24% Listing Commission?

[Jack Deer]

I was looking at one property that the realtor claimed to have a 24% commission to sell. The property was listed under $30,000. There was nothing special (bad or good) about the property. Just another average lot with utilities.
What's going on here? Is the realtor sticking it to the seller?

[Russell Brazil]

That's what happens on low price properties.

Pretend it was a normal commission rate of say 2.5%. An agent would lose a couple grand servicing the property at that rate.

[Jack Deer]

Quote from @Russell Brazil:

That's what happens on low price properties.

Pretend it was a normal commission rate of say 2.5%. An agent would lose a couple grand setvicing the property at that rate.

 That makes no sense at all. That would be like McD's charging $7 for a small order of fries because it takes just as much work as a $9 combo.
Let me guess! You are a so-called realtor?
A lot is rarely ever shown by a realtor. The only work involved is if the so-called realtor lied or posted the wrong info.

[Jay Hinrichs]

Quote from @Jack Deer:

Quote from @Russell Brazil:

That's what happens on low price properties.

Pretend it was a normal commission rate of say 2.5%. An agent would lose a couple grand setvicing the property at that rate.

 That makes no sense at all. That would be like McD's charging $7 for a small order of fries because it takes just as much work as a $9 combo.
Let me guess! You are a so-called realtor?
A lot is rarely ever shown by a realtor. The only work involved is if the so-called realtor lied or posted the wrong info.

this is very common many brokers myself included have minimum fee's of 5 to 10k.. I have seen plenty of huds on properties I funded for fix and flippers were commissions were that high or higher and lets not talk about wholesalers who might charge 100% if they can get awaay with it.. difference is they dont disclose the brokers disclose to their sellers..

[Jack Deer]

this is very common many brokers myself included have minimum fee's of 5 to 10k..

I'm very intrigued!
Would you kindly post a link to some of your listings of $30,000 or less?
You don't need to tell us how much your commission is.

[Russell Brazil]

Quote from @Jack Deer:

Quote from @Russell Brazil:

That's what happens on low price properties.

Pretend it was a normal commission rate of say 2.5%. An agent would lose a couple grand setvicing the property at that rate.

 That makes no sense at all. That would be like McD's charging $7 for a small order of fries because it takes just as much work as a $9 combo.
Let me guess! You are a so-called realtor?
A lot is rarely ever shown by a realtor. The only work involved is if the so-called realtor lied or posted the wrong info.

 You clearly have little knowledge of how to run a business and the costs associated with it.

[Eric James]

Quote from @Jack Deer:

Quote from @Russell Brazil:

That's what happens on low price properties.

Pretend it was a normal commission rate of say 2.5%. An agent would lose a couple grand setvicing the property at that rate.

 That makes no sense at all. That would be like McD's charging $7 for a small order of fries because it takes just as much work as a $9 combo.
Let me guess! You are a so-called realtor?
A lot is rarely ever shown by a realtor. The only work involved is if the so-called realtor lied or posted the wrong info.

 McD's is free to charge whatever they want, and the public is free to not purchase if they choose not to. Same goes for any service.

[Lynn McGeein]

@Jack Deer the broker probably has a minimum dollar amount to list/sell, accounting for high %, especially if that is covering the buyer’s agent side too. Might be a lower commission if it was part of a larger package deal (like using your McDonalds reference, planning to sell many little things that add up to a lot).

[Chris Seveney]

@Jack Deer

We had a timeshare we sold for $30k and paid $5k commission. I did not even blink an eye at is as they have a min. They need to make before they lose money or even worth marketing the asset for you

I don’t believe at all this is like McDonald’s, it’s more like calling an electrician to change a light bulb, there will be a travel charge // min charge for someone to come do a specific job.

[Jay Hinrichs]

Quote from @Jack Deer:

this is very common many brokers myself included have minimum fee's of 5 to 10k..

I'm very intrigued!
Would you kindly post a link to some of your listings of $30,000 or less?
You don't need to tell us how much your commission is.

I dont list property I loan money to those that buy these properties and so I see the closing hud and what the brokers charge..  I have seen banks sell a house in Detroit for instance for 8k and broker charged 5k..  its super common in low value assets.

[James Wise]

Quote from @Jack Deer:

I was looking at one property that the realtor claimed to have a 24% commission to sell. The property was listed under $30,000. There was nothing special (bad or good) about the property. Just another average lot with utilities.
What's going on here? Is the realtor sticking it to the seller?

 24%!!!!!!!!!!!!!!!

What a loser. Should have charged more.

[James Wise]

Quote from @Jack Deer:

this is very common many brokers myself included have minimum fee's of 5 to 10k..

I'm very intrigued!
Would you kindly post a link to some of your listings of $30,000 or less?
You don't need to tell us how much your commission is.

 I've sold 100's & 100's of low value homes. Commission I charge is 7% or a minimum of $5k. So once you get into sub $70k stuff you're looking at the $5k fee. Whether the property is $4k or $40k, you are still paying $5k to me to sell it.

It should be obvious to you why this is, but it looks like it's not. An agent cannot work for 7% of $4k because that is only $280. It costs a lot more than $280 to market and sell a home. In business, the idea is to make more money than you spend.

[Drew Sygit]

@Jack Deer vacant lots typically take much longer to sell, so agend spends mroe time.

Would you rather pay an agent by the hour?

[Dan Thomas]

Like any industry there are professionals worth every penny and "professionals" not even worth $280. I have bought an investment property that had a very tight time window to close. No exceptions. We ran into an appraisal issue and our agent helped us fix it and negotiated a longer closing despite the fact that they initially wouldn't budge. I have worked with agents that needed help filling out the description of the property (example of the bad ones)

I'm not an agent but I can only imagine low price properties are MORE time consuming than a luxury home. Typically there are reasons these homes are so cheap and a good agent will help their client navigate those issue s.