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.

87% of people use the internet to search for property

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 – What is reasonable?

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:

1. Don’t accept the first offer

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.

2. Consider selling it yourself

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.

3. Share the selling process with an agent

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.

4. Shop around

If your agent is not prepared to negotiate on the commission, find another.

5. High demand suburbs don’t need real estate agents

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.

6. Ask the right questions

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:

    • How many hours a week will you dedicate to selling my property?
    • Can you provide a weekly summary of your work?
    • How long does it take you to sell a property on average?
    • What are the TOTAL costs if we sold through you for our price?
    • How many properties have you sold for above the vendor asking price?
    • How many properties have you sold for below the vendor asking price?

The buyMyplace advantage

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?

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