What I meant was that the time and effort by a realtor to sell a $400,000 or a $200,000 property are identical in most instances .....so why the higher commission?

The time and effort may or may not be identical. As well a lot of REALTORS invest more of their money in the $400,000 property. How many $200,000 homes do you see full colour glossy feature sheets and vertual tours for? How many $200,000 properties in comparision do you see advertised in the newspapers or Real Estate Magazines? I understand your question, and I can understand your concern. There are a lot of REALTORS with different fee structures: I encourage you to research them but I will tell you the main reason we expect more money for a more expensive property, we take on far more financial liability when dealing with a more valuable home. A lot of REALTORS invest significantly more money in listing a more valuable home (although I choose to run the same advertising programe regardless of price). I hope this answers your question, however you are welcome to send me an e-mail if you still want a more specific answer apatterson@sutton.com Also, remember, you have the right to negotiate the comission you pay; but the agent has the right to refuse to list your home if they don't agree to your terms. My reccomendation to you, find an agent who shows you why they are worth what they charge and I think you will be happy you did. I am more then happy to sit down and show you exactly why I charge my fee for results, and more importantly, why people are happy to pay me more then the "lowest bidder 1% guy".

I understand your concern regarding fees to sell your home. If you would like more information regarding my fees and how I can save you some money
selling and or buying please contact me at
jvella@sutton.com and start packing!
Im sure I can help you!

Another way to look at it would be why should we only make 1/2 the commission on a home of 200,000 when we have to work just as hard to sell it as the 400,000 home.
I treat all my clients the same wether its 200,000 or 2,000,000. I try to do the very best marketing/staging/negotiating with all homes i am entrusted with. To the home owner its usually their biggest and most important asset. At the end of the day what needs to be adressed is how much can we net you from the sale. Our commissions in essence should really pay for themselves. Its a lot of responsibility and liability representing people in their biggest transactions of their lives. I take it very serious and my clients are extremely grateful.
Hope this sheds some different light on the subject. All the best.

Hmm.. well

Does a master mechanic cost more or less than a regular mechanic - who would you want working on your porche? he can fix all cars.

Does a master carpenter cost more than an general carpenter - would you want him building your $$$ project? he can also build a step.

It may take a master Realtor to sell high end homes don't they deserve their fee - they can also sell any home. Its ultimately up to you whom you hire and if you feel they are worth the fee.

Dear Friend
you are right sometimes time and effort to sell homes are same, however often it differs due to various situations such as market condition, condition of property, buyers affordability etc. Also with higher price home realtor in general spends more time, effort and energy (e.g.,open house ) and marketing money( e.g.,print and online advertisement ). i always looks at what sellers want is, does seller want to pay less commission or want more money for property, does seller want just a for sale sign and would like to have all hassels or seller want a realtor who can provide service from start to the end of moving and accordingly i discuss service cost. i guess if you are geting return of the money you pay than you can justify higher cost. hope this fills some of your quest, should you have any specific question feel free to contact me at dharmendra@istayproperty.com

Good question. There is very little difference except, some real estate boards may charge a higher fee for selling a more expensive property. All other expenses remain the same, like ads in local papers, hi-lite sheets, colour brochures, etc. Most major websites are free. But as stated many times before, commissions are negotiable. Check!

Each property is unique and it is treated individually taking into consideration all kind of details, from location, municipal assessment, marketing, publicity, etc. If you would like to reach a clientel that can afford to pay a maximum of $200,000 you will have to budget for that type of buyers and so on.

Lina Castro,
Your Real Estate Broker
Adresz Reseau Immobilier
Castro, Your trinlingual real estate services, in English, French and Spanish with fidelity and integrity!
Phone: 514-458-9153
E-mail: linacastrosells@hotmail.com Just one e-mail away from you!
I am never too busy for your referrals to Montreal and surroundging cities, QC Canada.

I like Vincent's answer so much I think it's worth repeating.
Who says the commission on a $200,000 is appropriate?
For the amount of work and cost outlay involved, 2% of a $200,000 home that takes 60 days to sell is simply not enough to live off.
The benchmark should be the $400,000 home, not the $200,000 home.
Which means Vincent is correct in asking why we should sell a $200,000 for half price!

Often listings in the higher price range take longer to sell as there are less number of buyers. Therefore, they require more effort, time and advertising dollars to increase exposure and ultimately sell the property. Furthermore, higher priced homes require "higher end" advertising to attract buyers in that price range.

Hi
Very good point
New realtor companies are emerging now that offer pay for service. Expect to see this trend increase. Behind the scenes it is known that some realtors will offer substantial discounts on pricing if you list and buy with them.

Honestly…..I think that commission issue should be the least important discussion…...what should be discussed is the end result. People tend to focus on Realtors commission yet there is a classical saying…..."Money makes money”…...higher the commission higher the incentive for agents to promote and sell for higher price….”You get what you pay for.”....As far the Seller gets the desirable “net” from the sale…..commission should be no issue to “bicker” about.
Best regards,
Maria

In todays market place, real estate commissions is a hot topic.

Dating back to when I first was licensed as a professional Realtor over 17 years ago, sellers were similarly saying the exact same thing as today. "Why do I have to pay more commission to sell my house (example: value at $200,000) today than when I sold my last house (example: value at $120,000)...you guys are just making more money for the same work."

The answer is relatively simple. The cost to operate as a professional Realtor today, to raise our children, to heat and buy our homes, to put food on the table has increased as much for us as everyone else. So, Realtors are not really earning more money in todays world as in the past. It is all relative.

Many of us work extremely hard for our clients, putting in countless hours, much behind the scenes to help you achieve the highest possible price for your home. For $200,000, $400,000 or even a million dollars, the commission should play a small role in determining who you hire. As mentioned above, the most important element is doing a fantastic job for the client and helping them get the highest possible price with the least amount of aggarvation. That is our job!

If I can be of any service, feel free to contact me.

Ray Adelson
Homelfe/Cimerman R.E. Ltd.
Toronto
416-587-6163

Everything is negotiable, the type of service as well: so it depends upon different circumstances: some people offer higher commissions as well!

A great question ! Luckily in Toronto & GTA there are many different options available where you can still get top notch service for a lot less commission.
Check out our website www.team1percent.com . We are full real estate service providers with great innovative marketing & exceptional service. We are not a discount Brokerage, Our Service is top notch & the same is offered regardless of the price of the home.So yes, you will get the Professional hotography, Virtual Tours, Videos, Multiple Real Estate Boards exposure, Website Syndication, Open houses, Top Negotiator with close to 400 Transactions in last 5 yrs & the list goes on & on . All of that for a lot less then what you pay to your average Realtor.

A great question ! Luckily in Toronto & GTA there are many different options available where you can still get top notch service for a lot less commission.
Check out our website www.team1percent.com . We are full real estate service providers with great innovative marketing & exceptional service. We are not a discount Brokerage, Our Service is top notch & the same is offered regardless of the price of the home.So yes, you will get the Professional photography, Virtual Tours, Videos, Multiple Real Estate Boards exposure, Website Syndication, Open houses, Top Negotiator with close to 400 Transactions in last 5 yrs & the list goes on & on . All of that for a lot less then what you pay to your average Realtor.

A house that is staged well and priced right will sell no matter how much the advertsing marketing budget is.