Real Estate Agent Commision On Development

elitenw

I was wondering what kind of deals other builders are forming with their real estate agents? I am building 4 homes worth almost 3 million total. I feel they are in a nice area where land is hard to find. This will make them unique to my area and will sell easily. For that kind of money I feel a lower commision is in order. What do you think?

MattCoops

land may be harder to find in that area, but that is going to have little to no effect on the commission rate of a selling agent

I use to hold a real estate salesperson license in the commonwealth of massachusetts

you may want to ask real estate agents in the area to do a CMA on the property
that is a Comparitive Market Analysis, basically letting you know what similar properties have sold for recently and what others are for sale for

then see who offers best commision rate
and weigh that against their popularity and presence in the area
ask how they'll advertise your property
how often will open houses be conducted
you may be able to bump down their commission rate by giving them multiple listings

but think about it
who will they work harder to sell for?

You wanting a 2% commission on a $750,000 property (that probably will not sell for what you think it is worth anyhow and they'll have to keep reducing asking price and the house will be on market for months)

OR

A $350,000 listing that will get more buyer traffic at a 6% commission


Real estate is pretty cutthroat.
And finding a good agent is key.
We do flips on foreclosures and estate sales and use a realtor.

Oh, that's a whole nother thing. Make sure your agent is a "Realtor" and not just a real estate agent.

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