Hi there,
We are looking at selling our PPOR (in Sydney 'burbs 21km from CBD) and met with a REA today who gave us an estimated value range of $720K - $750K and detailed his commission, GST etc. We are looking at selling at auction which is pretty common for the area and market at present.
REA commission is a flat 1.7% plus of course marketing, auctioneer fee etc. When we started doing the sums we worked out that the difference in commission between a sale at $720K versus $750K is only $510 - it made us start to consider whether he will really push that hard to get that higher price for an extra five hundred bucks in his hand, even though it means a lot more in the hand for us.
We were thinking of incentivising him a bit more.. for example if he achieves equal to or over $750K then we will give him an extra $5K commission. We think $750K is achievable with effort, though it's at the upper end of his estimate.
Have any of you done this before or used a similar strategy that you can share?
Thank you
vtt
We are looking at selling our PPOR (in Sydney 'burbs 21km from CBD) and met with a REA today who gave us an estimated value range of $720K - $750K and detailed his commission, GST etc. We are looking at selling at auction which is pretty common for the area and market at present.
REA commission is a flat 1.7% plus of course marketing, auctioneer fee etc. When we started doing the sums we worked out that the difference in commission between a sale at $720K versus $750K is only $510 - it made us start to consider whether he will really push that hard to get that higher price for an extra five hundred bucks in his hand, even though it means a lot more in the hand for us.
We were thinking of incentivising him a bit more.. for example if he achieves equal to or over $750K then we will give him an extra $5K commission. We think $750K is achievable with effort, though it's at the upper end of his estimate.
Have any of you done this before or used a similar strategy that you can share?
Thank you
vtt