I'm looking at selling an IP I own, a studio apartment in Melbourne CBD, and have spoken to the agents through which I bought the property. They have quoted their fees at $249 advertising fee + $249 admin fee + 3% commission.
I am fond of this agent as the they were the acting agent for the vendor when the building was built and my apartment is also leased through them. Nonetheless, I would like to get an idea of what others are charging. I will be speaking to other agents in the CBD but I would also like to get a firsthand idea of what others have paid.
Hi Bator.h,
I'm currently selling in regional vic, fees are 3% + gst and advertising/admin is $600 + gst, but is only payable if/when sold.
Seems like you are on the right track.
Heya, I just sold in a country town and paid 2% plus GST and $500 advertising but I am starting to think this was a bit exceptional.
3% sounds pretty standard.
Sorry to hijack this.
For a reputable real estate agency, is the selling fees negotiatable? If yes, what is the lowest will they accept?
if i offer 1%, will they accept it?
Cheers
NitNitro, how hard do you want the agent to work for you?
But seriously, yes the rate is generally negotiable (some agents are bound by their franchise agreements as to what they will charge). If it was an easy sale, then 1% may be doable, if it was a difficult one or real low value, then 3.5% or more may be justified.
Hi: In Qld the going legal rate is $900 on the first $18,000 and 2 1/2% on the rest. You pay the advertising rates as per advertisement. I can give you the name of a person who negotiates sales commission and will definitely talk a deal on the commission. Try A1 Independant Real Estate.
Look at someone like GoGecko Real Estate (http://www.gogecko.com.au/) to list your property with as their commission is capped at $5950.00 (no matter what the sale price) They also have a calculator on their website to work out the comparable rate you would be charged by a traditional Real Estate Agent.
Because their rate is capped you can list your house at a price which would encorage buyers and help sell quicker, instead of what I have seen most people do which is ADD the commission onto the price they want for their house and in turn attracting les intrest in their property.
Good Luck!Wasn't the original question about fees for property managers, as opposed to selling agents?
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
I'm assuming it's the selling comms with the first sentence being "I'm looking at selling an IP I own"…
I recently sold a 2 br townhouse in Artarmon, they charged 2.0% of sale price.
This included everything. And by everything, I mean everything.
I don't know any real estate agent that will go lower than 1.6% of sale price, unless we're talking about a property value of $1m+…
I try to pay more if I can. Set a standard rate and then a bonus system based on higher sales prices.
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
Hehehe it did say selling. I am blind!
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
I'm an experienced commercial selling/leasing agent, and I wouldn't encourage you to screw the agents down too hard.
They're working for you and the fee they charge is their incentive to achieve a result. If anything I would try and get the marketing costs covered within the commission, thereby giving them more incentive to sell it.
If they go soft on the fee when you attempt to negotiate imagine how they're going to negotiate on your property.
My advice – get a great agent. If they're proactive the additional few thousand dollars spent will prove to be an excellent investment.
I recently got quoted $4-4500 for the auction advertising campaign and then a negotiable 2.2% selling fee from an agent here in St Kilda. First agent I had discussions with so it will be interesting to see what other agents are offering..
The auction/advertising campaign sounds a tad high. Mine cost $1500 just under 6 months ago and I also had 2.2%.
itsandrew
Go as far as you can see and you will see further.
How much does an auction cost in Victoria? And do you still pay auction fees if the property is passed in?
Agents in the area I work in are generally charging 1.5-2% + GST, and another $1,460 into advertising. I know some other agents in the area charge up to $4,000 in advertising.
Running ads in the Domain Leader magazine can be quite expensive, just a quarter page ad hits over $320 per week.
We work in and around Melbourne with fees as follows:
Commission: Up to 2.5% plus GST of the selling price – this figure is negotiable based on the estimated selling price and we always discount for current clients, i.e. if you bring the management of your investment property over for the purpose of selling which can make the process smoother and we would discount the commission.
Advertising: Depends on market conditions and the type of property. With advertising, it's not just about the cost – it's about maximum exposure with the right mediums to reach your target buyers. Auctions can run into the thousands, again it's dependent on the property – I would rarely auction an apartment as historically the additional advertising costs don't pay off in our area.
At the end of the day, whilst cost is always a consideration, it shouldn't be the only reason to choose a particular agent.
Asking around in the metropolitan area of Melbourne a standard rate seems to be around 2%+ admin/advertisement fee
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