Hi! I’m selling a property in NSW shortly. What should I be aware of before signing a contract with a real estate agent? Is exclusive best? What commission is reasonable these days on $400,000 property. Any ideas would be appreciated.
mamj[biggrin]Commission is about 2% to 2.5% but you could vary this. eg set a price you want, and say you will only pay 1% for any sale below this, set a price a bit higher and offer more – an incentive for them to sell it at a higher price.
Also beware of signing on for 3 months. This is a long time, and some do not perform until the 2nd month when they think they may lose you. Try signing on for one month. If they can’t sell during this time, but are trying hard, then you could sign up for another.
Exclusive is probably better. Places with multiple signs on them appear to be desparate for a sale. But this tactic could work, by attracting more buyers.
Maybe you can add a clause saying they get nothing if you find your own buyer.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks terryw – good ideas
mamj[biggrin]Mamj, I’m not sure about NSW but in Qld I’m also careful to ensure that the agent’s appointment says that commission is only earned when settlement is achieved (and not some earlier point – like the contract being signed). You don’t want to pay them unless it all goes through and you have the cash in your hand.
SKM
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