[quote=njtosd]As a former resident of the midwest, I am very curious to know what portion of the midwest you’re talking about. I’ve never heard of such rates.[/quote]
KS, OK, TX in primarily rural areas and small towns with <8000 pop. There may only be 1-3 RE brokers serving a 40-80 mile radius area. An out-of-area broker would charge the higher end or more, for travel. Many of the properties are agricultural and/or commercial and may or may not have houses or buildings situated on them. There may be water rights issues, oil or mineral rights, egress and ingress issues, livestock leases and/or contracts with the government on the land use or nonuse, etc. These brokers are typically natives to their market area and VERY experienced.
Most real estate brokers and sales agents sell residential property. A small number—usually employed in large or specialized firms—sell commercial, industrial, agricultural, or other types of real estate. Every specialty requires knowledge of that particular type of property and clientele. Selling, buying, or leasing business property requires an understanding of leasing practices, business trends, and the location of the property. Agents who sell, buy, or lease industrial properties must know about the region’s transportation, utilities, and labor supply. Whatever the type of property, the agent or broker must know how to meet the client’s particular requirements.
(emphasis added)
You might come to the conclusion that these RE brokers have a “monopoly” on land sales in their area but wouldn’t you want to avail yourself of their knowledge if you were a seller or an out-of-town buyer?
