Does anyone have an idea of what the Comission rates might be around Las Terrenas and the Samana Area?
Thanks for your help.
Thanks for your help.
- Thread starter IslandBro78
- Start date
Commission Rates
The commission rates will vary greatly and it largely depends upon the deal the realtor has with the seller. The seller pays commission in all cases but, of course, this does impact the price you will pay. There are generally three different formulas people use in selling real estate.
1. Straight Commission. The seller agrees with the realtor to provide him/her with a commission for selling the property. This will be some number between 3% to 10% of the actual selling price.
2. Add On Commission. The seller does not want to have to pay a commission so he/she agrees to allow the realtor to add some amount on top of the net price the seller wants in their pocket. This can be scary because a seller may want $7/m2 for property but if the prevailing properties sell for $10/m2 the realtor may charge $10/m2. The difference, $3/m2, is the commission. If you are speaking of 4000 m2 this isn't too bad but if you are speaking of 1,000,000 m2 it can be a real killer.
3. Add On Split. This is the same as #2 except the realtor and the seller split the difference over the net price the seller wants. This is also pretty common, particularly for more savvy sellers.
The thing to note in the above is that in all cases the seller is paying the realtor. In other words, the realtor is a 'sellers agent' so anyone buying property needs to definitely keep that in the front of your mind.
If you get a responsible realtor they will do good for you because they want you to refer them and buy more from them in the future. Look for one who thinks into the future, not just to the deal in hand.
I hope this helps!
1. Straight Commission. The seller agrees with the realtor to provide him/her with a commission for selling the property. This will be some number between 3% to 10% of the actual selling price.
2. Add On Commission. The seller does not want to have to pay a commission so he/she agrees to allow the realtor to add some amount on top of the net price the seller wants in their pocket. This can be scary because a seller may want $7/m2 for property but if the prevailing properties sell for $10/m2 the realtor may charge $10/m2. The difference, $3/m2, is the commission. If you are speaking of 4000 m2 this isn't too bad but if you are speaking of 1,000,000 m2 it can be a real killer.
3. Add On Split. This is the same as #2 except the realtor and the seller split the difference over the net price the seller wants. This is also pretty common, particularly for more savvy sellers.
The thing to note in the above is that in all cases the seller is paying the realtor. In other words, the realtor is a 'sellers agent' so anyone buying property needs to definitely keep that in the front of your mind.
If you get a responsible realtor they will do good for you because they want you to refer them and buy more from them in the future. Look for one who thinks into the future, not just to the deal in hand.
I hope this helps!
Great, informative post! Never heard about 3% comm though. If it is true - it is a very good and positive encouraging sign of some reasonable realisticity hatching at last. Sellers` and agents` greed kills way too many promising deals.
The 3% figure is most often quoted by Dominicans who have unique pieces of property or gringos who are selling something very expensive. In other words, it is unusual and is often only set when the seller is in complete control and knows she/he will get her price (eventually).