348 views
Greg Broiles
- 11 Helpful Answers
- 12 Answers
- 1 Listing
Locations:
Profile Link:
Certifications
& Awards:
& Awards:
BA, University of Redlands (Johnston Center), 1991
JD, University of Oregon, 1996 ... show more
JD, University of Oregon, 1996 ... show more
About:
I am a licensed real estate broker and attorney in San Jose. I enjoy solving problems.
Greg Broiles answered:
Don Tepper -
In the SF Bay Area, it is relatively common to see commission rates differ for transactions of different size - smaller properties or bare land typically have a higher commission rate, while higher-end properties - say > $1M or so - typically have a slightly lower commission rate.
I ran an analysis using historical MLS data regarding commission rates for homes in the $750-$1M range; I didn't see any correlation between higher/lower commission rate and the time on market or the delta between asking price and selling price, so my conclusion is that a relatively small adjustment in the commission rate (.5 % is typical here) doesn't have a significant impact on the behavior of buyer's agents.
I'm not a statistician, YMMV, and all of that - but I found it interesting (and a little surprising).
Ultimately, for better or for worse, commissions are typically negotiated and paid outside of the relationship between the buyer and the buyer's agent so it's tough for buyers to get a lot of information about them, or to have a lot of leverage to change commissions.
In the SF Bay Area, it is relatively common to see commission rates differ for transactions of different size - smaller properties or bare land typically have a higher commission rate, while higher-end properties - say > $1M or so - typically have a slightly lower commission rate.
I ran an analysis using historical MLS data regarding commission rates for homes in the $750-$1M range; I didn't see any correlation between higher/lower commission rate and the time on market or the delta between asking price and selling price, so my conclusion is that a relatively small adjustment in the commission rate (.5 % is typical here) doesn't have a significant impact on the behavior of buyer's agents.
I'm not a statistician, YMMV, and all of that - but I found it interesting (and a little surprising).
Ultimately, for better or for worse, commissions are typically negotiated and paid outside of the relationship between the buyer and the buyer's agent so it's tough for buyers to get a lot of information about them, or to have a lot of leverage to change commissions.
|
MVPs or 'Most Valuable Players' are key Trulia Voices members who have been contributing high-quality content throughout 2008 and providing valuable advice to consumers and real estate professionals.
|
|
|
Founding members are a small number of participants who submitted content at launch of Trulia Voices to kick off community discussions.
|
|
|
Your question:
Max. 200 characters
Name:
Email:
|
|
Share profile
Contact Greg Broiles
Greg Broiles is a member of Trulia Voices:
Get the inside scoop on your area and home buying and selling.
Ask and answer questions about real estate.
Build your profile and contact home buyers, sellers and agents.
Report this profile
|
|
|
|
|||||||||||
|
|
|
Copyright © 2009
Trulia, Inc. All rights reserved. |
Fair Housing and Equal Opportunity
Fair Housing and Equal Opportunity
Help us improve our service—send us feedback