Hi, can anybody tell me what the normal fees are for selling a house, I have been quoted 10% which was then knocked down to 8% of the value of the house. Is this excessive as in the UK its between 1-2%. The agent who told us this was the agent we used when buying the house and were very good but this just sounds high.
- Thread starter holland1974
- Start date
real estate agents fees
Lower fees
It is rather high - one company Redline will go as low as 3%
Their web site is :Redline Dominican Republic
I have nothing to do real estate but thought this might interest you !
Olly
It is rather high - one company Redline will go as low as 3%
Their web site is :Redline Dominican Republic
I have nothing to do real estate but thought this might interest you !
Olly
It also depends on the value of the property.
A little studio worth in the 20K's will most likely be listed at a higher percentage rate than a mansion, hotel or huge piece of land in the millions.
It can take a lot of showings / time to show the little studio in hopes to 200.oo Dollars.
Also currently, listings is not what most agents are missing... it's buyers which seem hard to find.
... J-D.
A little studio worth in the 20K's will most likely be listed at a higher percentage rate than a mansion, hotel or huge piece of land in the millions.
It can take a lot of showings / time to show the little studio in hopes to 200.oo Dollars.
Also currently, listings is not what most agents are missing... it's buyers which seem hard to find.
... J-D.
Interesting first post??????????
I have bought and sold numerous properties in the DR. For sale by owner is almost impossible. Try listing your property for 5% and see how many showings you get when everything else on the market pay 7-10%
This is very true. One of the first questions asked by a buyer's agent is "What's the commission split?" If it is to low, or below the norm, they will be hesitant to show the property to their client.
Commissions are negotiable when there's an offer on the property. Why most buyers/sellers don't take that into account I don't know. Without a MLS system here either a realtor/broker makes the sale or risks getting nothing if another realtor makes the deal at some time in the future.
In my case, both buyer & seller wouldn't budge from our price positions. The realtor was left with closing the gap by adjusting the commission or losing the sale. Ultimately, so as not to lose the sale, the realtor dropped from 7% to well under 2% commission. Still a decent payday for the realtor - and it wasn't a multi-million (or even close to a million) dollar sale.
People seem to forget that there are 3 parties in a real estate purchase negotiation. And if done right, it's not always the buyer or seller that blinks first.:devious:
In my case, both buyer & seller wouldn't budge from our price positions. The realtor was left with closing the gap by adjusting the commission or losing the sale. Ultimately, so as not to lose the sale, the realtor dropped from 7% to well under 2% commission. Still a decent payday for the realtor - and it wasn't a multi-million (or even close to a million) dollar sale.
People seem to forget that there are 3 parties in a real estate purchase negotiation. And if done right, it's not always the buyer or seller that blinks first.:devious:
No MLS system on DR north coast... no commission split. In most cases, sellers place their property with multiple agents. Selling agent takes all.
4-5% might work in Santiago, Santo Domingo or the East Coast, but it doesn't fly on the North Coast. Actually, the only times I'm seeing 5% or below is on huge developments, Cap Cana, Casa de Campo etc. Then again, even those are bumping up commissions these days trying to move property and generate broker activity, regardless if your a local or gringo.
A few places where it is advantageous to pay more for better service and production: doctors, lawyers and brokers.
Brokers intend to make a profit. For that reason they will show the higher commission properties first. This is especially true when the supply exceeds the demand.
The option would be FSBO. Good luck with that...
6-10% depending on many factors seems fair enough.
Thank you, Hilbilly for the true and honest information.
4%-5% in recession times with no RE activity is more than adequate.
6% seems a bit excessive.
10% -.... Have no comments...
aranoid:very interesting. so, if they decide not to show if commission is less than 60%, we`ll have to pay 60% obediently?
something sounds a bit wrong. seller has the house. buyer has the money. "agent" has nothing (and risks nothing) - why "agent" rules? Not seller nor buyer?
Sorry for the question...
Thank you, Hilbilly for the true and honest information.
4%-5% in recession times with no RE activity is more than adequate.
6% seems a bit excessive.
10% -.... Have no comments...
It's wishful thinking, not true and honest and that's a huge difference.
Take a look around you and what realtors are doing country wide, then you'll have a better grip on the actual reality.
Think of it this way. Seller has the house. The buyers agent has the buyer. Without the buyers agent the seller still has a house for sale.
If the buyers agent finds 10 suitable houses for sale and 9 of them are listed at 9% and one of them list listed at 5% the buyers agent is likely to show the houses listed at 9% before even letting the buyer know about the house listed at 5%. Odds are, the potential buyer is going to purchase one of he 9 houses before even seeing the 10th house.
I'm not saying that all residential agents do this. But it is safe to say that most of them do factor in how much the potential commission is on a house before showing it.
This leads to another important point. As a buyer you need to do your homework. Search the internet and drive through the neighborhoods where you want to buy. If you do this, it is likely that you will find a few houses that your agent omitted because they were not in the mls or the fees were to low.
Hope this helped.