Question

Topic: Strategy

Realestate Marketing Commission Vs Services

Posted by Anonymous on 11/3/2009 at 11:56 PM ET 250 Points
Problem:Developer is scared to list with one company fearing lack of participation with other area companies.

Met with a developer of a new subdivision today and he needs to list with a company to get into local multiple listing service. He is willing to pay 1% for this service to our company. He will pay 4% to any selling agency with a buyer plus a bonus to selling agent of $3000 for a successful closing. The project has approx 90 lots with avg selling price of $200k.
I need response to if this commission structure can work or am I getting into an arrangement that want produce for the developer or my company. Also any suggestions to a commission structure that will promote co-broke sales and get the area company's to work together to get this project sold.
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RESPONSES

  • Posted by Inbox_Interactive on 11/4/2009 at 6:29 AM Accepted
    I don't follow.

    My understanding is that he can list his properties only with one agency. That agency is the one who puts them in MLS.

    I also don't understand what fear there is for lack of participation from other agencies. He's offering 4% to the selling agency plus a $3,000 bonus. That should entice any agents and Realtors to get involved.

    I don't see what the issues are here.

    If these are new homes, is the builder going to have a traditional sales trailer, etc.? Are there any models?
  • Posted on 11/4/2009 at 2:53 PM Author
    This is a new waterfront developement and will be selling lots only. I don't have a problem doing the 1% listing fee to just put in MLS(multiple listing service) as the developer is asking from us to do. He is also willing to pay a selling fee of 4% with a $3000 bonus to selling agent. I think the developer would be better served if the commission structure was 2% to listing agency and 5% to selling agency(which is 2% higher than normal). The 2% give him all our services and awards the selling agent with an above average commission. The developer just wants all the local realestate companies to sell his product and not seen as working with just one company.Is there a better commission structures to consider?
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