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- Realtor Commission on Land Sales Explained
- Realtor Fees For Land Sales: 5 Things to Know
- Should I Use A Realtor When Selling Land?
In land sales, like residential property transactions, the seller determines and pays the commission. This fee typically covers both the seller's and buyer's agent fee, which is split between them. The average commission rate is 5.49% nationwide. But commissions on land sales, especially for lower-priced properties, can be much higher.
1. Commission on land sales is negotiable
Realtor commissionsfor land sales are not fixed and typically vary between 5-10%. Importantly, all realtor fees in any property transaction, including houses, vacant lots, or extensive farmland, are open to negotiation. While negotiating realtor feescan be daunting, it offers the potential for significant savings. For example, lowering the commission to 1.5% on a $400,000 land sale could save you $6,000 compared to the typical 3% fee. However, successful negotiation isn't guaranteed, as evide...
2. Land type may affect your rate
The type of land and required services play a significant role in your expected commission rate. In regions like the southern U.S. or areas with more affordable vacant land, commissions for smaller plots or farmland can reach 8–10%. Higher commissions might also apply to properties posing higher risks for agents, such as undeveloped land or plots without a septic system. These factors introduce complexities since buyers typically intend to build on the land, expecting it to be suitable for co...
3. Realtor fees go up on special use
Broker fees for land sales can reach up to 10% for properties requiring extensive preparation and marketing efforts. For example, land designated for mobile homes demands extra tasks such as obtaining maps, septic and drainage information, and water quality tests from wells. Selling such properties might also need drone photography to provide aerial views highlighting the land's size and boundaries, aiding potential buyers in making well-informed decisions. The commission structure looks diff...
Utilizing a realtor to sell land is highly recommended. Despite the higher commissions associated with land sales, a realtor's expertise proves invaluable for most sellers. The effectiveness of realtors is reflected in the fact that 90% of all buyers and sellers opt for agent assistance in their transactions.Sellers represented by agents also typic...
Our real estate agents and brokers specialize in purchasing, selling and leasing land, including farm and ranch land, hunting and wildlife land, timberland, country homes, waterfront properties, recreational land, and more. Contact a land professional below and check out our Land for Sale or Land for Lease.
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Nov 4, 2021 · As with home sales, the commission rate for land is typically set by the listing agent and paid for by the seller. Yet there’s a wide range of what the commission on a land sale can be.
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related to: real estate agents land salesWe specialize in the sales and marketing of premier ranches & land. List your proprty with confidence. Contact us today for a free consultation.
realestateagents.com has been visited by 10K+ users in the past month
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Tour real estate virtually and connect directly with the property's listing agent now. The #1 fastest growing real estate search site. Begin your home search here.
