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House sales commission

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What is a fair commission for a broker for selling a house?

What about the buyer's broker, is the commission split with them?

And can the commission be negotiated down?

Thanks.

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I have had more success selling and renting properties by doing

it myself,a sign on the gate,electricity posts in the area ,work

great,property in a good area,at the right price,is not difficult

to sell and rent.

Local people in the area many of them act as agents,and try

harder to get the commission than real agents,just my opinion.

as its worked for me.

regards Worgeordie

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3% has been the rate for many years. Prices have rocketed up over the past 20 or so years making sales introductions a very lucrative past time, hence every man and his dog tries to get in on the act. Given the market prices, it should be more like 1%.

The traditional method for selling land is to let the old guy in the village that acts as the contact point know, and he liaises with the agents, typically ladies, that are the contacts for buyers and show the properties. Years ago my father-in-law was the village contact and he used to get half the commission.

My wife helped a friend to find a plot of land to build on and had to share the commission with 5 other people because they were in the contact loop - literally just passing a message e.g. sister of owner, person upkeeping the lot, mother's sister, etc..

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It also depends on what you're buying.

 

A. If that's land with or without a house in a village in the countryside then the model is to just make sure that everyone has your number and knows roughly what you're looking for, and then stuff will start happening. I wouldn't even worry about what percentage anyone in the middle makes or doesn't make: you care about the purchase price so you make your offer and if the seller pays someone for the lead then that's up to him.

 

B. If it's a condo or a (new) house in a commercial development then you're dealing with the developer and whatever financial picture they have in store for you.

 

C. If it's a house in the city being sold by the owner then you'll get very far just by using all the classifieds and real estate websites, or aggregator sites where real estate companies and independent agents advertise, in addition to individual sellers.

 

My wife is very good at A, and comes up with interesting land via just about anyone, down to leads from the local noodle lady.   I am much better at C, and I've found three houses now to buy via an online listing that were excellent value for money.   For the old city area though I'm afraid it's back to model A, and having to go via word of mouth.. because any reasonable plot in the old city will cost a crazy amount of money so there's more mileage in someone finding an old lady who wants to sell some tiny plot for still okay-ish money.

 

I don't think I've ever concerned myself with sales commission.. I don't care what anyone makes as long as I get the price I want.  Just assume that anyone you meet in the process who smiles at you makes some sort of commission and that's just fine. ;) 

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21 hours ago, YoungBrit said:

And can the commission be negotiated down? You can try but any reputable agent will not go lower than 3% in my opinion. 

My personal experience tells a different story. I’ve never paid 3%. I’ve paid 1%-1.5% sometimes based on a fixed fee. I’ve had agents ask 5% and I’ve had agents ask for their commission before a deal is done!

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18 hours ago, NotEinstein said:

3% has been the rate for many years. Prices have rocketed up over the past 20 or so years making sales introductions a very lucrative past time, hence every man and his dog tries to get in on the act. Given the market prices, it should be more like 1%.

The traditional method for selling land is to let the old guy in the village that acts as the contact point know, and he liaises with the agents, typically ladies, that are the contacts for buyers and show the properties. Years ago my father-in-law was the village contact and he used to get half the commission.

My wife helped a friend to find a plot of land to build on and had to share the commission with 5 other people because they were in the contact loop - literally just passing a message e.g. sister of owner, person upkeeping the lot, mother's sister, etc..

So you think your wife wants to share your 1% that you THINK should be the commission amount with 5 other people?  Can you ask her and come back and let us know 3% is normal and make a whole lot of sense!  Just because prices have gone up ( but they are quite flat now ) over the years doesn’t mean an average commission should go down 200% according to you. 

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In Phuket some agents try asking for 5% for selling and 10% commission when finding a tenant for renting instead of 1 months rental 

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38 minutes ago, alex8912 said:

So you think your wife wants to share your 1% that you THINK should be the commission amount with 5 other people?  Can you ask her and come back and let us know 3% is normal and make a whole lot of sense!  Just because prices have gone up ( but they are quite flat now ) over the years doesn’t mean an average commission should go down 200% according to you. 

When a plot was selling for 20K, 3% made sense, but we are now talking 5 million. 150,000 for an introduction is way over the top in my estimation. In the UK, in the past, I have paid between 1 and 1.75%, which were quite considerable amounts due to the values involved. 

 

As for my wife, like most, getting 10K for little time and virtually no effort would be most welcome.

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As previously mentioned 3% is the norm. However, RE agents in Thailand do little to nothing to earn that. The post the house on their website, then sit on their asses in their office waiting for someone to spot the house on the web and ask to see the house. I’d much prefer to pay 7% to someone that actively searches for buyers and promotes the sale of my house.

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15 minutes ago, Kurtf said:

As previously mentioned 3% is the norm. However, RE agents in Thailand do little to nothing to earn that. The post the house on their website, then sit on their asses in their office waiting for someone to spot the house on the web and ask to see the house. I’d much prefer to pay 7% to someone that actively searches for buyers and promotes the sale of my house.

Any ideas where to find such an agent that actively searches for buyers?

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