The November LANDTHINK Pulse revealed 18.23% of respondents are willing to pay a real estate agent only 3% commission to sell their land. This comes as quite a surprise, since a 6% commission split between listing broker and selling broker is the customary rate for agents concentrating on residential real estate. Real estate agents specializing in land sales or commercial properties usually garner higher commission rates (6% to >10%), given the complexity of these types of transactions, customized service, and the scope of their work. Adept land agents are expected to know the intricacies of zoning, easements, construction, wells, septic systems, wetlands, and much more.
Sellers certainly don’t have to recruit the services of a real estate broker when selling their property, but a skilled land agent will provide a multitude of important services for the seller such as marketing, advice during negotiations, and guidance through closing procedures. The seller will almost always get money spent on commission back, and then some, because hiring an agent boosts the seller’s chances of attaining a higher price for the property. Nearly every real estate transaction has some complications, and a skilled, productive agent is worth every penny. There is no set amount that a broker will charge and the commission rate is always negotiable.
Last month, the November Pulse asked: How much commission are you willing to pay a real estate agent to sell your land?
The LANDTHINK audience certainly expressed mixed views on commission rates, as our informal online survey revealed. The results were all over the board, but the largest percentage (18.23%) indicated that they would be willing to pay a real estate agent 3% to sell their land, followed closely by 16.52% of our audience, who indicated they would be willing to pay an agent 10% commission to get their land sold.
Here’s how the results panned out:
- 18.23% said they would pay 3%
- 16.52% said they would pay 10%
- 14.81% said they would pay 6%
- 13.96 % said they would pay 5%
- 8.26 % said they would pay 4%
- 8.26% said they would pay 8%
- 4.84% said they would pay 1%
- 4.84% said they would pay 2%
- 4.56% said they would pay 7%
- 2.85% said they would pay >10%
- 2.56% said they would pay 0%
- 0.28% said they would pay 9%
Thank you to everyone who participated and shared the Pulse with friends and connections in the land industry.
LANDTHINK is seeking sponsors for the first LANDTHINK Pulse of the New Year! Sponsorship of the first Pulse of the year is a great way to amp up your marketing in 2015 by leveraging our entire network of web and social media sites. Pulse sponsorships are offered on a first come first serve basis and are subject to certain limitations. If your business would be interested in sponsoring next month’s January Pulse question, please contact us soon.
Do you have a suggestion for next month’s Pulse question? Submit your question here and we might choose yours!
The President announced an executive order that will change the way undocumented immigrants work in the U.S. In your opinion, how will this affect American farms?
This content may not be used or reproduced in any manner whatsoever, in part or in whole, without written permission of LANDTHINK. Use of this content without permission is a violation of federal copyright law. The articles, posts, comments, opinions and information provided by LANDTHINK are for informational and research purposes only and DOES NOT substitute or coincide with the advice of an attorney, accountant, real estate broker or any other licensed real estate professional. LANDTHINK strongly advises visitors and readers to seek their own professional guidance and advice related to buying, investing in or selling real estate.