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bajafreaks
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Registered: 3-27-2007
Location: Gardnerville, NV./ Los Barriles BCS
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Realtor commission %
Contemplating on selling my lot, after talking to a local realtor I'm told the going rate is 10% commission. I know this is negotiable but is the
starting point now 10% rather than the common 6% ? Then there's the IVA tax and capitol gains, makes it a little pricy to sell a piece of property in
Mexico.
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Terry28
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10% is common for raw land. 5-6% is for homes...of course everything is negotiable...start low....
Mexico!! Where two can live as cheaply as one.....but it costs twice as much.....
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Lee
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Quote: Originally posted by bajafreaks  | | Contemplating on selling my lot, after talking to a local realtor I'm told the going rate is 10% commission. I know this is negotiable but is the
starting point now 10% rather than the common 6% ? Then there's the IVA tax and capitol gains, makes it a little pricy to sell a piece of property in
Mexico. |
I assume since you own land, you have at least some experience with MX RE transactions. Don't choose an agent based on lowest commission. 10% is
traditional and for a top agent, I believe you'll get your money's worth.
The agent selling my land in Todos is a MX national gringo, fluent in Spanish and knows contracts, notaries, and all the other local agents and
respected by them. I like and trust him explicitly.
If IVA, capital gains, and commission will leave you with less equity, and that's the cost of doing business. Your motivation determines how much
all of this is worth to you.
Some agents are worth 10%, some less, some more. I'd talk with several agents, do a informational interview, determine how motivated they are
(getting your listing), how they'll market your land, see if you ''click'' with them. I vetted my agent originally and did updates (down the road)
to see how he was perceived in the community and what his reputation currently was. All good.
US Marines: providing enemies of America an opportunity to die for their country since 1775.
What I say before any important decision.
F*ck it.
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DianaT
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NEGOTIATE --- 10% is really quite outrageous UNLESS the agent handles everything with the notario, gets all the paperwork from the municipality, etc.,
writes up the initial contract, then they probably earn it on land --- not on a house, however.
But some want to charge 10% for doing no more than throwing the lot on a web page and then turn everything over to someone else to do all the work,
and you could do that.
Negotiate and be sure the agent actually knows something about real estate as some only know how to collect money and are clueless. And they are apt
to tell you anything.
Negotiate, negotiate. Even in the states, there is no such thing as a "normal" or going rate. It is all negotiable. Just be sure they will actually
earn their money.
There are good ones, and then, well then there are the others.
[Edited on 4-10-2015 by DianaT]
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bajafreaks
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We're going down in a few weeks and plan to talk to a few agents. The one I spoke with is probably the top producer in the area has been there a long
time.
Lee I like your statement "your motivation determines how much all this is worth". Our plan was to build on the property but seeing some of the great
deals to be had on existing homes we're toying with the idea of using the money from the lot sale and putting it toward a house purchase since the
price of construction would actually be higher. Just need to weigh all of the options.
[Edited on 4-10-2015 by bajafreaks]
[Edited on 4-10-2015 by bajafreaks]
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bezzell
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fyi ... I believe there's no IVA tax when selling land / residential. (Yes on commercial)
(But there is IVA on the agent's commission. (Agree w/ Diana re 10% !!))
brief IVA talk here ... http://www.bajainsider.com/baja-business/taxobligationsmexic...
scroll 7/8ths down this page to "Costs and Taxes when Selling a Mexican Property" .... http://www.mexperience.com/property/buying-selling-real-esta...
but, things can change ! (maybe someone knows the latest?)
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durrelllrobert
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Mexican Realtors deserve bigger commissions than those in the US because they have to study and go to school so much longer in order to be licensed by
the municipality (not to mention the bribes they have to pay to keep out of jail).
Bob Durrell
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gnukid
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CC be careful, talk to someone else
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Bob and Susan
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does it really matter what the commission is
if you are happy with the net $$$ at the end of the sale?
maybe a sliding commission the longer the agent lists the property.
ex: 15% first 30 days...10% first 60 days...5%
limit contract
I would ask for a written marketing plan with performance guarantees
It's actually worthless to limit it to a realtors website or craigslist.
Craigslist is for the "low-end" sellers and buyers...most are looking for low-end or almost free sales.
The realtor needs "real contacts" and a plan
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DENNIS
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Another thing.....find out any way you can how much your realtor is offering your property for sale. It used to be common here for realtors to offer
it at a price far exceeding your sale price, and keeping the excess.
Of course, the higher the price, the fewer viable prospects there will be, but your realtor has nothing but time and can wait forever if necessary.
"YOU CAN'T LITTER ALUMINUM"
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monoloco
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The Todos Santos realtors have conspired to set the commission at 10%. Any realtor who charges less gets booted from the MLS.
"The future ain't what it used to be"
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Katiejay99
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Yes and there are Realtors who are not on the MLS because of that so don't think that the only properties available are those listed on the MLS
because we have some awesome Realtors who could be called "independent".
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J.P.
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| Quote: Originally posted by Katiejay99 | | Yes and there are Realtors who are not on the MLS because of that so don't think that the only properties available are those listed on the MLS
because we have some awesome Realtors who could be called "independent". |
The term REALTOR is copy righted and can only legally be used by some one that is a member of the Board of Realtors.
If you are not a member you are a Real Estate Agent,
But this is MEXICO and you can call yourself anything you want to.
[Edited on 4-11-2015 by J.P.]
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bezzell
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Nice job. Now she understandably bailed, preventing real world examples to be shared. 
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Tioloco
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Real estate fees are worth whatever you are willing to pay. Just like any other service. They make nothing for their time if it doesn't sell.
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cabobaja
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Mono, do not feel you know what you are speaking of.
Todos Santos MLS commissions:
Up to $150,000 10%
$150,001-$300,000 9%
$300,001-$600,000 8%
$600,001-$2,000,000 7%
Over $2,000,000 6%
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monoloco
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| Quote: Originally posted by cabobaja | Mono, do not feel you know what you are speaking of.
Todos Santos MLS commissions:
Up to $150,000 10%
$150,001-$300,000 9%
$300,001-$600,000 8%
$600,001-$2,000,000 7%
Over $2,000,000 6% |
But basically the rates are non-negociable if a realtor is in the MLS. Correct?
"The future ain't what it used to be"
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DianaT
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Registered: 12-17-2004
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| Quote: Originally posted by monoloco | | Quote: Originally posted by cabobaja | Mono, do not feel you know what you are speaking of.
Todos Santos MLS commissions:
Up to $150,000 10%
$150,001-$300,000 9%
$300,001-$600,000 8%
$600,001-$2,000,000 7%
Over $2,000,000 6% |
But basically the rates are non-negociable if a realtor is in the MLS. Correct?
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Some Realtors in the states will try and tell you that and it is garbage. They would all like you to think it is etched in stone.
BTW-- I was a Realtor in one of my past lives.
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monoloco
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| Quote: Originally posted by DianaT | | Quote: Originally posted by monoloco | | Quote: Originally posted by cabobaja | Mono, do not feel you know what you are speaking of.
Todos Santos MLS commissions:
Up to $150,000 10%
$150,001-$300,000 9%
$300,001-$600,000 8%
$600,001-$2,000,000 7%
Over $2,000,000 6% |
But basically the rates are non-negociable if a realtor is in the MLS. Correct?
|
Some Realtors in the states will try and tell you that and it is garbage. They would all like you to think it is etched in stone.
BTW-- I was a Realtor in one of my past lives.
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From what I understand, it is set in stone. If a realtor agrees to cut their commission, they get booted
from the MLS. In the states, I believe it would be called "price fixing".
"The future ain't what it used to be"
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DianaT
Select Nomad
Posts: 10020
Registered: 12-17-2004
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| Quote: Originally posted by monoloco | | Quote: Originally posted by DianaT | | Quote: Originally posted by monoloco | | Quote: Originally posted by cabobaja | Mono, do not feel you know what you are speaking of.
Todos Santos MLS commissions:
Up to $150,000 10%
$150,001-$300,000 9%
$300,001-$600,000 8%
$600,001-$2,000,000 7%
Over $2,000,000 6% |
But basically the rates are non-negociable if a realtor is in the MLS. Correct?
|
Some Realtors in the states will try and tell you that and it is garbage. They would all like you to think it is etched in stone.
BTW-- I was a Realtor in one of my past lives.
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From what I understand, it is set in stone. If a realtor agrees to cut their commission, they get booted from the MLS. In the states, I believe it
would be called "price fixing". |
It would be interesting if the MLS is price fixing in Baja --- that would be interesting.
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