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Flat Rate Commission on High End

Posted by worthy (My Page) on
Mon, May 31, 10 at 13:42

I just paid a $65k commission @4% on a relatively high-end home. I'm planning to sell a more expensive home and am looking at an even higher commission. I was a broker for 17 years and I know what's involved. I don't begrudge agents a commission. (Indeed, the listing agent cut her take to 1 1/2%.) But this is getting ridiculous! Has anyone had any luck in getting a flat rate commission on a higher-end home?


Follow-Up Postings:

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RE: Flat Rate Commission on High End

It looks to me like you already got a discount listing broker at 1.5%.
How would you suggest the agent gets paid who brings the buyer? Will you offer a competitive commission according to what is customary in your area, or are you expecting the buyer to pay their agent?


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RE: Flat Rate Commission on High End

The total commission was 4%, the customary rate for many agents on higher end homes; to encourage selling agents, the listing agent split it 2.5% for the selling agent, the balance for the listing agent.

A flat rate commission would be just that--say $60, $70, $80 K, whatever. I'm wondering if anyone has had experience with that sort of commission structure?


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RE: Flat Rate Commission on High End

Assuming what you're talking about is standard for your region, why should someone cut their commission?

I mean, you can argue the abstract fairness of it back and forth, but if that's the standard, that's the standard. People aren't generally lining up to make less money for their services.


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RE: Flat Rate Commission on High End

A few of the small builder/developers I've met in the past would keep it in the family by having a wife that was a realtor. The wife would list their properties.

The other 2 builders that I knew would always use the same realtor for their listings. I would assume they had a steady relationship with those realtors and had agreed on a lower commission in return for always getting their listings.


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RE: Flat Rate Commission on High End

I guess no one here is all that interested in saving money!

Yep, I should have kept my licence.

I was a broker for 17 years, but my allergies drove me out of it. Last deal I did, I wore a full face mask! (The sellers were friends.)

There are discount brokers here. But so far I'm sticking with my agent--who has handled more than 20 sales/purchases. Her broker takes 55-60% of her side. She was a Re/Max agent but the monthly nut was too hard to swallow in hard times.


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RE: Flat Rate Commission on High End

You can always find a flat rate broker to list your home on MLS, but the buyer's agents are going to expect to be compensated at the prevailing rate.


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RE: Flat Rate Commission on High End

The Justice Department announced an antitrust suit against the National Association of Realtors several years ago, saying the commission structure was rigged. As an example, they pointed to Great Britain where the typical commission is two percent, not six or seven percent, as it is here.

The suit seems to have dropped off the radar, if it ever got filed. I haven't heard anything about it for quite awhile.


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RE: Flat Rate Commission on High End

But so far I'm sticking with my agent--who has handled more than 20 sales/purchases. Her broker takes 55-60% of her side. She was a Re/Max agent but the monthly nut was too hard to swallow in hard times.

Wait...so your agent is only getting 40-45% of the sale/buy side commission in a given transaction? Geez, her broker is hosing her something fierce.


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RE: Anti-trust suit

I know very little about the anti-trust suit you mentioned, but I would suspect that it hasn't gone " value="1"> Your Name:

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