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From: Neil Iffland
A seminar I attended suggested that when selling through an agent one should negotiate a 2 (or more) tiered commission rate with the agent. For example up to fair market value they get the usual 1 or 2%, then if they get say 10% above market they get 5% of the extra 10%. If they get 20% above market they get 10% of the second 10% above market etc.
The idea being to give them a real incentive to negotiate an above market sale price, rather than just get a quick sale at market price. Of course the vendor has to independently & accurately determine what the fair market value is for this to be worthwhile.
Has anyone had any experience or have an opinion on this ?
A seminar I attended suggested that when selling through an agent one should negotiate a 2 (or more) tiered commission rate with the agent. For example up to fair market value they get the usual 1 or 2%, then if they get say 10% above market they get 5% of the extra 10%. If they get 20% above market they get 10% of the second 10% above market etc.
The idea being to give them a real incentive to negotiate an above market sale price, rather than just get a quick sale at market price. Of course the vendor has to independently & accurately determine what the fair market value is for this to be worthwhile.
Has anyone had any experience or have an opinion on this ?
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