on the move said:
I Agree!!!!!
$50 an hour x 60+ hours a week = $3,000 x 52 weeks, = $156,000 a year.
I'd love to get paid that!!!!!!!!!!
Cheers
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Cheap Real Estate Agent
- Thread starter PeterH
- Start date
I Agree!!!!!
$50 an hour x 60+ hours a week = $3,000 x 52 weeks, = $156,000 a year.
I'd love to get paid that!!!!!!!!!!
Cheers
I wouldn't complain about 8k on a 300k property - it is a cost of doing business. We recently sold an IP in Tasmania and standard commission was 8k on 195k property. Management rates are 11% of rent, plus letting fees etc.
If you get the price you want for the property (including the agent fee) then who cares what the agent fee is? If you want 300k and they get 308k and take their cut are you really any worse off?
Don't begrudge the agent from making their living - like all professions some are good, some are bad, but they can take away a lot of hassle for you.
If you get the price you want for the property (including the agent fee) then who cares what the agent fee is? If you want 300k and they get 308k and take their cut are you really any worse off?
Don't begrudge the agent from making their living - like all professions some are good, some are bad, but they can take away a lot of hassle for you.
Peter,
Do you think you can sell your property yourself,
stay away from mistakes on people judgments
if you think that the property is worth on paper
300k,then your asking price will have to be in the 340k
mark to allow you to come down in price,anyone can sell property
if the price is right.its not the right time to sell anything while so many are overestimating the real price..what area is the property and the land use..
good luck
willair..
Do you think you can sell your property yourself,
stay away from mistakes on people judgments
if you think that the property is worth on paper
300k,then your asking price will have to be in the 340k
mark to allow you to come down in price,anyone can sell property
if the price is right.its not the right time to sell anything while so many are overestimating the real price..what area is the property and the land use..
good luck
willair..
Personally I have never understood when the focus is purely on the commission of the agent. On a sale of say $300K the difference of a 1% commission is $3,300 which you would more than get back if the agent got even $10k higher.
I would have thought that the focus would initally be purely on their performance (and certainly not on how much they claim to like your colour scheme or how optimistic their price estimate is). Once you have selected an agent (sales or PM) that is the time to negotiate the fees WITH THE AGENT OF YOUR CHOICE.
When selecting an agent I like to watch them in action. If I wish to auction I go to the local auctions and see which agents perform best and in some cases which auctioneer within that agency. I go to open homes and see how well they build rapport etc.
Once an agent is selected then it becomes a team effort because although the agent is working for you it is your responsibility to ensure the place is properly presented, is easy to access, that all the selling features have been highlighted to the agent and the advertising is sufficient to bring in the buyers.
If you elect to use an agent they should be part of your team not the enemy!
I would have thought that the focus would initally be purely on their performance (and certainly not on how much they claim to like your colour scheme or how optimistic their price estimate is). Once you have selected an agent (sales or PM) that is the time to negotiate the fees WITH THE AGENT OF YOUR CHOICE.
When selecting an agent I like to watch them in action. If I wish to auction I go to the local auctions and see which agents perform best and in some cases which auctioneer within that agency. I go to open homes and see how well they build rapport etc.
Once an agent is selected then it becomes a team effort because although the agent is working for you it is your responsibility to ensure the place is properly presented, is easy to access, that all the selling features have been highlighted to the agent and the advertising is sufficient to bring in the buyers.
If you elect to use an agent they should be part of your team not the enemy!
Fact =P - 50% of people who work in real estate sales are egotistical, clueless ******s
Now all you agents on here have to do is consider yourself in the other 50% =)
Maybe if each side (sellers included) were understanding about each others needs we wouldnt have pig headed debates about agents on here...
Now all you agents on here have to do is consider yourself in the other 50% =)
Maybe if each side (sellers included) were understanding about each others needs we wouldnt have pig headed debates about agents on here...
Profit is a profit.
If an agent didnt want to drop his commish to for a "sellable" property that was priced fairly ..then more fool them (you need to have the product to sell in the first place and control market share).
Turnover and cashflow keep business's going. The argument that an agent that drops his commish will go out of business is bs.
Im with most of the others in saying that if its the same amount of WORK that goes into selling a property at $X or $Y then why should the vendor pay more.The market will determine the fee in the end ;-)
Imagine if there was no cap limit what agents would try and charge for their Professional service.
The "extra" service has to be measurable to warrant charging more over another agents cheaper fee.
If an agent didnt want to drop his commish to for a "sellable" property that was priced fairly ..then more fool them (you need to have the product to sell in the first place and control market share).
Turnover and cashflow keep business's going. The argument that an agent that drops his commish will go out of business is bs.
Im with most of the others in saying that if its the same amount of WORK that goes into selling a property at $X or $Y then why should the vendor pay more.The market will determine the fee in the end ;-)
Imagine if there was no cap limit what agents would try and charge for their Professional service.
The "extra" service has to be measurable to warrant charging more over another agents cheaper fee.
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likewow said:Not a very constructive contribution for your 89th post James
Just because on the move has a different opinion to you, theres no need to get personal. Remember, other forum members might agree with him.
My apologies if that sounded like a personal attack, that's not how I intended it. I'm quite happy for people to disagree with me, but I think it makes a more interesting and thought-provoking read if people are constructive and back up what they are saying.
To reword my post in question nicely, I would suggest to On_The_Move that (s)he uses some sort of evidence and thought, and makes more constructive posts, rather than the sort of thing posted then.
Something that I should probably learn to do a little more often as well!!
James
"Imagine if there was no cap limit what agents would try and charge for their Professional service"
actually in WA it is a deregulated market, yet typical rates are around 2%. Of that the agent probably gets to keep between a quarter and half. So on a median property, assuming they manage to get the listing, then manage to sell it, then manage to settle it, they'll take home between $1250 and $2500. from that must be deducted 9% super, so that becomes $1146 and $2293. Then there is the cost of the motor vehicle, phone calls, being on beckon call 7 days a week, then the tax man takes his slice of the action.
Now I am not suggesting agents should have a charity fund set up for them. By all means feel free to screw the commission down... it s afree market. To me it comes as no surprise though that the industy is cut throat, ruthless and full incompetence when there are so many people fighting for limited commission dollars. And yet the myth perpetuates that as a profession it is a gravy train.
actually in WA it is a deregulated market, yet typical rates are around 2%. Of that the agent probably gets to keep between a quarter and half. So on a median property, assuming they manage to get the listing, then manage to sell it, then manage to settle it, they'll take home between $1250 and $2500. from that must be deducted 9% super, so that becomes $1146 and $2293. Then there is the cost of the motor vehicle, phone calls, being on beckon call 7 days a week, then the tax man takes his slice of the action.
Now I am not suggesting agents should have a charity fund set up for them. By all means feel free to screw the commission down... it s afree market. To me it comes as no surprise though that the industy is cut throat, ruthless and full incompetence when there are so many people fighting for limited commission dollars. And yet the myth perpetuates that as a profession it is a gravy train.
oh actually I should add the final scenario in that.... when the agent has made his fistful of dollars and spends it, he can't really be confident he has ever made that money as sure as eggs a property deal will eventually go wrong somewhere along the line and its sure to be the agents fault - after all he got all that easy money for doing nothing and can afford it right?
$1146 and $2293.....Im getting all teary now at how hard the game is
Then there is the cost of the motor vehicle, phone calls, being on beckon call 7 days a week, then the tax man takes his slice of the action.
Whats different to any other business??
Now if it was retail where you had to actually buy stock, put it on the shelf and add mark up only to get squeezed/hagled down then i would understand.
You hinted yourself that the problem is within the industry not the vendor (or lol the taxman).
Analogy of the problem>>> Its like being down the beach at lunch time with lots of seagulls, lots of hot chips gettin thrown at them. Now there isnt so many hot chips, so there are lots of unhappy seagulls
Then there is the cost of the motor vehicle, phone calls, being on beckon call 7 days a week, then the tax man takes his slice of the action.
Whats different to any other business??
Now if it was retail where you had to actually buy stock, put it on the shelf and add mark up only to get squeezed/hagled down then i would understand.
You hinted yourself that the problem is within the industry not the vendor (or lol the taxman).
Analogy of the problem>>> Its like being down the beach at lunch time with lots of seagulls, lots of hot chips gettin thrown at them. Now there isnt so many hot chips, so there are lots of unhappy seagulls
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Peter,
It sounds very expensive to me. I have been quoted 2.25% to sell my $275k IP and with a little bit of a push, he has gone down to 2%
Cheers,
GG
It sounds very expensive to me. I have been quoted 2.25% to sell my $275k IP and with a little bit of a push, he has gone down to 2%
Cheers,
GG
End of the day, the cheapest real estate agent is the one who leaves the most money in your pocket after all is said and done.
I would like to add that a good agent will not only get the "best price possible" for the sale but will manage and reduce the emotional & stress "costs" that are involved with selling a property.
Whilst yes I am an agent - I find this penny pinching discussion about how cheap an agent can or will work for slightly sickening. If you want a mercedes - pay for a mercedes, if you want an a to b car - pay for a rust bucket. Just do not confuse the two.
My 2 cents
Paulie
I would like to add that a good agent will not only get the "best price possible" for the sale but will manage and reduce the emotional & stress "costs" that are involved with selling a property.
Whilst yes I am an agent - I find this penny pinching discussion about how cheap an agent can or will work for slightly sickening. If you want a mercedes - pay for a mercedes, if you want an a to b car - pay for a rust bucket. Just do not confuse the two.
My 2 cents
Paulie
My whole point in a previous post was that why does everyone seem to think that paying an agent a high fee will result in excellent service and the highest possible sale price. Sorry guys, unfortunately the reality is it just doesnt happen that way. Two important points to remember:
Agents arent valuers they are salespeople, which is fine but they arent valuers.
The market sets the selling price not the agent.
So a sensibly priced property will sell much quicker with a dud agent on a low comm then a ridiculously high priced property with the best agent in Australia on a high comm.
Reality is what puts dollars in your pocket, not perception.
Agents arent valuers they are salespeople, which is fine but they arent valuers.
The market sets the selling price not the agent.
So a sensibly priced property will sell much quicker with a dud agent on a low comm then a ridiculously high priced property with the best agent in Australia on a high comm.
Reality is what puts dollars in your pocket, not perception.
Likewow,
I think you've misunderstood pretty much all the posts made on this topic to-date.
No-one is talking about paying lots of money for an agent simply because of a perception that the highest paid agent will be the best.
You always should ensure you select a good agent - but good agents aren't usually the cheapest. If they were they clearly wouldn't be a good agent.
And if you can achieve a very good result yourself - go and do it...but if you don't have the experience & skills to achieve a very good result, don't waste your time - use someone who can!
Cheers,
Aceyducey
I think you've misunderstood pretty much all the posts made on this topic to-date.
No-one is talking about paying lots of money for an agent simply because of a perception that the highest paid agent will be the best.
You always should ensure you select a good agent - but good agents aren't usually the cheapest. If they were they clearly wouldn't be a good agent.
And if you can achieve a very good result yourself - go and do it...but if you don't have the experience & skills to achieve a very good result, don't waste your time - use someone who can!
Cheers,
Aceyducey
our agent ok
my experience with selling thru an agent is limited, however when I sold my renovated cottage just as the market turned my agent had to work pretty damn hard to bring home the bacon. As for taking all the stress out of the negotiating process I'd rather pay a small percentage for this.
P.S - I'm not an agent, neither are any of my friends
Cheers
my experience with selling thru an agent is limited, however when I sold my renovated cottage just as the market turned my agent had to work pretty damn hard to bring home the bacon. As for taking all the stress out of the negotiating process I'd rather pay a small percentage for this.
P.S - I'm not an agent, neither are any of my friends
Cheers
I am not going to enter the debate on this topic, but I definitely agree that good agents are worth every cent, yet 20 cents is too much commish for a crappy one who sits in the office and waits until someone walks in and says "I'd like to buy THAT one". I have just had a property "exclusively listed" with a REA for 60 days. During that time, the TOTAL number of times the agent has rang to give me feedback, touch base or simply to inform me of people he has showed through is .............. ZERO. I rang the principal and asked why I had not even heard from them once, his reply was that they didn't want to bother me. Puulleeaase !!!!!!!!!!!!!
JIM
JIM
