I have seen seller's commission rates of between 5% and 12% during the years I have worked in real estate.
If we're selling a Wellington home that's worth $2million or more, realtors are more likely to consider working for a lower commission percentage.
However, if we're selling a condo in a community whose values have fallen to $50,000 or below, agents may ask for a far higher commission in order to justify the time it will take them to work on that sale.
Oddly enough, it usually takes much more time and effort to sell a $50,000 condominium that it does to sell a $500,000 or a $5 million condominium. The same applies to single family homes.
The reasons are all financial: for the seller and buyer of expensive real estate, the transaction usually represents a fraction of their financial ability. But typically for the seller and / or buyer of a lower cost property, this piece of real estate represents a very large part of their financial picture.
Because their worry factor is higher, the time spent on the transaction is greater. And it is our job, as agents, to give our customers the time and attention and information they need in order to make the absolute best decision for themselves.
That is why we often charge far higher commission percentages (but not higher amounts of money) for less expensive properties.
Marc Jablon, the Jablon Team
Re/Max Complete Solutions