$3m+ selling costs?

Discussion in 'The Buying & Selling Process' started by FamilyMan, 30th Jan, 2019.

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  1. Illusivedreams

    Illusivedreams Well-Known Member

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    $3,000,000 means $33,000 commission split with [email protected]%. It's a huge amount of money.
    2.5%=$75,000.
    With the crazy market agents have a lost a sense not what an enormous amount of money this is.

    On top most agents I worked with want upfront all marketing costs. On top of the commissions.
     
  2. Fargo

    Fargo Well-Known Member

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    You should certainly try to negotiate commissions with incentives for them to perform. Suss out your less preferred agent first, with say, 1.5% for up to 3.4m , and 10% for amounts above. Depending on response tweak it for your preferred Agent.
     
  3. kierank

    kierank Well-Known Member

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    Sorry, I have no idea what you are trying to say here.

    Can you explain your point in better English and I will respond.
     
  4. The Falcon

    The Falcon Well-Known Member

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    Right, I’ve done this before. Lower base and stretch target incentives. Makes sense in private treaty where the agent is doing the hard work....auction different story.
     
  5. Tifoso

    Tifoso Well-Known Member

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    You want someone experienced in selling higher end properties, with a proven track record. I don't think your average agency agent has a clue what they are doing with these sorts of values. In fact, your average agency agent doesn't have a clue full stop :D

    In terms of commission, someone willing to "cut their own throat" by agreeing to a low commission may not be the right choice.

    I don't really like fixed rates of commission because as mentioned above an extra 5 or 10k is peanuts in comms, even though a driven agent will always push to get the best result, as it will generally lead to more referral business etc. "Street Record, blah blah"

    If you want to align an agents KPI's with your own goals, you could try suggesting a sliding scale so say they get an poor / average commission for anything under $x, but they get a larger share of anything over. For example, if they set your expectations for 3m worst case for example, maybe offer 1.0% for anything lower than 3m, and 15% of anything they can achieve over this. This will incentivise them to "put their money where their mouth is" and really drive hard to get a higher price. It may end up costing you a little more in commission if they achieve a really great result, but you'll end up with way more cheddar in your pocket.

    In my mind, the last thing you want is an agent that will work as hard to pull you down as they will to pull a buyer up.
     
  6. Tifoso

    Tifoso Well-Known Member

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    Hah, yer what Fargo said!

     
  7. kaibo

    kaibo Well-Known Member

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    I would say if you can't at least get me $X which you said I should get then I am not selling
     

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