Selling a million-dollar home (or more!) isn't like listing an average home. Everything from the agent you hire to how you market your property will be different.
Homes priced at or above a million dollars simply have a smaller pool of potential buyers, which means they can take up to 2x longer to sell. It pays to work with an agent who understands how to market these luxury properties.
You'll generally pay 6% commission on a home's final sale price, which adds up to $60,000 for a million dollar home. The commission is split between the listing agent, the buyer's agent, and their brokers.
However, you can save up to $20,000 by connecting with a full service listing agent through Clever!
Clever pre-negotiates lower rates with agents, so you'll only pay a 1% listing fee ($10,000) to sell your million dollar home instead of the traditional 3% ($30,000). That's MAJOR savings.
How much does a realtor make on a million dollar home sale?
With a typical home sale, total commission will be around 6% of the sale price ($60,000 if the home sells for $1M), and be split down the middle between the listing and buyer's agents.
However, that adds up quickly when a home costs over a million dollars.
For example, if your house costs $2,000,000, you'll pay $120,000 with the 6% structure.
Commission for both agents (your own agent and the buyer's agent) is paid from the proceeds of the sale.
The sale proceeds are used to cover the buyer's agent fee because they're the person who actually brings a buyer to the listing. This commission is their incentive to present the house to their clients.
You'll agree to your listing agent's commission rate when you sign a listing agreement, the legal contract between you and your agent.
Commission at different price points
💲 Sale price
💵 Total commission*
*With standard 6% commission.
Selling a home that's worth over a million dollars can be expensive, but there is a way to save on realtor fees!
Sellers who connect with an agent through Clever can save $20,000 or more on the sale of their $1M+ home, because Clever's listing agents charge just 1%, rather than the 3% you can expect from a traditional agent.
Selling a $2M home? You'd save $40,000 with Clever!
The best way to sell a million dollar home
You should hire a real estate agent if you want to sell your million dollar home quickly for the best possible price.
Luxury real estate sales can be difficult because the pool of qualified buyers is so small. And potential buyers are expecting to be impressed when they make such a large investment. In most markets, you need a realtor who has proven experience selling $1M+ homes — they'll know exactly how to market your property and what local connections to leverage.
📊 Market snapshot: Why selling a million dollar home can be difficult
Note that expensive U.S. markets like San Francisco and Seattle are an exception. In these cities, million dollar homes are more common and demand for houses in this price range is much higher.
How top agents sell million dollar homes
Real estate agents don't just put a million dollar home on the multiple listing service (MLS) and hope for the best. Instead, they have to develop and execute on a marketing strategy that will attract interest from a very small pool of potential buyers.
When you pay an agent commission to sell your house, you're really paying for their years of experience and marketing know-how. A top agent can get more eyes on your listing and help you negotiate when offers come in so that you get the best price.
Here are a few of the many strategies that agents use to sell million dollar homes.
Professional photography highlights the best features of your million dollar home and ensures that the home's online listing looks as gorgeous as possible.
Buyers who are shopping for million dollar homes have high expectations, so your realtor can make sure that the photos in your listing grab lots of attention.
To sell your home, your realtor might create a 3D tour of a home using a tool like Matterport. 3D tours allow buyers to tour the house virtually, which can pique their interest before they come and see it in person.
Videos and drone photography can also be used to give buyers a better perspective of the property when they're viewing it online. This is especially helpful for large properties with multiple acres.
Many luxury real estate agents offer staging services, or they might hire a staging company to come in and decorate your home with new furniture, better lighting, or even a fresh coat of paint.
For luxury buyers, realtors may also focus on staging a space with lifestyle props like a pool table in the lounge or a convertible in the driveway to truly sell the idea of the home.
One of a realtor's most valuable assets when they're selling a million dollar home is their network — the agents, buyers, contractors, and other real estate professionals who they rub shoulders with every day.
Agents can talk to people in their network to find out if there are any willing and able buyers who are already searching for a million dollar home.
An open house can give serious buyers a chance to walk through your million dollar home.
Some luxury realtors offer refreshments and guided tours at an open house to make the event feel more formal and ensure that prospective buyers have a pleasant experience.
Real estate agents sometimes go above and beyond to market million dollar homes with other strategies that they wouldn't need to use in a typical home sale, including:
- Customized brochures to hand out to prospective buyers
- A giveaway for the highest bidder to help incentivize buyers to make competitive offers (like an iPad, a TV, or even a car!)
- Marketing on sites that advertise listings globally to attract foreign buyers
👋 Why you should sell with Clever
The commission on a million dollar home is a good chunk of money, but a full service agent brings a lot to the table if you want to sell for the best possible price. Thankfully, you can get the same support at a fraction of the cost with Clever.
Clever pre-negotiates more affordable listing fees with luxury real estate agents from top brokers, like Sotheby's and Berkshire Hathaway.
Clever has helped hundreds of million-dollar homeowners sell while saving thousands of dollars on commission — but don't take our word for it!
Here's what one customer who saved over $50K with Clever had to say:
If you're ready to sell your million dollar home, sell with Clever for a 1% listing fee! And, if you buy your next home through Clever, you'll get 0.5% cash back as well!
Clever is 100% free for home sellers and there's no obligation to commit to an agent if you aren't satisfied with your matches.
How do I save on commission when I sell a million dollar house?
The easiest way to save on realtor commission when you sell a million dollar house is to work with a low commission real estate company like Clever Real Estate.
Clever can match you with a full service real estate agent who has experience selling million dollar homes, but you'll only pay a 1% listing fee versus the 3% that you'd typically pay with a traditional listing agent.
What is the commission on a 2 million dollar house?
With a traditional 6% commission, a home seller would pay $120,000 in commission if they sold for $2 million. But, if you sell with a company like Clever, it would only cost $80,000!
Do I need a real estate agent to sell my million dollar house?
Technically, you don't need a real estate agent to sell your million dollar house.
However, you should hire an experienced agent who can protect your best interests and help you sell for the highest possible price.
How can you sell a million dollar home quickly?
An experienced real estate agent can help you sell a million dollar home quickly using a variety of strategies, including:
Networking with other real estate professionals
Can I sell my million dollar home to an iBuyer?
Maybe. Opendoor, the largest iBuyer, does purchase homes up to $1.4M in select markets, so you can try requesting an offer through their website.
iBuyers have strict purchase criteria, so in many cases they won't buy a home that's worth $1M.
iBuyers also pay less than fair market value for homes, so you won't get the highest possible sale price like you would on the open market.
Zillow. "Homes are Selling Incredibly Fast, Regardless of Price -- Defying Seasonal Norms." Updated Oct. 15, 2020.
National Association of Realtors. "2020 Profile of Home Buyers and Sellers." Page(s) 31.