Why are real estate agents paid so much that list and sell million dollar homes?

Question

Agents should be paid but when homes go for millions of dollars their commission can be excessive. Why isn’t there a flat sales fee for listing million dollar homes like 20-100k or something like that? I understand That is why they usually charge a percentage of a sale but not including the buyer agents commission a listing for a multiple million dollar property should be fixed when the property sells

Can I ask a listing agent to list my 4 million dollar home for 30k if it sell but still give the buyer’s agent their commission?

30k is still a lot of money

what is the answer here??

Anyone know??

Answer 1

I think it has a lot of changes in our society regarding transaction matters. It has to do with the human weakness of greed, selfish and fear. As it is only the ******** money, you can negotiate with a fix commission of 30k for selling your 4 million dollars home. I guess many real estate agents are willing to accept it. Or you can sell it by yourself without paying any commission. The trend is to pop up the real estate values by selling it at a higher price then the bankers, real estate developers, stock exchange, and the home owner are all making money. You are one out of the million for just look into the cost of commission. The real estate values are probably all over raised its values by like five folds or at least ten folds in Hong Kong. It has created a lot social and economic problems in Hong Kong because the inclined property values more than ten times as it really worth. Many poor citizens in Hong Kong and Japan, probably many homeless in the US now. I guess the commission is paid by the rule of percentage. That's why the real estate values ups in Hong Kong rapidly making the tenants to pay for the extra high rent both in residential and commercial rentals. Many sane and ethical peoples in Hong Kong want to see the stock markets go crash and property values go down to the deep valley. Simply because many peoples can't really afford to live Hong Kong, the number five most expensive city to live in this world.

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Answer 2

I doubt it, he will be out a LOT of money just advertising.

It is hard to sell homes that high, there are so few buyers.   You have to remember the agent splits his commission with his broker and also pays income tax.   If he pays 2k on ads he would earn a whooping 7k.

You can offer whatever you want, commission is not set in stone.

However, you get what you pay for, you want a cheap agent, you get a cheap agent.   Cheap agents come across that way and are not going to be able to sell to your mot so cheap buyers.