sale commission

flying belgian · Dec 9, 2011

Any one know what is the typical commission an auctioneer would take on a land sale? My cousins sold there 550 acres of estate land for rumored $9000/acre here in south central Mn. Just wondering if that auctioneer can retire now.

2x4 · Dec 9, 2011

prolly 4%

ILLEFTY · Dec 9, 2011

Don't forget, that doesn't include advertising cost, and that ain't cheap.

tomNE · Dec 9, 2011

around here; it's all negoible! land sale like that would be well under 1% plus advertising.
now if u list it; the commision is higher but still negoible. if an auctioneer won't deal; he won't have much business as we have them coming out our ears around here.

MSD · Dec 9, 2011

Just visited with a pretty popular land auctioneer here in SE SD and he charges 4% plus advertising costs. On a small 20 acre parcel by the time we paid the commission and ads, with a $5000 acre sale, we would end up with $4700. Some sales his ads can run over $3000 but he does get it advertised and always has lots of sales.

Nathan (SD) · Dec 10, 2011

I haven't heard any rates lately. About 10 years ago I thought they were pretty out of hand. I had 3 friends dealing. 1 had a auction, 2 didn't. 1 guy that did, paid out $13,000 out of the sale. He put up $3000 to get them signed on. He was happy. I thought he was nuts.
Pretty good pay to 5 people for about 10 hrs of work. 2 cashiers and 3 auctioneers.

The other 2 guys sold their stuff themselves one piece at a time.

They all claim advertising costs. Big BS story in our part of the world. 2 of the regional publications and 1 free online site will bring you 95% of the people. The other 20 places they advetise is overkill cuz they aint paying for it. I don't know about prep costs but in the last 5 years the prep work has gone down hill with all auction guys.

As far as real estate sales. A ad on the the stop light post on main street would be enough advertising. It is always the land hogs and the guys next door bidding.

Livestock auction is a whole nother post.

El Toro · Dec 10, 2011

My former retired co-worker just sold his brother's big brick rancher at auction and they charged 25%. I helped build that house back in 1956. Most real estate agents charge 10%, but that may have gone up. This is in MD and commerical property is probably 25%. Hal

Anonymous-0 · Dec 10, 2011

Sold Dad's 200ac. farm 1 1/2 yr. ago auctioneer charged 2% and paid advertising. Brought a little over 1 million

kyhayman · Dec 11, 2011

7-10 around here. I think its reasonable. Sure thats a lot of money but I would assume thats why they are in business. Lots of overhead, lots of risk, lots of front capital needed. Its not just the people and cashiers working the sale its the office staff, accountants, and all the other stuff that makes his business go. Most that I know personally do quite well but I never begrudge anyone from earning an honest dollar. If they were getting too rich we would be over run with auctioneers, as it is now it takes 2-3 months around here to schedule any of them.

sale commission

flying belgian

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2x4

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ILLEFTY

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tomNE

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MSD

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Nathan (SD)

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El Toro

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Anonymous-0

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kyhayman

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