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Quick question: Typical real estate commision of ag land...NE Nebr
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00rooster
Posted 9/28/2015 22:48 (#4814034 - in reply to #4813968)
Subject: RE: Quick question: Typical real estate commision of ag land...NE Nebr



steelguitar - 9/28/2015 22:13

00rooster - 9/28/2015 22:03

Alright, thanks guys, I had 3.5% in my head and wanted to make sure I knew what I was talking about. Its pretty astonishing to me that @ $8K land the RE agent will make as much off the transaction that would take a tenant farmer 3-4 years or work and risk to earn. And what risk does the RE agent take? I clearly am in the wrong business..........


If it's so low risk and such easy money why not get license and do it on the side? If the commissions paid are so high, you could easily cut the rate by 2/3 or so, get a lot of business, and make some serious coin.


Might be a bad time to get into that venture. I'm more about eliminating the middleman if I can. Its been some pretty easy money the last 10 years with people falling all over themselves to pay premium prices for ag land. When a property came up it was sold in 2 weeks...maximum. Sometimes it was moved before the ink dried on the postcards. I ain't the ole days of a property listed for months or even years before it moved....but we might be heading back there.

I'm in the middle of an internal debate over chasing a property that someone I know is selling. Like usual they've had smoke blown up their rears by RE agents, and I'm not willing to get to their number. I could go a little more, but I'm not itching to own that particular farm(lot of slope and obstacles)...And I just don't know how soft the market may have gotten in the last few months. I know of several sales 6 months ago, but am considering holding my powder. Looks pretty bleak this year, and not much better next year. I'm thinking for the foreseeable future you need to be able to make money at $3.50 corn and $8 beans. And so I'm trying to determine what land values would be at those price levels.

And it looks to me like it should be another 20% lower than they might have been at the last auction I was at in early spring.

If I don't give them what they'll accept they are going to list it publicly with an agent, so I could take a gamble and let it go to auction or listing...and possibly get it for less than I've already offered. Or someone else will be the new owner. Decisions, decisions.....but I don't think I'd feel bad if it got away



Edited by 00rooster 9/28/2015 22:52
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