What is the going Commission for Agents?

Depends what you’re after. A complete marketing package would cost you around 5% +gst as opposed to just the selling comms.

Incentivise !

Make the guys actually work for you and incorporate that into the commission structure !

You want it sold quicker and for that you are able to be more flexible on your allocation towards the agent.

So make him work for it .. extra incentives and commission bonuses if sold within a certain period !!!

It will get the agent to work harder to get that extra commission and get you a better deal across your way.

THINK SMARTER NOT HARDER !

In outer suburbs the stick tends more towards the 2.5 % to a 3.3% (3%+GST). Costs for advertising can either be inclusive in which case the agent will try to rush a sale thru on you, or they can be additional .. usually paid upfront.

In inner burbs they can go as low as 1% .. since the value of the property is usually significantly higher. Advertising on these sort of packages is usually additional (and even expensive!)

And yes .. a good agent makes a difference with selling your property. Make your better judgement on that.

John, on a separate note have you thought how you might finance the deal as i assume they are all on the 1 Title.

Cheers

Yours in Finance

There is usually a much higher commission for off the plan sales. They can be much harder to sell.

My understanding is that off the plan sales are much more difficult for the agent than established property, also it is my understanding that often an agent would not be paid until settlement of the property i.e. 12 months from the time of sale as opposed to 30days on existing property. These two factors would often suggest a higher commission level or alternate arrangement i.e. 50% at contract and 50% at settlement etc.

Depending on the price of the unit: if it is high agents usually area to 1-2 % of commission. If the unit price is low they might settle for 3-4% or even higher in commission. 

John – my personal experience is that otp sales are harder just because some buyers and agents cannot visualize the project, that is, what it is going to look like. Your designer may be using revit or another program that is going to help you build 3d models etc but it may not give you the correct renders and art work that you would need for a full marketing package.

You will have to budget this in.

Is your market cold – warm – hot? Do you even need an agent. Are you building something similar to another project that is already on the market?

I'd expect that you'd have done your expected sale prices before kicking off the development ie at feasibility stage and only be reviewing them on the basis of actual cost of construction, holding costs and state of the market.

What's the commission range for luxury properties in the range from $3 million and above (marketing included, off the plan sales)?

Thanks Richard!

Do you provide finance on Off-the-plan luxury purchases?

Maybe I can add you as recommend to my clients.