Market Conditions in Albany>Question Details

lcookwestphal, Other/Just Looking in Albany, NY

what is the range of commissions you can expect to pay to a realtor when selling land in the capital district?

Asked by lcookwestphal, Albany, NY Mon May 14, 2012

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To further discuss your land call me
Andy MIronchuk
Bethlehem Realty Associates
518-858-4447
0 votes Thank Flag Link Mon May 14, 2012
The sale of land in the capital district or anywhere is much different than the sale of a house. There is a lot of "ground work" that needs to be done prior placing land on the market. The most important of the preliminaries is to determine the highest and best use of the land, the zoning of record, proof of absolute ownership by the seller and that the seller has warranty deed, clear marketable title and boundaries can be defined,proven and displayed on paper as well as at the site. Preferably the boundaries should be marked or staked prior to offering the land for sale. After the establishment of these items that I mentioned, a price must be established that is fair market value. Along with this research comes a formulation of who the right buyer will be for the land, ie a business, a developer, a private individual, a franchise, a builder, or a speculator to name a few. In most markets the comparable sold properties are not easily found. The seller and the broker must work closely to determine a price that is competitive and will be attractive to buyers in the marketplace. All of this must be done before the land is even listed by the broker in order for the broker to be able to respond to inquiries with competence. Land sales are usually a long involved process and listing time can be up to 2 years. That's why pricing is crucial. Many realtors work for firms that have a set commission for land but others will be able to negotiate their fee. Some realtors will represent you in the sale but will require a retainer in addition to a commission based on the selling price. The highest commission I have seen lately is 10% which usually includes a 4-5% sub agency commision payable to the broker that represents the buyer. .
0 votes Thank Flag Link Mon May 14, 2012
Commissions are always negotiable between you and your agent, there are no set standards as it would go against Federal Laws, see link below; therefore interview in person a few local agents from different realty companies, then choose the one you like best; choose your agent with care and not by commission alone.
http://www.justice.gov/atr/public/div_stats/276198.pdf
0 votes Thank Flag Link Mon May 14, 2012
I work just west of there and handle only country property with acreage. I normally charge between 6 and 10%, depending upon how you want me to work, which means the seller and I need to discuss that a bit between us. Most folks opt for the lower figure. If I also sold it to you, I go 1% lower. I like to think I am at least competitive with others even though we never discuss commission rates between us. Remember, you often get what you pay for. If someone offers a deal to good to be true, that probably is just what it is.
0 votes Thank Flag Link Mon May 14, 2012
thank you so much!
Flag Mon May 14, 2012
Brokers are not aloud to discuss fees in an open forum. Consider meeting with a couple of local professionals to discuss the value and services they offer, and what the compensation is
0 votes Thank Flag Link Mon May 14, 2012
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