selling fees for #x0m props

Discussion in 'The Buying & Selling Process' started by TMNT, 5th Dec, 2016.

Join Australia's most dynamic and respected property investment community
  1. TMNT

    TMNT Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    5,572
    Location:
    Melbourne
    Just wondering, whats the selling fees for 8 figure priced props??

    sure it takes a heck of a lot more work , 2% of $10m would be $200k,

    a realestate agent could live off the 40% of the $200k + salary by selling one per year
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    27,103
    Location:
    Sydney or NSW or Australia
    Really? The agent might get 40-50% split of the commission.That doesn't go far now.
     
  3. DaveM

    DaveM Well-Known Member

    Joined:
    14th Jun, 2015
    Posts:
    3,761
    Location:
    Adelaide & Sydney
    And how many $10m, 20m etc props a year does the aegnt get on their books?

    And if sold via an international agent conjunct, then another fee split there too
     
  4. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    23,319
    Location:
    Sydney
    It depends. The agent will develop a specific marketing campaign and the cost will reflect the effort and difficulty especially if a hard negotiation is expected which happens with high end properties.. It is negotiated when the whole of the job is understood. eg Is drone imaging needed ? Onsite agent to sell ? Overseas advertising ? Print / Media budget ? Special signage and photography ? eg I recently saw a listing in the Qantas inflight (Intl) magazine.... cant be cheap.

    Any agent who relies on selling two or three top end properties would be a bad agent and wouldnt get a listing. The good ones have loads of listing that include the top end and bottom end. They rely on tens of millions of dollars of turnover x their rate. The earn their name and attract sellers all through the market even out of area.
     
    TMNT likes this.
  5. TMNT

    TMNT Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    5,572
    Location:
    Melbourne
    superb answer!

    ok, so is 2% on a 10mill prop a reaosnable figure?
     
  6. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    27,103
    Location:
    Sydney or NSW or Australia
    Depends on which shoes you're wearing.

    If you're an agent putting together your client submission try 5%

    If you're the vendor - what are you prepared to pay?
     
  7. Shady

    Shady Well-Known Member

    Joined:
    20th Aug, 2015
    Posts:
    523
    Location:
    Sydney
    Depends who the agent is really. Most of the top performing agents in Sydney wont negotiate their fees, they don't need to. Saying that, their std fee maybe 1.5% on a $10mil sale and they'll have 3-4 listings on the go at any one time