- robramjetMember@robramjetJoin Date: 2008Post Count: 8
Just wondering, in general how much flexibility have you guys found in RE Agents commission (if you are selling)? I know generally they ask for 2% plus GST, but from what I understand it is negotiable. But by how much? What's the lowest you've got them down to? Is it worth shopping around and playing them off each other? If you are confident that your property will sell in a couple of weeks then surely they should accept a lower commission?
Thanks guys!Scott No MatesParticipant@scott-no-matesJoin Date: 2005Post Count: 3,856
All depends upon how much the property is worth & what they are throwing into the deal eg marketing, exclusivity etc.MichaelYardneyParticipant@michaelyardneyJoin Date: 2001Post Count: 616
Real estate agents commisons are negotiable and vary form 1.5% to over 2.5%.
They are more likely to drop their commisions on larger properties.
I agree you shoud negotiate a commision, but I'm not sure playing one off against the other will work in your favour. You want someone to work hard for you to get you the best price for your property.
Don't "screw them" too much and then expect them to give you first class serviceJon ChownMember@jon-chownJoin Date: 2007Post Count: 254
Well said Michael. Funny thing though, I would be much happier to negotiate on sub $400K properties at the moment, I have so many people on my Buyer list. on the other hand, I am working much harder to sell $700K upwards and feel less likely to negotiate as I have usually earnt the commission. It's all in the negotiation though at the end of the day.
JonRealEstateQueenMember@realestatequeenJoin Date: 2005Post Count: 69
If you get an agent who is readily willing to discount their commission (which is money out of their pocket, it takes money off the table for their families) then why would they negotiate to get you a top price???
In some markets around australia, yes your home will sell in a few weeks, and with not much effort, but when the effort is applied, you can get even more money in a top market, and the agents that are good, they actually spend alot of time working with buyers to ensure that the buyers they bring through your home are qualified and ready to buy, and the good agents will know exactly what properties will suit who. And it has been proven that buyers will pay more money through an agent they trust, so you want an agent who has a good relationship with their buyers, and a proven success record of preimum prices.
Never ever play agents off against each other. The good agents will walk away because they wont want to be a part of that, and all you will be left with are the sharks, and it wont be a pleasant experience. These are the people who will tell you your home is worth 600, then pressure you into selling for 450k, and your left hating all real estate agents. In case you cant tell, i am an agent, but before i was an agent, i was an investor, so i understand your trying to keep costs down, but its like accounting, or lawyers services, you get what you pay for, and you do have to pay more money to get a premium price, and first class service. Look at it this way, the fee you pay to an agent, its an investment into your profits. The profit wont be nearly as high if you use a dodgy brothers agent.
Good luck, its tough trying to tell who is a good agent, and who is bad!