Capped fee REA's

[mrshandyandy888]

Hi,

Most of you are aware of the new breed of REA's that have capped fees for selling property. My hubby and I will be listing a property that is rented (6 month lease), very very soon. Looking at our options and wondering what you folk think about these agents?
Is it worth saving say $6000 in commission?
What are the pros and cons?

Hope someone can give some insight.

Thanks

 

[BayView]

Personally I think it is a great idea.

The amount of work an agent puts into selling a $2 mill property versus a $400k property is virtually no different.

Of course, with the $2 mill one, there will be less potential buyers and the agent may need to suck up the buyer's a**e a bit more because the $2 mill buyer may think they are a bit important, but basically the same workload.

Assuming the commish is 2.5%, why should they get paid an extra $40k?

 

[ianvestor]

LAAussie, you have hit on an important point... with some buyers in the million-dollar range, a REA with even a semi-decent car just doesn't cut it.

They have to look like they are quite wealthy themselves, which obviously requires more money. (i.e. A new luxury car to drive them around in).

So agents just starting out often have no choice but to sell the $400k houses.



*I just completely made all of that up, it sounded good.

 

[HandyAndy888]

Nice LA, image is everything...

 

[Prakman]

Hi there, what you pay is often what you get. Like any other markets, if an agent charges a higher fee and someone is willing to pay, then there must be a reason. Either the agent is very good and works for you OR there was a turkey that was willing to pay the price. Sometimes its both!

The best thing to do is ask to see their track record, things like sold price vs asking price, avg days on market and see how they stack up against other agents,

Good luck.

 

[MissMuffitt]

We have one here in the Gladstone area that is called "Buzz real Estate"

They have a fixed fee of $4,999 to sell any house. Sounds good to me as it would probably save a good few thousand in commission.