Regardless of how much your property sells for, The Frugal Broker will provide all of the services noted on the Seller Services (Flat Fee) page for $500.
That said, the overwhelming majority of prospective buyers are represented by cooperating brokers who provide a wide range of important services (i.e. locating properties; scheduling showings; attending showings; researching property values; drafting offers; negotiating terms with the seller or listing agent; coordinating with the home inspector, lender, appraiser, insurance agent, title agent, closing agent, etc.). As such, most sellers offer to compensate cooperating brokers.
You are free to offer as little or as much compensation to cooperating brokers as you see fit. In Minnesota, the typical compensation offered to cooperating brokers is 2.70% of the sale price. In order to obtain the full marketing benefits associated with listing your property on the MLS, and to increase the likelihood of a timely sale, The Frugal Broker recommends that you offer cooperating brokers at least 2.70% of the sale price.
Cost Analysis
| Sale Price | The Frugal Broker’s Fee | Recommended Compensation for Cooperating Brokers (2.70% of Sale Price) | Total Real Estate Brokerage Expense |
|---|---|---|---|
|
$50,000
|
$500
|
$1,350
|
3.70% of sale price ($1,850)
|
|
$75,000
|
$500
|
$2,025
|
3.37% of sale price ($2,525)
|
|
$100,000
|
$500
|
$2,700
|
3.20% of sale price ($3,200)
|
|
$150,000
|
$500
|
$4,050
|
3.03% of sale price ($4,550)
|
|
$200,000
|
$500
|
$5,400
|
2.95% of sale price ($5,900)
|
|
$250,000
|
$500
|
$6,750
|
2.90% of sale price ($7,250)
|
|
$300,000
|
$500
|
$8,100
|
2.87% of sale price ($8,600)
|
|
$350,000
|
$500
|
$9,450
|
2.84% of sale price ($9,950)
|
|
$400,000
|
$500
|
$10,800
|
2.83% of sale price ($11,300)
|
|
$450,000
|
$500
|
$12,150
|
2.81% of sale price ($12,650)
|
|
$500,000
|
$500
|
$13,500
|
2.80% of sale price ($14,000)
|
|
$1,000,000
|
$500
|
$27,000
|
2.75% of sale price ($27,500)
|
If the buyer is not represented, then you don’t have to compensate a cooperating broker!