Quote:
Originally Posted by valuemkt
For the sale of our house in Atlanta we have set a list price, and expected sale price and a minimum acceptable price. The realtor we've chosen has agreed to a performance based fee schedule that is set a 5% of the minimum price, 6% of the expected price price, and 6.8% of the list price. The commission is based upon sales price - any concessions - any improvements: essentially net proceeds before closing costs.
This prevents the ongoing issue of the realtor only losing $ 600 in commissions for every $10,000 in price. In this case, they would lose $3,333 .. which is real money to them .. If we get 100% of list, we'll be happy to turn over more than the common 6% fee as a bonus.
The "expected" price is 97.5% of list, which is what he claims is his average. The minimum is 95% of list.
Sounds complicated, but it puts some skin in the game for them, or as he says, a performance based compensation ..
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I think that is an excellent idea that I have never even heard of. But, even if you have a fixed commmission percentage, you can always renegotiate the commission when an agent brings you a low offer. I have done it successfully several times. When you sign a listing agreement, the only offer you are required to accept is a full price offer, and the commission is negotiable if you get a lower offer.