what is the average real estate commission for $2M homes in Orlando Florida?

Asked by Timeout, Orlando, FL Tue Oct 27, 2009

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9
Mark LeMenag…, Agent, Lake Nona Orlando, FL
Wed Oct 28, 2009
In direct answer to your question, there are 214 homes in Orange County priced between $1.5 and $2.5 million today. The mean, median, and modal commission being offer to buyer's agents is 3.0%. Multiply by 2 and without a doubt the mean, median, and modal total commission paid by the seller is 6.0%.

As was noted, properties in this price range take a long time to sell. The avarge time the above properties have been on the market is 9 months, over 1/3 have been on the market for over a year, and 10% more than 2 years.

There have been 53 sales in this price range YTD, so the inventory equates to over a 3 year supply. Also, virtually every sale was at the above mentioned 3% buyer's agent commission and over half the ones that sold were on the market more than a year. (6 of them took more than 3 years to sell.) Finally, not one property sold for anything close to it's original asking price.

Good luck,
Mark LeMenager
Weichert, Realtors - Hallmark Properties
1 vote
Broker Dave, Agent, Orlando, FL
Tue Oct 27, 2009
Commissions are negotiable and not set by law; now having said that most try to get 6 to 7 percent some higher. There are companies that offer café style services and based commissions on level of service you require. I walk on this 'dark side' and discount my services as today it’s more about the internet than about the company.

The last statics I read on the subject stated that 60% of the time the home listed for sale is sold by a Real Estate Company not associated with the listing Real Estate Company.

The internet is leveling the playing field between the small mom & pops and the big companies making competition for buyers easier.

Let me know if I can help with more information and visit my website (please pardon the dust it’s currently going through a redesign) for a Free Market Snapshot,

Broker Dave
GRI, ePRO, GREEN

Visit my profile located here on Trulia, its simple just scroll your mouse over my picture and click.
Web Reference:  http://OrlandoHomeStore.com
1 vote
Broker Dave, Agent, Orlando, FL
Wed Oct 28, 2009
Statistic: 70% of Buyers start their search online before having contact with an Agent, (new home buyers make up a larger part of the remaining balance and FSBO a smaller part).

The search starts with a location, then price, next is features. Once they find homes that meet their criteria and start viewing, again online first, the next step is to check out the pictures and curb appeal. From this if ready as most search for a while they arrange to preview in person, a list is formed and by this time they have contacted a Realtor as 79% of buyers want an agent by their side when they purchase and this number is expected to rise as HOA and Condo association problems become more of a problem due to non payment of fees.

From this preview visit the list is narrowed to home features (garage, kitchen, number of baths, office), property age (depending on age of buyers), curb appeal but in the end do to the market it comes back to price although there is statistics that say buyers will pay slightly more the closer the home meets their criteria.

I concur with Mark on the days on market statistic so you must keep a check the market values during the listing period and adjust when needed, maintain curb appeal, take good pictures, highlight the features for the different ages of buyers and as a carrot offer buyer incentives or offer a higher buyer agent’s commission.

Let me know if I can help with more information and visit my website for a more in-depth Market Snapshot Report for this or any other area based on a zip code, but please pardon the dust it’s currently going through a redesign,

Broker Dave
GRI, ePRO, GREEN

Visit my profile located here on Trulia, its simple just scroll your mouse over my picture and click.
Web Reference:  http://OrlandoHomeStore.com
0 votes
Gay Middleton, , Orlando, FL
Wed Oct 28, 2009
Good Morning Timeout

I am assuming you are asking because you have a vested interest in possibly listing and selling a home in that price range. All good answers proceed me.

I might add this comment, In fact I would suggest that you worry less about the number and more about the service. After all it is relative or is it? If you pay a lower than local average commission rate and your listing agent does a sub par job marketing your home is this a value? On the other hand if you pay market or above rates and hire the best agent that money can buy and your home sits for months without any contact with your Realtor....I am just throwing this out for your consideration. It is true it could go in the opposite direction as well. All the more reason to rely on the agent experience and company reputation and not just the commission number when choosing a Realtor.

That is why I suggest you look for a quality experienced agent with a track record in this price range, your location, and one that you are comfortable with. Interview several agents for the postion and if you find several qualified agents you may try to negotiate the fees with them. Keep in mind it is the Brokerage you are paying the fee to in many instances, not the individual agent. Just remember the best may not come discounted. It is your call and your call only and if you are motivated to sell your home then put your money where your motivation is, choose wisely, do your homework and this should be a receipe for a successful relationship.

By the way, the advice here is FREE and in a sense an agent's upfront marketing services are as well.

When I am hired to market a home for sale I sign a contract with the seller to perform certain tasks and typically there is no money paid upfront. It is my responsibility to set up a marketing plan and pay for that plan from my funds in combination with my company and my INCENTIVE is the successful sale of your home at which time my brokerage is paid per the contract and then my Brokerage pays me for the work I did . The MARKETING COSTS ARE INCLUDED in my commission not extra.

In this price range marketing time could take months even years to achieve a sale and marketing costs could soar. I do this with no guarantee of the sale of your home. As Realtors we to into our interviews with this knowledge. Imagine if I asked you to work without a paycheck for even 6 months but you still must pay any fees associated with keeping your job. Gas alone to get you to your job everyday would be enough to set you back. You would be surprised how many buyers/sellers do not realize that we are not on a salary and WE pay for most of the marketing costs of your home as well as our personal costs too. That is why competition is fierce among Realtors and why you have so many qualified answers to your question here. That is good for the customer.

I hope this helps you decide. If you have not chosen a Realtor to speak with regarding either Buying or Selling a property I would like to offer my "no nonsense" approach. Just real information shared in a real world way. As a successful Realtor in the Orlando area for over 10 years I would be delighted to interview for the postion. I am easy to locate. Not a secret agent, just a good one!

Regards,

Gay Middleton, Realtor
Moving You in the Right Direction
gaymiddleton@cfl.rr.com
407-493-3699
Web Reference:  http://www.gaymiddleton.com
0 votes
Lorraine Bur…, Agent, Clermont, FL
Tue Oct 27, 2009
Hi Timeout,

As you have heard, the commission is negotiable. So this is a discussion that you need to have with your REALTOR.

But on the other hand I can understand your wanting to know what is common practice. Based on experience and training with the Institute for Luxury Home Marketing, most sellers in this price range are expecting a high-end marketing plan to match their home. Consequently, sellers will offer a higher commission. They know that in general: high-end homes take longer to sell (due to the smaller pool of buyers than at lower prices), the marketing needs to be creative, marketing should be targeted at the most likely buyer categories, and marketing is more expensive for this price range. The best REALTORs for this price range tend to be the best in their field, smart, with extensive resources. You tend to get what you pay for. So I would recommend that you look for a high quality REALTOR to match your high quality home.

Sometimes the price of the commission is not considered relative to the cost of carrying the home. The longer it takes to sell, the longer you have to pay the mortgage, insurance, and other costs. A 30 year mortgage of $1.5 Million at 6% has a monthly payment of around $8,900. If the REALTOR commission is increased 1/2% to get a top-notch agent that sells the home faster the cost is only $7,500. So you might actually be saving in the long run. Please consider the entire marketing plan before you decide.

Good luck.
0 votes
John Bennett, Agent, Orlando, FL
Tue Oct 27, 2009
Great answer and a fair one as well

Broker Dave -

I wonder about those who say:

"There is no average commission"
I mean, what is it about public data we can't average??
Realtor.com publishs such information
many others sites as well.
0 votes
Condo Metrop…, Agent, Orlando, FL
Tue Oct 27, 2009
No true average, all negotiable, and if you think some of these answers are coy it's because the Sherman Anti-Trust provisions prevent us from having such discussions for fear of "price fixing".

While 6 percent is a number you might hear fairly often, it's not unusual for brokerages to charge less when homes are several million dollars. Certainly our brokerage tries to be as realistic and as competitive as times allow and home price is certainly a factor. More important, however is the question of whether or not the home is priced correctly in the first place and is likely to sell. I would rather charge 5% for a home that was likely to sell than have a listing at 7% that was so over priced we were all just wasting our time.

Feel free to contact me for a more in depth discussion of all matters related to selling if you are thinking of putting your home on the market.

Sincerely,
Marcus Burke, GRI
Broker/Owner
Orlando Real Estate Pros
407-290-3408.
0 votes
Edith Karoli…, Agent, Winnetka, IL
Tue Oct 27, 2009
Hi,
Commissions are negotiable, same goes for Florida and for higher end homes as well....
Contact agents and discuss what their plans for advertising and marketing are and what their commission is.
Some properties require more marketing and advertising than others, and commissions are never set in stone.

If you do not know a local Realtor and would like a recommendation, feel free to contact me - I could recommend an Agent Partner in Orlando....
Edith Karoline YourRealtor4life! & Chicago and Northern Illinois Expert & Relocation Services
Working always in the very BEST interest of her clients....
EdithSellsHomes@gmail.com
0 votes
Marty Kaiser, Agent, Orlando, FL
Tue Oct 27, 2009
Hi Timeout,

There is no average commission, commissions are negotiable. From a practical perspective, many top agents regardless of the price of the home typically seek at least a 6% fee, with the commission divided equally between the two agents, assuming the listing agent does not also represent the purchasers.

I have always believed that the consumer gets what they pay for and in today's competitive market, it takes even more effort, skill , communication and marketing expertise to sell and list any home, especially in the higher price ranges, as there are far more homes for fewer purchasers.

If I can provide additional information, further opinion or future real estate assistance, please do not hesitate to contact me.

Sincerely,

Marty Kaiser
Keller Williams Mega Agent
Broker/Associate
marty@floridasells.com
407-595-9700
Keller Williams Realty
"Excellence, Experience, Enthusiasm & Ethics"
Web Reference:  http://www.floridasells.com
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