Cheap Real Estate Agent
- Thread starter PeterH
- Start date
g'day
in this market you can negotiate. i recently negotiated fees from 11k down to 5k. good luck
in this market you can negotiate. i recently negotiated fees from 11k down to 5k. good luck
Hi there
Obviously, I'm somewhat biased, but ask yourself how you'd feel if someone wanted to negotiate your wages down substantially.
You're paying someone to do a job, and like anything else, you should be looking for the agent who can do the BEST job, not the CHEAPEST.
And look at it this way - if they can't negotiate a decent commission for themselves, why would you trust them to negotiate a good price for you...?
Cheers
James.
Obviously, I'm somewhat biased, but ask yourself how you'd feel if someone wanted to negotiate your wages down substantially.
You're paying someone to do a job, and like anything else, you should be looking for the agent who can do the BEST job, not the CHEAPEST.
And look at it this way - if they can't negotiate a decent commission for themselves, why would you trust them to negotiate a good price for you...?
Cheers
James.
Hi PeterH,
the maximum an agent can charge for commission in Qld is 5% of the first $18,000 and 2.5% of the balance thereof*
The maximum an REIQ agent can charge you on a sale price of $300k is $7,950 (plus GST) The agent you spoke to was quoting you the maximum percentage of commission payable by the REIQ. Our office charges the above commission regardless.
You have the right to negotiate, though an agent who so willingly will sacrifice their own pay probably isn't the person i'd want handling my greatest asset...
erin
Standard REIQ commission structure
the maximum an agent can charge for commission in Qld is 5% of the first $18,000 and 2.5% of the balance thereof*
The maximum an REIQ agent can charge you on a sale price of $300k is $7,950 (plus GST) The agent you spoke to was quoting you the maximum percentage of commission payable by the REIQ. Our office charges the above commission regardless.
You have the right to negotiate, though an agent who so willingly will sacrifice their own pay probably isn't the person i'd want handling my greatest asset...
erin
Standard REIQ commission structure
fair enuf
james - if you were selling a product i would ask for a discount. unfortunatley what you are selling is yrself. so if your on commission then thats the game you play. if you are paid mostly on salary then it shouldnt eat too much into your wage.
its also like saying why should i pay an agent 25 pct more for the same house 12 months later just because the price of the house has gone up 25 pct. the work is the same.
i try to get the best agent for the cheapest price. if its too cheap the agent can say no...
i would think realestate agents should understand market forces more than most..good times and bad times.
james - if you were selling a product i would ask for a discount. unfortunatley what you are selling is yrself. so if your on commission then thats the game you play. if you are paid mostly on salary then it shouldnt eat too much into your wage.
its also like saying why should i pay an agent 25 pct more for the same house 12 months later just because the price of the house has gone up 25 pct. the work is the same.
i try to get the best agent for the cheapest price. if its too cheap the agent can say no...
i would think realestate agents should understand market forces more than most..good times and bad times.
Hiya Aussierogue,
Don't get me wrong - always negotiate.
But, the point I was trying to make is that you shouldn't be looking for a sign that says "Cheapest Commissions", cos directly above it is probably a sign reading something along the lines of "Dodgy Bro's Real Estate"...
But I'm curious - if the best agent sticks to their guns and won't move from a commission reflecting their level of service, do you still use them, or go to the next best agent...?
James.
Don't get me wrong - always negotiate.
But, the point I was trying to make is that you shouldn't be looking for a sign that says "Cheapest Commissions", cos directly above it is probably a sign reading something along the lines of "Dodgy Bro's Real Estate"...
But I'm curious - if the best agent sticks to their guns and won't move from a commission reflecting their level of service, do you still use them, or go to the next best agent...?
James.
good question
james - good question. the problem i have is a reckon agents play a 20 pct role in achieving a result for a property. The rest is in the hands of the market. so if your asking me would i pay 6k more for a service that as long as its done competantly, will achieve a fair result - then the answer is no.
james - good question. the problem i have is a reckon agents play a 20 pct role in achieving a result for a property. The rest is in the hands of the market. so if your asking me would i pay 6k more for a service that as long as its done competantly, will achieve a fair result - then the answer is no.
Since when has the highest price paid guarantee the best service in any industry but especially in the RE industry? And conversely when does the lowest price equal the worst service? The line that if 'an agent negotiates your fee how will he go negotiating your house' is an absolute fallacy because isnt an agent capable of negotiating the fee one way and the house sale differently and why does he have to drop the level of service so dramatically if the fee is reduced by a bit?
Wouldnt an agent rather list a sensibly priced property for a lower fee than a ridiculously high priced property for full fee?
If i had a dollar for everytime ive heard the above line from an agent to justify high fees, id have quite a few dollars. (well more than the few i already have
) as i have bought 20 houses and sold 12 over 16 years so have spoken to an agent or 2.
Wouldnt an agent rather list a sensibly priced property for a lower fee than a ridiculously high priced property for full fee?
If i had a dollar for everytime ive heard the above line from an agent to justify high fees, id have quite a few dollars. (well more than the few i already have
) as i have bought 20 houses and sold 12 over 16 years so have spoken to an agent or 2.
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Hi Peter
I'd be thinking about what you're asking for a little more.
The first thing that comes to mind is, if you're asking for a cheap job, you'll probably get a cheap job. After all, as the old cliche goes. 'If you pay peanuts, you get monkeys'. It's no use saving pennys that will cost you pounds.
You need to ask each agent you interview what the services are they provide and what you're getting for you money.
A good agent won't compromise his integrity by buying into the discounting game. A small discount of 10% perhaps, but no more.
It's the same with any profession, if you want a cheap accountant, you'll find one but at the end of the day it usually costs you more.
Just my opinionated (slightly biased?) ramblings.
Cheers
I'd be thinking about what you're asking for a little more.
The first thing that comes to mind is, if you're asking for a cheap job, you'll probably get a cheap job. After all, as the old cliche goes. 'If you pay peanuts, you get monkeys'. It's no use saving pennys that will cost you pounds.
You need to ask each agent you interview what the services are they provide and what you're getting for you money.
A good agent won't compromise his integrity by buying into the discounting game. A small discount of 10% perhaps, but no more.
It's the same with any profession, if you want a cheap accountant, you'll find one but at the end of the day it usually costs you more.
Just my opinionated (slightly biased?) ramblings.
Cheers
I agree with aussie.
I am sick of "if the agent agrees on a low commisison how do you think they will negiotate with a buyer etc......" argument.
I employ an agent to work with me in selling. I set a price determined by the market and recent sales in the area. They are working for me. The market price is the same regardless of whether I sell it or an agent.
All you got to do is look at recent sales and other places currently on the market and if its priced right it will sell.
I am sick of "if the agent agrees on a low commisison how do you think they will negiotate with a buyer etc......" argument.
I employ an agent to work with me in selling. I set a price determined by the market and recent sales in the area. They are working for me. The market price is the same regardless of whether I sell it or an agent.
All you got to do is look at recent sales and other places currently on the market and if its priced right it will sell.
To all
First of all, I should probably make it clear that I'm arguing from my personal viewpoint, beyond the generalisation of an agent.
Let me put it into perspective:
We do charge a slightly higher rate than our competitors, because (IMHO) we provide a better service. At 66% repeat/referral business, we think it's a fair claim. My apologies if I sound like I'm trying to pump our business here - thats not the point at all.
Whilst we are open to some negotiation on our fees, we will not stoop to the ridiculous levels offered by some agents who are simply desperate for business. We will not work for peanuts, when we can focus better on clients who are willing to appreciate us more, so we can achieve better results for them.
In this area - and I admit, perhaps not in others - the agents who are most willing to drop their commission, are the same who are most likely to buy listings, and the same that are most likely to mess you around.
I refer back to my original point - find the best agent in the area, and if you're so inclined, negotiate them to the cheapest price possible.
James.
First of all, I should probably make it clear that I'm arguing from my personal viewpoint, beyond the generalisation of an agent.
Let me put it into perspective:
We do charge a slightly higher rate than our competitors, because (IMHO) we provide a better service. At 66% repeat/referral business, we think it's a fair claim. My apologies if I sound like I'm trying to pump our business here - thats not the point at all.
Whilst we are open to some negotiation on our fees, we will not stoop to the ridiculous levels offered by some agents who are simply desperate for business. We will not work for peanuts, when we can focus better on clients who are willing to appreciate us more, so we can achieve better results for them.
In this area - and I admit, perhaps not in others - the agents who are most willing to drop their commission, are the same who are most likely to buy listings, and the same that are most likely to mess you around.
I refer back to my original point - find the best agent in the area, and if you're so inclined, negotiate them to the cheapest price possible.
James.
working for peanuts
james - i understand where you are coming from but its funny how the goal posts change. when the market was half the level it is now (depending where you are as recently as 12 months ago) you accepted say 5k commission on a house. 12 months or two years later because that 5k is less as a percentage you say its peanuts. yet for the average jo (inflation rate) your costs havent changed. you want 10k for the same job...yet 5k buys the same amount of peanuts as 2 years ago (or nearly anyway)
recently agents have seen there incomes boom, when in most cases the level of service has declined. not a bad business...
james - i understand where you are coming from but its funny how the goal posts change. when the market was half the level it is now (depending where you are as recently as 12 months ago) you accepted say 5k commission on a house. 12 months or two years later because that 5k is less as a percentage you say its peanuts. yet for the average jo (inflation rate) your costs havent changed. you want 10k for the same job...yet 5k buys the same amount of peanuts as 2 years ago (or nearly anyway)
recently agents have seen there incomes boom, when in most cases the level of service has declined. not a bad business...
aussierogue said:
hi aussierogue,
IMHO with the toughening of the market (for both vendors and REA's) there have been a large number of agents and agencies go out of business, the first ones to go in our area were those who cut their commission.
i don't know that the level of service has declined, again IMHO i believe the agents who are flourishing at the moment are the ones who offer honesty and hard work which isn't realted to the commission they charge.
e x
Non sales people and other people that have never worked on some type of reward for effort basis , have a think about this.
Given that it takes a certain amount of work to "sell" a property and your income was a % of the commission earnt would you steer a client to a house with a $5000 commission or the one with the $11000 commission assumeing the two houses were comparable ?
Given that it takes a certain amount of work to "sell" a property and your income was a % of the commission earnt would you steer a client to a house with a $5000 commission or the one with the $11000 commission assumeing the two houses were comparable ?
"good luck" because it is a no win argument. the cheapest agent is yourself, if you don't want to pay then take a chance and it could work out ok. You could list your property at 20% commission with a gun agent but if it's priced wrong the agent will get a big fat commission cheque of zero.
Don't get me start on real estate agent commission. How many people sold their home below market price because all the agent can see or care is the $$$. For an occupation that requires minimum qualification and responsibility they are FAR FAR overpaid. IMHO $50 an hour is the most they should get !!!!! And no some of them get paid more than brain surgeon, for what ?
