A Radom real estate question (1 Viewer)

[SHERMAN FJ62]

Gentlemen,

I am a Texas expat I work for the military in SC. My family unfortunately has decided to sell our ranch in the hill country. This is a multi-million dollar deal. What is the standard real estate commission. A agent we met with said they could sell it in 60 days and their commission was 6%

We are in no rush to sell want top dollar. The standard for this type of deal in SC is 4%.

Is 6% normal?

We don't know these guys but 6% seem high.

Thanks

 

[crotalusatrox]

My advice...


There a half dozen great real estate agents that specialize in farm/land & ranch in the central texas area.

I would interview three or four

Just like a job interview

Maybe have a extra member of the family sit in.


Juss my two cents.


Chris

 

[Delancy]

6% is typical residential, as far as I can recall, but in OK, commercial brokers will line up for 3-5% on million and more deals.

Edited, to clarify the first.

I believe 6% is the total commission paid both the listing and buyer's agent.

 

[FJsnoozer]

yup. 3 and 3. I know some guys that specialize in those property sales in the hill country. I check what they charge on a deal of that size.

 

[jmdaniel]

Real estate rates are ALWAYS negotiable. If you are in no rush to sell, why don't you try For Sale By Owner (FSBO)? You can hire a real estate attorney to draw up the paperwork a lot cheaper than paying a realtor a % of the sales price.

 

[SHERMAN FJ62]

Thanks,

For the info. We are going to make some improvements and sell in the next few years.

 

[FJsnoozer]

Real eatate rates are not always negotiable, and people often undervalue the effect that a realtor has on the transaction. Especially in a booming market.

When times are good, people try to sell property themselves because they sell easily, however they could be severely underpricing their house and miss out on a multiple offer situation. Texas is also a non disclosure. You dont know what the house around you sold for neccesaarily, let alone a farm or ranch which is difficult to comp.

Zillow and company will completely change the way reaidential realestate transactions take place 3-10 years from now but for now its business as usual. For sale by owner does not save you 6%.

I am not a realtor.

 

[jmdaniel]

Everything is negotiable, Davis. As far as the rest, you make a good spokesman for realtors, but the reality is that FSBOs are possible, and they can be profitable to the seller. I know because I've done them. There are too many variables to make either your stance or mine 100% true, but my suggestion stands; for a multi-million dollar property, the last thing I would do is pay a realtor 6% to sell it.

 

[Cherrick]

This is Texas. Everything is negotiable, including taxes (not death). If you sell rural property in Texas quickly and at a good, high price then 6% is reasonable.

 

[FJsnoozer]

Not every person is negotiable. Some people value their time and services enough not to discount. Unless you need a loss leader because your are short on clientele, or need to put employees to work so they can feed their families, or will benefit greatly on a future related transaction, it is not always a sound business process to alter your fees because you encounter someone like Jmdaniel. I know some brokers who do 2% realty as part of their model.

JM, are you experienced enough in marketing and selling a Texas ranch and would have no issue advising yourself on strategies to replot and subdivide land for maximum profit. Maybe you could help this guy out?

I know FSBOs can be profitable, especially in the right area or a tenant buyout situation (ie. you have a tenant or a tenant of the same condo that is ready to buy). There is a sweet spot however. If the house is too cheap, its not worth your time and hassle, If it is too expensive or in the wrong place, it is also quite difficult to market since those folks typically will use their buyers agent and MLS only vs. the Millennial who will use Zillow, craigslist well before even contacting a realtor. Most realtors do not use zillow when setting up a weekend of searches for their clients.

 

[mmw68]

I know several great Farm and Ranch Realtors, who really know the hill country F&R market. Right now water rights are a big issue. Iam a realtor myself - shoot me a message off line if you have any questions or need any recs. -Mark