Realtor Commision... Negotiable?

[project240]

A friend of ours is listing some land for sale out in Saskatchewan in a prime location for around the 1M range. His realtor just sent over a contract and she has listed her commission at 6% of the total sale. I remember when we sold a few years ago it was around 6% on the 1st 100,000 and then dropped to 3.5% for everything over.

Anyways, on his land, 6% of the total sale would equal over $50,000... Is this negotiable at all? That amount seems quite high to both of us.

I tried google, but couldn't really find details. Any info? Thanks

[Sugarphreak]

...

[ckangarloo]

6% for a land sale seems like a huge amount. Negotiate and if that goes nowhere, shop around for another realtor. There are always tons of realtors around.
When selling my house, I found a realtor who admitted to me that realtors are the scum of the earth and are on the same level as lawyers. I liked his honesty and his price. Used him with great success!

[ExtraSlow]

It should be negotiable and if it isn't, shop around for another realtor.

[quazimoto]

Err who the hell is she looking at. if i remember right, real estate is supposed to be 3% or 3.5% flat fee across the board in Sask. Unless there is some sort of special marketing required its excessive.

[masoncgy]

Absolutely negotiable. Shop around.

Always keep in mind that the realtor does not get the whole % as commission... there are brokerage fees, etc that take their portion of that pie.

[project240]

I'm glad I'm not the only one who thought that number seems out to lunch. 3 - 3.5% definitely sounds more in the correct ballpark, even then, that's still around $25K...

[Weapon_R]

Keep in mind that the commission is split between two realtors usually. That 25k number becomes 12,500 and after advertising fees and a couple months of work, it doesn't seem so much.

But if the realtor finds a buyer, they will want the whole fee themselves. I would make sure the sellers strike this provision and only pay half.

[D. Dub]

Commercial real estate, and especially raw land is a horse of a different colour.

[JordanLotoski]

In Saskatchewan 6% is somewha the norm. you migh be able to tighten that up to 5%, anything less id really be looking into what kind of experience the agent has.

Here in Albera we offer the lowest commission rates when selling a home (7%100k 3%Bal) I do know an agent in my office that charges 10% on the total sales price. he knows his stuff and does extremely well.

Best of luck with the sale

[project240]

Well, I'll definitely pass this info on to him and I'm sure he'll try to at least negotiate down a little bit. Thanks for the advice everyone.

[quazimoto]

My realtor in Regina assured me that the rates in Sask are seriously 3.5% flat across the board. It might differ though for basic land sales though.

[msouther]

All rates are negotiable, and for this realtor to be charging 6%, make sure your friend finds out why that is, and what makes them deserve more than the "norm" although there isn't technically such a thing. If the person is a top realtor, has great connections, and sells for close to list price on the majority of their listings, the higher commission might actually mean a quicker sale and more money in your friends pocket too. Not for sure though. It could also be the opposite in that this realtor is trying to pull the wool over your friends eyes as well.

Hiring a realtor is like hiring any other contractor in that you should always interview about 3 of them and find out what each of them brings to the table. Fees are also something important to ask about, and if there are variances between each realtor, find out why. I would not recommend going with the lowest priced realtor ever, because that means less exposure and interest in your property as well as less service. Best of luck to your friend!

[barmanjay]

Originally posted by quazimoto
My realtor in Regina assured me that the rates in Sask are seriously 3.5% flat across the board. It might differ though for basic land sales though.

Is that residential? commercial? rural?

rates can be different for each

[anothers10]

Originally posted by quazimoto
My realtor in Regina assured me that the rates in Sask are seriously 3.5% flat across the board. It might differ though for basic land sales though.

Yeah 3.5 % for each Realtor in the deal, making the total 7%

It says in this link average is 7%
http://www.skproperty.com/2020applic..._privately.asp

In Nova Scotia it is 5-6% of the total sale.

[barmanjay]

3.5 flat? what the heck am I doing here then?

[quazimoto]

Because more houses sell here and the vast majority you'd be selling in Saskatchewan are quite honestly crappy properties that aren't worth much so your commission wouldn't be so friendly.

The nicer newer homes in SK are stupidly over priced right now in a market where I don't know how some people afford them. The newer houses in Regina are more expensive than they are here in Calgary. I think it has something to do with how the building process is so much different than Calgary.

[project240]

Originally posted by quazimoto
the vast majority you'd be selling in Saskatchewan are quite honestly crappy properties that aren't worth much

Off Topic, but obviously misinformed. Have you seem some of the overpriced junk built here in the past few years?

Real estate prices in Sask have boomed in the past couple years, just like Calgary a few years earlier.

[project240]

Originally posted by anothers10


Yeah 3.5 % for each Realtor in the deal, making the total 7%

It says in this link average is 7%
http://www.skproperty.com/2020applic..._privately.asp

In Nova Scotia it is 5-6% of the total sale.

I doubt the average would be 7%...

I just remember a few years ago selling and only paying 6% on the first 100.

[JordanLotoski]

^^^ its way up there. my brother in law just sold paid 6%

Regina commissions;

450,000 home
6% commissions

27,000 commission plus GST

Calgary Commissions;

450,000 home
7% 1st 100k 3% bal

17,500 commissions plus gst

Pretty big difference on a home at 450k


I think for a piece of land your friend is best to go with the most experienced realtor instead of saving a few bucks.