Recommendation on a commission rate

5 Replies

Hi BPers. 

I have a vacation rental property in southwest MI that I am considering selling. I have talked with two agents so far and both have given me, what I consider, a high commission rate (7-8%). Does this seem high, or is it pretty standard?  I usually hear of rates being in the 4-5% precent range. The property is 141 acres and very rural so does that account for a higher commission rate? I look forward to hearing your responses. Thanks.

Aaron

I think it depends on the price of the property most places that don't have expensive homes like CA will be about 6% but if it is a super cheap property that could be the reason they ask for more.  In CA 5% or even 4% is doable because in some areas it can be difficult to find any property for sale for less than $500,000

@Aaron Markle . This question might do better in a different forum but being married to a top agent my answer is..... if you want the best, pay whatever they ask or more and get the job done. The best agent isn’t going to let you low ball their commission. Rockstars know rockstars. Rockstars don’t haggle. Be a rockstar! Sell that thing and 1031 into some big cash flow!!!!!!!

5-6% is typical in my market for residential. 5-10% is typical in my market for land.