‘Million Dollar Listing:’ Here’s How Much the Agents Really Spend On A Broker’s Open House

by Jeremy Spirogis
Some of Bravo

Million Dollar Listing stars know find out how to promote actual property. Most of the houses the brokers promote vary between $10 million and $20 million, which implies they pull out all of the stops to search out the right purchaser and earn a hefty fee. Part of securing a purchaser means throwing a promising dealer’s open home — and these brokers don’t spare any expense.

Some of Bravo's 'Million Dollar Listing' cast
Some of Bravo’s ‘Million Dollar Listing’ solid | Charles Sykes/Bravo/NBCU Photo Bank

Each ‘Million Dollar Listing’ agent can simply earn a six-figure fee in a single residence

It’s not known as Million Dollar Listing for nothing. The standard Bravo present highlights essentially the most luxurious properties between New York City and Los Angeles, which implies the actual property brokers promoting these lavish houses stroll away with a sizeable fee test.

In actual property, fee is negotiable, however it sometimes hovers round 6% per sale. Of course, that’s cut up between the 2 brokers (and a portion of that proportion goes to the brokerage, too), however when all is alleged and performed, a $10 million residence sale will normally result in someplace upward of $180,000 to every agent.  

The price of a dealer’s open home straight correlates to the house’s potential fee

When brokers introduce a house to the market, they typically host a dealer’s open home (generally known as a “broker’s open”) to draw consideration to the house. Broker’s opens are primarily non-public open homes meant just for brokers and brokers. The concept is that an agent might need a possible consumer, or on the very least can provide perception into their very own ideas on the property and its value.

The quantity spent on a dealer’s open will depend on the price of the house. A home listed at $200,000 received’t warrant an upscale, $20,000 social gathering for brokers. However, a home listed at $20 million may.

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New Listing! • 10 Beverly Park • Beverly Hills • $27,995,000 . Located behind the guarded gates of Beverly Park, essentially the most prestigious and wanted Beverly Hills neighborhood, this immaculate Colonial property boasts approx. 13,500 sqft of residing house sited on ~4.25 lovely acres. Offering extraordinary metropolis sweeping views, the property consists of remarkable high quality and design. The a number of residing areas embrace a cooks kitchen, nice room, eating room, lounge, opulent workplace, spectacular theatre, totally geared up health heart, steam room and sauna. The Master Bedroom with a spacious lounge space is full with luxurious his and hers loos and a couple of giant customized closets. There is an extra 5 bedrooms, a number of with ensuite loos. Featuring giant home windows and doorways, the inside areas look out to the pristinely manicured gardens, glowing pool, gazebo, outside kitchen and fountain making the right scene for entertaining in addition to a soothing escape.

A post shared by Josh Altman (@thejoshaltman) on Aug 25, 2020 at 10:38am PDT

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The ‘Million Dollar Listing’ brokers can spend hundreds on one social gathering

On Million Dollar Listing, dealer’s opens virtually all the time price within the hundreds. In season 12, James Harris and David Parnes spent $6,000 on a dealer’s open, which included meals, workers, and decorations. However, the house was listed at $8,995,000, which means they every may stroll away with a possible $270,000. In that case, the associated fee was justified.

Josh Altman additionally goes all-out for his dealer’s opens. Also in season 12, Altman hosted different brokers at his “castle” itemizing, the place he spent practically $10,000 on decorations, costumes, and meals, which included a roasted pig. Over in New York metropolis,

Marketing movies can price upward of $500, relying on the house.

Real property isn’t all glitz and glam

Though the Million Dollar Listing stars seal the deal each episode, the world of actual property isn’t that easy. Agents can spend hundreds on advertising houses and internet hosting occasions, solely to lose the itemizing if the home sits available on the market.

Though Bravo hardly highlights a time when brokers don’t provide you with a giant sale, Josh Altman is aware of all too nicely what it’s wish to lose he cash. He as soon as revealed that he misplaced his first $1 million — and it solely prompted him to work tougher. Spending cash to make cash is true within the sport of residence gross sales; dealer’s opens and advertising prices may appear excessive, however they’re definitely worth the expense if it means discovering the fitting purchaser.

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