Hi, the title says everything doesn’t it?
Appreciated it if some one can let me know what are the cost involved if you sell your property through an agent?
1. advertising fees
2. agent commission
3. Auction fee (if req)
say for a property worth $300K, Thanks guysYou may save these fees by selling yourself, but an agent may be able to sell it for a higher price and quicker. This needs to be considered as well.
I have found sales commissions to be around 2.5% of sale price. Some charge extra for advertising, others include it in the fee.
Terryw
Discover Home Loans
Parramatta
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I agree with Terry on this one, plus you should also factor in the costs on your time and the inconvenience. If you sell it yourself you’re going to have to find buyers, advertise, have open houses, make/return phone calls, draw up a contract, negotiate, etc etc.
I usually stick with the rule of pay professionals to do what they do best, I don’t sell houses for a living so I leave it to the people that do, same as I don’t draw building plans so I leave it to the people that do.
I think that the real estate agents fees seem quite reasonable if you compare this with the factors that Terry mentioned, plus your own time.
Up to you though, if you already have some buyers on the line (i.e. people you know), may be a way to save a $ or 2.
D.
I also agree, a skilled real estate agent can certainly negotiate a better price, the trick is to find one. Below is a real scenario of a private sale we did a few years ago, a commercial property in Adelaide.
Agent’s appraisal $800 to 850,000
Agent’s commission $25,000
Advertising $5000 (sign on top of the roof cost $1500)We had it with an agent for a few months and had an offer for $800,000, it fell through!!!!
We asked where they get their signs made and they reluctantly told us [biggrin]. We went to the same sign company and put the same sign up on top saying For Private Sale, Please contact vendor…
Cost of sign was $500!!!! (agent made a $1000 profit on advertising)
Every agent in Adelaide called us in the first week after seeing the sign (it was on a high profile property on major street corner).
First offer we got was $900,000, we told people we were looking at offers around the $1mil mark and had put together lots of proof to justify it (which the agents did not!!!). We got 3 offers using a private treaty method of sale.
It was sold that month for $940,000!!!! [biggrin]
To us, that was proof that we had better people skills and negotiation skills than most agents [aacool]
It was easy for us to get into the industry and obtain a license to sell and rent real estate, there never was any real competition [biggrin]
Investment Property Management
http://www.adprop.com.auVery interesting Dr X.
Funny about agents calling. A friend of mine sold his unit privately, he put an ad in the paper and specified “no agents”. For the next week he was called by no one but agents trying to get a listing.
Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe†in subject line.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
Just goes to prove, YOU ALWAYS GET WHAT YOUR MIND IS FOCUSED ON which may not be exactly what you want [biggrin]
Investment Property Management
http://www.adprop.com.auGreat story Dr x _ it would be hard to find someone who believed in the product (your house) as much as you do! Perhaps this is why the results did not come through the agency.
There was an article in the paper here on Sunday regarding the fact that 90% of those that start in Real estate don’t last longer than 12 months as a sales agent in the industry. Not sure if that is the same in OZ.
The point of the artlcle was that there is a serious drought of experience in the industry and what we perceive as slackness and laziness is just plan lack of skill and experience – and hence lack of confidence in their own ability. Also a point in the article was that 30% of the agents make 70% of the sales and the average wage over here was only 34k (obviously skewed toward the 30% who are doing all the selling)
cheers
http://www.cashflowproperties.co.nz
Don Nicolussi | Mortgage Broker - Home Loan Warehouse
http://homeloanwarehouse.com.au
Email Me | Phone Me"I think of finance as a technology, a way of getting things done." Robert Shiller
I have sold houses both through agents and privately.
My advice is, if you are confident that you have the necessary copy writing, marketing and negotiation skills – plus the time – then why not have a go? On the other hand, if you know nothing of the contractual process, are prone to becoming too emotionally involved or are not a good communicator/seller then forget it.
I normally sell privately at first. I’ll list the property on one of the FSBO sites, do a bit of local letter boxing, put up a visible sign and see what happens. If I get no bites at the price I want (which I calculate after getting three appraisals by different agents and using my local knowledge of comparitive sales), then I pass it straight back to an agent I know and trust. They can generally get wider exposure – particularly from interstate – but I reckon that most houses are bought by locals (it would be interesting to know if this is correct) who you can connect with as easily as an agent.
One final point, I would avoid trying to sell something that was either unusual or at the upper end of the market. Seek out an experienced agent for that sort of thing. Anybody can change a tyre but few can rebuild an engine, if you get my drift.
Best
Almor
Hi DLPP,
The same high turnover and lack of performance by real estate agents is true here in OZ and that certainly is a limitation in the industry.
My quote “You always get what your mind is focused on” is my interpretatation of the law of attraction described in things like the secret and other similar mindset/linguistic literature that I have come across (can’t remember names, I tend to read alot and go through things very quickly!!), but it all makes sense to me [biggrin]
Investment Property Management
http://www.adprop.com.auwill have to get through the secret this week – started that download a few times from the link on ss
http://www.cashflowproperties.co.nz
Don Nicolussi | Mortgage Broker - Home Loan Warehouse
http://homeloanwarehouse.com.au
Email Me | Phone Me"I think of finance as a technology, a way of getting things done." Robert Shiller
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