Paying real estate agents a commission fee is part and parcel of a traditional property sale. In most cases, the commission is on top of “advertising fees”. This fee will see your property placed in newspapers.
In today’s world where the internet has just about taken over everything from selling cars, banking, and trading shares, you have to wonder why an agent would recommend placing your property in a newspaper.
The fact is there is no real reason when there are alternative compelling reasons. Local advertising is catered for by the “For Sale” board outside your house. Using the board and the internet more than 91% of potential buyers are reached.
Real estate agent commissions for selling a house tend to vary from area to area. We have seen some agents ask for fees from around 1 to 1.5% to a whopping 4.5%.
It is difficult to know what the most appropriate fee is. You can compare the rates of local agents, however, most are aware of these tactics and simply don’t budge.
Here is what to be aware of when negotiating a real estate agents commission:
Property is in short supply and agents are more flexible than ever. Set what you consider a reasonable agent commission for selling your house and don’t budge.
The only way to save a lot of money is to sell it yourself. In most instances, you could save an average of over $19,000 in agent commissions and fees.
If you are unsure about selling yourself, tell your agent that you will try to sell your own house. Most agents will try to convince you that this is not a good idea. However, a good agent should not care. Make sure the agent knows that if you do sell you won’t pay any commission. This has to be written in the contract.
If your agent is not prepared to negotiate on the commission, find another.
If you live in a suburb which is in high demand (inner city suburbs) the need for an agent is lesser and so should the fee. Buyers are generally so desperate to get into the suburb, meaning a good house (or suburb) will sell itself.
Before considering a real estate agent and commission structure ask them how much actual time they will spend on your property. Get details of hours per week, then ask them to report on that every week. If you are paying thousands in agent commissions you are entitled to know how your money is being spent.
Here are some good questions to ask:
Here are some recent research results that we have from people who have sold through buyMyplace.
* 72% sold their house for more than the agent quoted.
* 100% of people who sold got more money in their pocket than if they used an agent.
* 81% of people saved over $10,000 in commission.
* On average it takes people four hours to sell their own home.
Knowing this, why would you ever pay a real estate agent a commission to sell your house? As they say, most properties sell themselves. So, ask yourself – why do you need an agent?