. I would bet I've given more thumbs up votes on deserving posts by your fellow professionals than you probably have.
which is where I am. :-)
... and I'm not sure why you would recommend a website like "homegain" that lists agents based on their willingness to join (pay) homegain for listing their names, and requires a referral fee for referring their internet inquires to you as "leads".
Most designations I know of have been created and are owned by or affiliated with NAR is some way. "
Well, let me enlighten you....
Definition of "designation":
"identifying word or words by which someone or something is called and classified or distinguished from others".... (nowhere does it mention taking classes or paying a fee).....we're not talking getting a "degree" here, only a designation!
I clearly stated my designation as a PRUDENTIAL Fine Homes Specialist, which is a nationwide Prudential title or achievement........ In case you're not aware, most large companies and franchises have a number of specific designations they bestow upon their agents based on productivity or certain areas of expertise based on experience - none of which involve paying a fee or taking a class. .
Without leaving NJ........ how about the NJAR Circle of Excellence Award - a statewide desgination based on productivity? I have the designation of .... NJAR Distinguished Sales Club ......earned by those achieving the Circle of Excellence Award for a minimum of 10 years......no classes there, no fee.(other than paying for the plaque)......maybe that's not a designaton in your personal myopic definintion, but to most it is..........I could go on, but I won't......
I'm not sure why you felt the need to nitpick over my use of the word designation - I was only referencing my experience in the luxury market in response to YOUR comments regarding how that niche market is handled, and what those agents do or don't do..... you made a lot of comments and authoritative generalizations I could have taken issue with, but chose not to...........
You must have a lot of time on your hands to take each one of my sentences and break them down with specific commentary.
And for the record, I wasn't being patronizing - I genuinely think you are enthusiastic and well intentioned, and I do appreciate when you stick up for Realtors, even if it's not the style I would use.......if you want to see negativity in everything I said....that's your prerogative.
Finally - in regard to the anti trust laws - here is an excerpt from an article discussing it:
"Agents and brokers in any setting, business or social, should take great care to never even discuss commission rates in any context. It's much better to be safe than sorry in this case."
"Never use the word "standard" or "prevailing" when describing your fees and services"
Your words........." I wouldn't expect any kind of decent marketing from a reputable broker for less than 4% ".......so, you don't think that's stating what a "minimum" commission should be????
No need to respond - it was more of a rhetorical question...........
I wish you well, and have no desire to further engage in this banter ..........and no, that wasn't facetious nor patronizing......just honest.
Also, I'd be careful of listing a specific percentage as you did - especially when you say that any "reputable broker" woulldn't charge less than the amount you deemed proper.
I would tend to agree that long explanations here are wasted - why not follow your own advice? I really don't mean to be disrespectful, but your responses tend to be rather verbose, and I am sure, as a result, your points may be missed.
We all mean well here, and we all try to help.
Differences of opinion are to be expected - how great it is that we can all express ourselves!
I am sure Sandy has all the information needed to make a decision.
Best wishes sandy!
"it is in your best interest to offer a competitive rate to appeal to more buyers agents who will in turn introduce more buyers to your property"
Sandy it seems you are in a weak position to negotiate the Commission on your "over a million dollars" home if you want Buyer agents to show it to the people they represent.
Appears ya best not try to lower that Commission, instead try to remember that
"Commissions are to some degree negotiable" unless you are hoping agents will actually show your Home.
Our "agreeing" on a commission would be "price fixing" and that is against the law. Sorry.
Would it be better to pay a higher commission (7% +/-) and sell the home faster?
Or to shave $40,000 off the price of the home and spend $1,000 on the biggest sign your front yard can fit and to sell it fastest?
No one will work for nothing.
Anyway.....as noted, much of this depends on the area you work in,. Million dollar homes are not an unusual price point in the area I service, so the efforts to promote these homes aren't as astronomical as might be the case in areas where this price range is rare. I just sold a home for over 3.3, and basically just being on the MLS and internet sold it (plus, of course,, my extraordinary negotiating skills ! haha).
As far as costs go (not that the consumers care), we have virtual tours done for most of our listings whether they be 400,000 or 4,000,000....that cost is fixed and nominal....the photographer takes pictures of every room as part of the virtual tour package. So, when working in an area dense with luxury-priced housing, the marketing becomes rather standard - everything is relative.
As I said - it all really depends on where you are as the pool of high end buyers is more plentiful in areas that have an abundance of high end homes.
As far as sellers understanding what we do...well..... after working with us, they SHOULD understand, as they have seen it first hand (and then they can spread the good word)!!
I am sure you are a nice gentleman, and I appreciate that you try to stand up for Realtors when you see the need. That being said, sometimes you just need to take a breath, and try to see things from someone else's point of view, even if you disagree. You seem to get very worked up, and that can't be good for your health!
It's not "us" against "them !
I try very hard to rise above that, and be straightforward and fair in my responses, so that I don't play into the negative stereotypes that some have surrounding Realtors. I accept that you can't please everyone.
Also....I don't need to be lectured on the "luxury market" (nor, I imagine, does anyone else here care to be, as that subject has been beaten into the ground by now ) For the record, I am designated, because of my experience, as Prudential "Fine Homes Specialist", so I am more than familiar with that market. Even with that designation, however, I do not hold myself up as an authority, nor would I speak for the various high end markets in areas other than my own. Enough said on that!
In regard to your comment about commissions - Yes, I was trying to warn you that stating " X% is the minimum a "reputable broker" would accept, in my opinion, is walking the line (and perhaps crossing it) in regard to the anti-trust laws - but, to each his own .....you are certainly free to type whatever you want.
I am done with this thread, as I have nothing more to add, and I think everything that can be said , has been said.............See you all somewhere else here on Trulia!
Have a great week.............
Please don't put words in my mouth, I never even hinted to charging a "higher" commission for higher priced homes to cover advertising costs. I am assuming Sandy is however looking for cheaper fees. If an agent charges 3,4,5,6,7 or whatever % as their norm, keeping the % the same is charging the same % and although in the end the figure is higher, so are those expenses so keep things in perspective."
I didn't see where Dunes posted anything about the relationship between commission and higher end homes. It would seem to me that you are putting words in his mouth.
Secondly I will stand by my post on the subject. However, your statement "Bottom line is you can't shop for champagne with beer money" does tend to finally get to your point. I just think in all your ramblings it's very easy for someone to interpret you as trying to justify a higher commission for higher end homes. Hey, but maybe that's just me.
I really don't see the rationale of a higher commission because of increased marketing costs for million dollar plus homes. It just seems to me that the greater commission that comes with their sale more than makes up for the additional cost for several paged full colored brochures or magazine ads. That being said, when my son puts his million plus home on the market in the next five years or so, I will recommend that he goes full service, but pay no more than from 4 to 5 percent.
What I care about is that "Commissions are negotiable" between consumers and the agent they decide to work with. What bothers me is this.....
"If you lower buyers agent % your home won't be shown or limited showings. " as it suggest there is some standard set commission and if a consumers should attempt to negotiate below it then the property will not be shown..
6% may have been a Traditional Commission but it is not the Standard or Set Commission and to say that Commissions are negotiable means in both directions (Higher or Lower). To suggest otherwise is what bothers me.
I have paid Higher and Lower than 6% as each Transaction/Situation is different and I recognize that , but the opportunity to negotiate in both directions is important. The market changes, the services change and the competition amongst agents changes so I view the negotiation of Commissions as an important part of maintaining Competition.
Agreements about Commissions with buyers should have been completed by the time an agent reaches the serious property showing stage and the buyer should be made aware at that time that the agent will not work for less than X so the buyer will have to make up the difference if the seller of the property offers less.
Buyer at that time can agree or not but negotiations are taking place openly.
Sellers also have negotiated a % to have their property listed and while it may be common to say they pay the entire Commission amount for both participating agents I'm not aware of any legal requirement to do so.
A buyer knows what their agent wants and agrees or not (Negotiation) and a seller knows what his agent wants and agrees or not. (Negotiation)
There are agents willing to work for less and that's part of Competition. How is continuously stating that all those agents are not as good in providing services or of lesser ability any different than saying those that charge more are greedy rip offs. It's all BS!
It's about Competition and if you can't compete then a career change may be needed.
The Consumer is only concerned about getting the best deal for them and that's just how things work.
Keep in mind that the commission you and the broker agree to will typically be split between the listing broker and the broker who brings the buyer; as such, it becomes a component of your marketing. Buyer's agents have been known to steer their clients away from homes with commission offers they consider inadequate.
As others here have suggested, interview several agents and explore not only their commission structure, but what they will do to earn it! I'd be pleased to be considered as one of your candidates.
Best of luck
I still don't put much faith in designations alone however I do commend the agents that work to get them.
It's better they are at least investing in their careers and must get "something" out of it. NJAR circles of excellence awards and others like it where you need to have a minimum production but also get points for attending a diversity class or give donations I'll bite my lip on. I've come across agents touting their Circle of Excellence award winners when they never were, only one way to find out and that is to call NJAR. I've also seen many of these agent only get their awards because their brokers played with "who earned the closings" to get people awards they didn't deserve. I've also seen many agents taught themselves as the #1 agent, then if you probe more it is "in our office for..." lol... I'm sure you've seen it to. (Marketing Spin)
The only designations I really like that teach agents well are the GRI, CRS (to a lesser degree), most commercial ones and that's about it, the rest are pretty much fluff but I suppose someone who is totally inexperienced can learn a lot from them. (Any training is a good thing, bragging about finishing a day long class or correspondence course is what I find pathetic)
I understand what your talking about with the find homes type designations from franchises however unless they are strictly awarded based on production AND completion of extended in classroom courses don't find most to be impressive.
Please don't take any of this as a personal attack, I'm talking generalities here pertaining to the designations.
"And for the record, I wasn't being patronizing - I genuinely think you are enthusiastic and well intentioned, and I do appreciate when you stick up for Realtors, even if it's not the style I would use.......if you want to see negativity in everything I said....that's your prerogative."
If that is the case I do apologize, lately I've been on the receiving end of quite a few attacks not the type to back down so have been quick to respond and look for the negative in comments. It does seem to be the fairly dominant ongoing theme here in trulia blogs.
"realtor haters" on the site are pathetic and I've been stooping to their level responding to them. I complain so much about these people because there seems to be so many of them but as I've discovered, many of these people have multiple profiles making their numbers seem greater than they really are. This would be impossible for anyone just stumbling onto trulia to figure out or understand.
Some "haters" claim their not, but their tone in comments and repetitive negativity and wise alec remarks tell another story. With having no recourse to this behavior making our profession look bad coupled with deceptive profiles pretending to be agents it seems to be an uphill battle trulia itself doesn't appear too prepared to deal with which is frustrating.
Sometimes I come across agents which are no better, denigrating other agents like school yard bullies to make themselves look better thinking they'll get business from this site. (as if they need to fight over it)
Perhaps I should keep it lite and not get too deep into conversation with these "people" since responses seem to turn into attacks anyway. It's hard to win against cowards that throw rocks and run if you get my drift.
Guess I've been on the defensive lately and apologize if you've been sincere. I'm sorry if I have misconstrued any of your comments. I've had a few days off trulia and boy did I find this busy time working to be a relaxing and refreshing breath of fresh air, go figure.
But you have to consider that you will possibly coushing it with an additional 3% for closing cost as well.
Buyers no matter how well of they are will ask for closing cost.
The reason brokers offer 6% for full service (which is negotiable) is that the broker will advertise in local papers, hire website builders, professional photographers (for listing pictures) and brochures.
Like I read earlier, you get what you pay for.
Jes Sierra, B.Sc.
That's a sign to pause before you get all "worked up", that can't be good for your health.
@ Getting "worked up"
I don't get "worked up" about anything spoken about here, just "verbose" in my responses I suppose ;-)
@ "I am sure you are a nice gentleman, and I appreciate that you try to stand up for Realtors when you see the need. That being said, sometimes you just need to take a breath, and try to see things from someone else's point of view, even if you disagree."
Please don't patronize me, beginning with a compliment followed up with snide remarks isn't witty or polite.
@ Lecturing Debbie on the luxury market
Plainly put, I haven't lectured "you".
FYI... my previous post wasn't dedicated entirely to answering yours. Most of the stuff in the middle was generally speaking and not directed at anyone in particular.
@ "For the record, I am designated, because of my experience"
Out of curiosity exactly what governing body or entity gives out designations based on experience and not for taking a class and paying a yearly fee to keep the designation title?
Most designations I know of have been created and are owned by or affiliated with NAR is some way.
@ "Yes, I was trying to warn you that stating " X% is the minimum a "reputable broker" would accept, in my opinion, is walking the line (and perhaps crossing it) in regard to the anti-trust laws - but, to each his own .....you are certainly free to type whatever you want."
Well thanks for the permission to speak, or "type whatever you want", not that I was asking but thanks anyway. (Wait, in your last post you told me NOT to lecture anyone!)
Please don't chastise or patronize me for answering a questions, I don't need to be lectured either.
Anti-Trust is when a group organizes to try and "set" pricing standards to limit competition. Where exactly in my posts did I do that? Talking about commissions is allowed (Free Speach), talking with your peers about it in closed sessions and colluding with them to create a standard is not.
I'm not trying to "set" any commission standards, nor working in "collusion" with anybody or conspiring to do so. I apologize if you were so easily misled and hopefully this post clears it up better.
(commissions ARE negotiable).
Agents make it taboo to talk numbers in public, that isn't illegal. Talking about it in private in an effort to set a "standard" is. So to reiterate, Let me be clear, commissions ARE negotiable and there are NO "set standards" in pricing, that is illegal and a violation of Anti-Trust laws.
All that being said, Nothing I've said even hints of that, I've spoken of averages and probable minimum to expect in my experience from a reputable firm. Was that a bad choice of words? Perhaps but by no means was any price fixing suggested or intended. I did however say "repeatedly" that you get what you pay for just as did several other agents. After all the cheapest is not always the best right?
You can't expect champaign for beer money, at least the good stuff.
@ "It's not "us" against "them"
I suppose I'm just passionate about what I do and don't care for it much when "the haters" spin realtor comments into a campaign of reasons not to buy real estate (usually with undisclosed ulterior motives) or a rant about reasons to hate Realtors.
I don't care much for confrontation but won't back down from it either.
(Maybe online I should as it's usually more trouble than its worth)
I am done with this thread as well and have nothing more to add, I think everything that can be said , has been said as well.....
I live in Miami, Fl. and am affiliated with the Christies Real Estate company here. We are owned by Berkshire-Hathaway and are considered one of the finest companies in South Florida.Our market has been a tough market for selling, especially the 800K-2M price point, actually a "mid-range" in many locations here. Commissions are dependent on what an agents company will allow to be negotiated. In a market such as this, much time, effort and money is spent marketing and showing a 1M plus property. (we do not use lockboxes here, we usually accompany all showings) Agents work hard for their compensation. I would contact various companies in your community and see what their response is. Remember, the cheapest is not always the best!
The alphabetical list you referred to was related to showing brokerages rated as having wealthy customers and not so much the brokerages performance or marketing programs.
For actual top ranking Luxury Real Estate Marketing firms see the numbers in the Web References link attached at the bottom of this post.
I didn't specifically name "Prudential, Century 21 and Coldwell Banker (among others)" because out of all of the top ranked luxury firms they were not at the top of the customer satisfaction among luxury clients and having the best luxury marketing programs.
Excerpt from Luxury Customer Experience Index:
"The Luxury Customer Experience Index surveyed high net-worth clients in four major areas: effectiveness of meeting customer needs; perceived price worthiness; customer retention/loyalty, and customer referral. GMAC Real Estate earned a score of 68.4; Sotheby's score was 73. RE/MAX trailed GMAC Real Estate in third place. Other real estate firms included in the survey were Century 21, Coldwell Banker, ERA and Prudential."
Luxury real estate is a niche for agents to specialize such as senior housing, new construction, commercial real estate, leasing and property management, etc.
It's usually left up to the agent as an option among most brokers for an agent to enroll the properties into niche marketing programs their franchises may offer but even then, there are usually restrictions and hefty expenses left square on the agents shoulders to burden. Needless to say many agents cannot or are unwilling to spend the cash required to market the single luxury listing they have properly.
(Statement is non agency or franchise specific)
It's a niche market and the resources required to market them properly are maintained by a select few dedicated agents who specialize, some specialize in more than one niche.
Keep in mind some of the luxury marketing sources will not allow just any agent to use their service unless they have proven themselves first with "x" amount of closed luxury sales in the last "x" months.
About being verbose...
I admit I can be and is usually the case when I'm forced to quote the negative peeps in my responses. I like to include a lot of detail, sometimes it can be boring and my downfall but for those interested I'm sure they appreciate the additional info.
"Also, I'd be careful of listing a specific percentage as you did - especially when you say that any "reputable broker" woulldn't charge less than the amount you deemed proper."
Are you disputing what I've said or just warning me that quoting a number can provoke an attack from the guy that gave you a thumbs up on your reply dedicated to mostly to me?
Yes it is great "that we can all express ourselves" (that includes me right?), I just always seem to be the one censored or given warnings by you guys! ;-D
Sandy, commissions are negotiable but I wouldn't expect any kind of decent marketing from a reputable broker for less than 4% depending on how much over 1 million your home is, where it is, the local market, condition of property and types of marketing needed plus average marketing times for the area.
Absorption rates are very important, ask the agents you interview what the absorption rate is for homes in the same class as yours and do not give a shorter listing than that rate as the absolute minimum.
Sorry about all the back and forth in these blogs but as you can tell there is something of a rivalry between Realtors and people who constantly attack them for their own undisclosed reasons. Many of these guys are stock brokers, gold salespeople, speculators and others that do good when real estate does bad so they try and influence the markets through a lot of negative speak on sites like this.
FYI: ask the agents you interview, how many million plus homes they have recently sold.
Check out the rankings of brokerages dealing in Luxury real estate on a regular basis. Assuming your million plus property is considered a luxury home in your particular market.
Also I should ask if you are under water / behind on your mortgage or having trouble making the payments?
Most people I come across in the million plus market tend to be more discerning people that look for quality and what you get for the money rather than the cheapest possible service to use. Many million plus home owners are experiencing financial difficulties along with the rest of the US and if this is the case, you should seek out a luxury marketing specialist with short sale experience.
As far as seller ratings Sotheby's International Realty, GMAC Real Estate and RE/MAX franchises have been ranked by the NY Based Luxury institute as delivering "the best customer experience" and customer satisfaction as rated and ranked by their own high net worth clients.
luxuryinstitute.com & J.D. Power & Associates can back up these ratings as well.
Here are a few Luxury real estate marketing resources online:
uniquehomes.com http://www.forbes.com/lifestyle/realestate/ http://www.christiesgreatestates.com/ http://www.christiesgreatestates.com/magazine/ http://www.luxuryhomes.com/ http://www.gmacrealestate.com/luxury-homes/luxury-real-estate.cfm http://www.luxuryhomemarketing.com http://www.luxuryportfolio.com
Good Luck in your Realtor search....
Puttin' words in my mouth again! Why can't the realtor haters just make peace and get along.
You can spin it how you like, I'm not going to argue semantics with you whether I'm trying to justify higher commissions or explain the concept of how you get what you pay for works. I tried to explain how brokers must offset their expenses but you brush it off and dismiss it too easily because you have no interest and would rather just stay on the attack. Let up already.
Wanting Champagne for Beer money is the best way to get the simpletons on the attack to understand since the long explanations don't seem to work.
"I didn't see where Dunes posted anything about the relationship between commission and higher end homes. It would seem to me that you are putting words in his mouth."
You're right, sorry about that Dunes that should have been directed at Rockinblu
"I really don't see the rationale of a higher commission because of increased marketing costs for million dollar plus homes."
First who is ("raising" or charging "higher commissions") the percentages charged remain the same or are lowered depending on price of the home and other factors.
Then there isn't much to say, if you can't understand that an agent / agency income must cover the "increased marketing costs for million dollar plus homes" then it's a lost cause trying to explain it to you. Income must be greater than the expenses or your losing money or working for free. Nobody works for free so you shouldn't expect realtors to either. That's all I'm saying bro...
"6% may have been a Traditional Commission but it is not the Standard or Set Commission"
I agree, there are no "Standard" or "Set Commissions", No argument here.
"There are agents willing to work for less and that's part of Competition. How is continuously stating that all those agents are not as good in providing services or of lesser ability any different than saying those that charge more are greedy rip offs. It's all BS! "
No BS involved at all, those agents so quick to cut their fees are also the ones that will be very quick to try and convince that seller to cut their price when a low ball offer comes in that may be below the current market value amount they can actually get just to close a sale. These agents will also not be able to advertise as much, or in the right places because they won't have the resources to do so.
It ain't rocket science, if your income is less than you spend on the advertising and your cost to live (we don't work for free just for the fun of it ya know) then an agent / broker cannot sustain the business model. Therefore each agency must determine their costs and set their minimum fees accordingly, you getting angry because your agent wont negotiate below that number is just too bad. Go use the cheaper agent and stop complaining and being so angry, just don't complain when you don't get all the marketing exposure the other guy offers.
Your misunderstanding commissions being negotiable vs. an agent / agency having to negotiate their commissions, it doesn't work like that. The concept behind the negotiable idea is they can negotiate if they wish to and depending on their employment agreement with their broker. Its also to deter price fixing, meaning agents industry wide are not colluding with each other to set "standard" pricing.
@Rockinblu & Dunes
Please don't put words in my mouth, I never even hinted to charging a "higher" commission for higher priced homes to cover advertising costs. I am assuming Sandy is however looking for cheaper fees. If an agent charges 3,4,5,6,7 or whatever % as their norm, keeping the % the same is charging the same % and although in the end the figure is higher, so are those expenses so keep things in perspective.
Advertising in the "right places" does cost more and not just for the glossy higher end page printing cost but also for the publishers fees and the opportunity to advertise to the publishers upscale clientel.
Bottom line is you can't shop for champagne with beer money and anyone who understands advertising and marketing would understand how it works.
Paying for premium landing page ads also doesn't come free or cheap, doing so in many places, adding SEO optimization and PPC ads doesn't come free either if you want to direct the right kind of traffic to your listing web pages either.
I personally can't say where the next buyer will come from, my psychic abilities must be lacking so we must advertise to all prospective buyers print as well as web clients, sh.... we even do open houses and hand out fliers.
While some agents may opt for strictly web advertising, many older folks, executives or million $ plus buyers may not have the time or computer savvy to shop online and may browse the glossy magazines while in their down time like in the country club locker rooms, on a plane or get these mailings direct to their homes.
There are also many magazines which cover different areas and various demographics and covering the basis is more than just putting an ad in one magazine such as the real estate book, home source, homes & estates, homes & land, dupont registry and many others which will usually also put an ad in both web and print ads.
You should also keep in mind most higher priced homes typically take longer market times to sell so...
Short listing terms restrict the agent from wanting to engage in these comprehensive ad campaigns because of publisher deadlines and time, exposure, and time / buyer call to action.
Most agents will give a % off discount for much higher priced listings, the problem is many of these agents (Not All, some do specialize in these types of listings) never or rarely deal with higher priced listings and would give their 1st born for a listing like this and their judgment can be clouded and cause them to be more likely to go along with whatever pricing the seller may suggests which usually means over pricing.
I also never suggested most of what you rambled on about in your comment directed toward me so give it a rest. Commissions once again are negotiable and if it bothers you that an agent isn't willing to negotiate "their commission", that sounds like a personal problem. Go to another agent, (Not that you ever will use an agent, you talk down to them too much on trulia and have way too negative of a mindset to ever use one.)
As far as Advertising dollars go in relation to commission, and this is only to the listing side. It cost money to have your home featured on the front page of Realtor.com, showing up on all of the Gmail, facebook, advertisement and let’s not forget Google, yahoo ad dollars
Facebook & Gmail scan text for key words in conversations... up pops your home.....very cool.
I highly suggest being on Facebook, it works.
All home buyers are going to the Internet, The only difference is Your Million dollar buyers are sitting poolside with their laptops, and are not as likely to pick up the free "Real estate book" ( usually 6 weeks old info ) at the grocery store. Of course brochures are nice, however custom websites are better.
Any Realtor can place homes on the Internet, however putting the home on the landing page cost money.
40 billion pages, nobody ever looks at the second page.
Keep in mind your savvy Internet listing agent is putting out their money up front on the chance of selling your home, therefore, look at their risk reward.
It comes down to what are you getting?
As always get the plan in writing.
I have never asked for, nor received, a higher commission for listing an upper end home, and I have done lot of business in that range. I wouldn't even ask for a "higher" commission. The only concession I might ask for is a slightly longer listing period, as often the upper price range can take longer to market. Of course, this can vary by one's area as in my area 1 million is not an unusually high list price - but 2 -3 million is starting to get there, and those homes can certainly take longer to sell than the usual 6 month listing period allows. My higher end brochures and marketing costs are more than covered by whatever "normal" commission I charge and receive.
Call in a few local agents, and have this discussion with them.
Every area, every agent, every agency.. has different levels of service and commission structures. Work with the Realtor you feel will do the best for you based on their experience, marketing plan and...professionalism.
Prudential NJ Properties
That would be the best place to start and get an idea to see where you're coming from. Get that number, explain and rationalize it and write it down before reading further.
Keep in mind higher priced homes need to be marketed differently, in addition to the regular outlets the lower priced homes are marketed the advertising needs to be targeting a more affluent market which tends to be very expensive to advertise in.
Just like with homes in the lower price ranges, the million plus homes need to be priced properly, especially in this market to minimize those marketing times and attract a buyer that will buy your home as opposed to one expecting a million plus home and getting an $700K home. You can be sure this type of buyer would expect more than what is being offered and can rest assure they would not buy that property.
Higher end homes are for a niche market of agents that know how and where to market them.
Example: I would not give a million dollar listing to an agent that specializes in $150K condos
Although in theory the same concepts apply in the pricing of such properties, you must also consider the market you wish to target, current estimated amount of buyers in the price range within the area the home lies.
Location, condition, amenities, how well it shows are additional factors to consider.
Homes with lower expected marketing times (typically not high end expensive homes) could tend to see the agents be more willing to negotiate their rate.
Dunes is a one liner guy, I can appreciate how easy it is for him to be an arm chair quarterback just sitting back in his recliner at home pointed out a few realtor one liners that may not have been the best choice of words one can use and constantly attack agents using their own words against them.
These one liners are a bad idea for agents to use and singled out don't reflect so great on the real estate agent community. Realtors know they can't give one liner witty sounding comprehensive answers like the many people on this site which constantly attack realtors and portray them as greedy mongers simply because you cannot give a one line comprehensive answer that would thwart off these negative people.
Sandy always remember, you get what you pay for and if you expect more for less especially from a service provider that doesn't charge up front fees or actual cost plus a markup for each client (current law restrictions make this impossible for most agents to do). An agent must try and estimate what they expenses and their markup would be for each client, sometimes they win, sometimes they lose but there is always an overhead and a bottom line like any advertising and marketing agency which must be adhered to in order to stay in business AND make a living above minimum wage which you may be surprised to find many agents are not rich people when all is said and done at the end of the tax year.
Most of the real estate moguls you hear about are those that have invested in their own real estate projects in addition to being a real estate broker performing multiple jobs.
Back to your question, at the end of the day real estate commissions are negotiable but that doesn't mean that an agent has to negotiate their fees. Every brokers advertising and marketing costs and other overhead is different. Remember, you get what you pay for and in your case it is to have you home exposed to the most ready willing and able buyers for your home to fetch the best price in the shortest amount of time and to perform all the tasks required to accomplish this job and many tasks takes a team of people and a lot of up front money which comes out of the agent and brokers pockets.
Most real estate agents work on a performance contract basis. If your home don't sell, they don't get paid and end up out of a lot of cash.
Keep that in mind before you make your decision and not considering flat fee discount brokerages, I've seen residential real estate commissions range from flat fee of $10,000 payable at sale to a % charge of 4% to 10% and some including other bonuses they offer to an agency that brings the buyer.
Good Luck, if you'd like any further assistance feel free to get in touch.
If you lower buyers agent % your home won't be shown or limited showings.
As a listing agent for $1 mil+ homes usually listing agent works on your behalf for they have to meet buyer's agent and clients on property provide tours show all features of home. Build relationship with agents and their clients
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Commissions are to some degree negotiable, but if you truly want to sell your house as quickly as possible AND for the highest possible price, you will greatly benefit from choosing a Realtor that will spend time and money to heavily market your home. In addition, commission is typically split 50/50 between the listing and buyers agent and it is in your best interest to offer a competitive rate to appeal to more buyers agents who will in turn introduce more buyers to your property!
Inventory is way down in Rio Del Mar and Aptos and properties are selling very quickly compared to a few months ago. Now is a great time to list so your home will stand out.
You might want to use the blog attached to the link below. Good luck.
Hope you have success
First Team Real Estate
Erica Pittman-Gaynor with Keller Williams here. I agree with Diana completely. Although all commissions are negotiable, selling your house is a huge deal and not one where you want to shop for a 'bargain'. It is true that you get what you pay for. This is a tricky market for sellers. What you need is an Agent that has Strategies that work in this market to sell quickly for the highest price someone is willing to pay.
The majority of houses on the market are overpriced and sitting for a very long time, as they chase the market down. This loses the seller money day after day. In the month of May there were 543 Active listings that weren't Bank-Owned or Short Sales, that were on the market for an average of 162 days. These are overpriced listings. Good luck to you. Let me know if I can be of further assistance.
It seems to me that it really isn't about the commission but getting you the "highest possible price." Any realtor can discount, but are they willing to negotiate to get you what you want? I would love to talk to you about how I can get you the "highest possible price" even in this market. Please check out my website at http://www.isellsantacruz.com. I would love to be included in your "interviewing" as well.
David Lyng Real Estate