Real estate question

[Royall]

I'm going to list my 1 acre lot down on the dead end side of 5th street off of Maku'u, in HPP in the next few days. Just want to ask one question. Is 10% for vacant land the norm? Is this one of those commission figures that has "wiggle" room?

[csgray]

Royall,
I think we briefly corresponded about this before, but we are looking for a lot to build a much smaller house on. Before you list it please contact me through punaweb, it usually goes through OK.

Carol

[Royall]

Will do Carol...

[Dinamight]

I understand all realtor commissions are negotiable.

We had a letter from a realtor a few years ago asking to list our vacant lot in HPP for 8%. I think houses are normally 6% commission and when I questioned one realtor she said she would list a house for 5%. You have been quoted 10% for a lot? I don't get this, it must be so easy to sell a lot as a realtor - you just drive your buyer to it, he/she looks at it and decides if they want it or not. There is nothing much else to see but what you can see. Selling a house must be more complicated. Why do realtors ask for so much commission to sell vacant land?

I would just list it for sale by owner or pay the $500 or so fee to put it on the MLS yourself and then give potential buyers directions if they want to go have a look. You could save yourself several thousand dollars, I would think. Or maybe csgray will buy it and you won't have to worry about any commissions

[missydog1]

10% but more likely to reduce if you have other business with them.

I think because the commission is so small. Remember the agent still has to split the commission in half with buyer agent and then half again with the broker.

So for a 20K lot, the 10% commission rate translates into $500 for the seller's agent gross before taxes and expenses for advertising. It may take a year to sell it. Vacant land sells slowly.

A $400K house at 6% would net a 6K commission or 12 times that, and the advertising would be less likely to gobble up the whole deal.