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Keith Miller
Pro Member
  • Rental Property Investor
  • Missoula MT
80
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204
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How would you structure lot sales commissions for a subdivision?

Keith Miller
Pro Member
  • Rental Property Investor
  • Missoula MT
Posted Feb 22 2024, 12:32

I've got a question that I'm hoping you weigh in on. I'm a realtor here in Missoula, and I'm planning a large subdivision project with a partner of mine in nearby town, we'd be selling roughly 200 homes. I am an agent, but a relatively new one, and so I'm hoping you can help me think this through and offer some advice. 

With each home selling for around $250K, the selling commissions add up to $1.25 million (at 2.5%). That's a pretty sizable chunk of money, so my partner and I are trying to think through the best way to structure the selling process, and I'm wondering what you'd do in my shoes. We've considered the two options:

1. Bringing the sales "In-House" into our company, and I would earn the commission. Then, I'd hire a full-time salesperson to be on the ground, who we'd ideally pay a commission to.

2. We sign with a local broker, and negotiate a smaller commission.

Do you have any recommendations for which option to choose? Just looking for advice here, any thoughts are greatly appreciated!

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