I am buying a development land in Maui, my agent asked for a 3% commission, is this too high? transaction 9M.

I am buying a development land in Maui, my agent asked for a 3% commission, is this too high? transaction 9M.
In Buying Property - Asked by Wei Z. - Nov 21, 2011
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Answer(s)

Sam M.
Broker/Agent
Eagle, ID

As a commercial broker the generic expected answer would be that 3% is a customary commission. That said all things are negotiable & i guess it really depends on how involved or pivotal you feel he was. I rarely see commissions of 3% above 5 million after that dollar amount commission would adjust to 1-2%. If you have already come to terms with the seller at a price that works for you & they are paying him then BRAVO realtor. If you are being asked to pay him out of your pocket I'd ask that the seller split commissions with you or do a sliding scale.

Nov 22, 2011
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Rob M.
Lender/Mortgage Broker
Houston, TX

How much is the transcation? 9 million or 9 thousand? M = 1,000 and MM= 1,000,000 If it is 9 million that is a great commission.

Nov 22, 2011
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Dann S.
Broker/Agent
Tempe, AZ

First and foremost, commissions are negotiable and they should never be at a rate that results in a detrimental outcome to the client. Having said that it all depends. Depending on the size and complexity of the deal it may be high, or it may well worth the fee. A good broker will see things and add value in ways that are difficult to put a price on.
The best advice I can offer is have a direct conversation with your broker to discuss it.

Nov 23, 2011
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NATHAN B.
Broker/Agent
Ontario, CA

Typically all commissions are negotiable, you have issued a general and very short question that in order to answer requires more information. How much work has the agent done? At what point did the agent bring up the commission dollars? Was the property listed or was it an off market situation? Do you have an agreement with the agent? Bottom line .....What are details of this situation?

Nov 24, 2011
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STACY D.
Broker/Agent
Kamuela, HI

Hawaii State Commissions are negotiable. A 6% is standard commission paid to the listing brokerage company. Listing broker then agrees to pay cooperating buyer's broker a 3% commission.
Aloha!

Nov 26, 2011
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Pam W.
Broker/Agent
Fort Myers, FL

In my real estate transactions in Florida, 3% is customary, however it depends on the situation. Commission has been adjusted to complete the closing and to satisfy all parties.

Nov 28, 2011
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Lisa J.
Listing Administrator
Cleveland, TX

Usually 1-2 % but it all depends the location its in is probably the going rate.

Dec 5, 2011
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Lee W.
Broker/Agent
Bellevue, WA

I have no idea why people are saying 1-2% is customary, or why they say it all depends on the transaction. The reality is that brokerage fees are a part fo doing business, period. the standard fee nationwide is 5% on all commercial transaction, regardless of sales price. when i go to a rest. the tip is generally 15%. Now people are saying we should tip more becuase people are going out less, but does someone tip me in my business? NOPE. If you are not a broker then you have no business answering this question. Fee is 5%. If you are paying a fee and your broker is only charging you 3% then you got a deal. Too many brokers are charging less than normal fee to get a listing and you know what? No one sells it because it is a lower fee. Hate to say that but it is reality. I sell things and i hire other brokers to sell my own stuff, and i am glad to pay them a normal fee to get the job done. Time is money, when you have something for sale and it sits on the market too long then that costs you money.

May 21, 2012
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