Melbourne marketing costs - unit for sale

Hi, i've just received a marketing plan to sell a unit in Melbourne.
The agent currently managing the property quoted commission of 2.2% inc GST which is pretty standard. He also quoted $2,200 exc GST for marketing costs.. sounded like a GST inclusive price so i checked and his reply was it's $2,420 inc GST.

So i ask for an itemised list of marketing costs which he's supplied below.. $2,826.84 inc GST with the comment that "it's a little more than initially estimated, however I believe it is adequate to achieve the result we are looking for".

I've said i don't want to auction and prefer to sell private treaty so let's do a 4 week campaign, list it at $595k and see what offers we get. The unit's been valued between $540k-$625k but i think it should sell for ~$550k based on an identical unit in the same block selling 2 weeks ago for $665k which was fully reno'd (mine isn't). If i sell for $550k, total selling costs come to $14,930 or 2.71%.

Another agent using Jenman's system said they charge 2.5% inc GST with no marketing costs payable which is $13,750 based on a sale price of $550k. That's an extra $1,180 in my pocket but i don't want to get the other agent offside as they're managing other places for me and could possibly make life difficult.

Not really sure where i'm going with this now i've tapped it out.. should i choose the Jenman agent and save some money on fees or stick with my current agent who's managing it?

Do people think his marketing costs are fair or should i try and cut costs by removing some items? Has anyone recently sold in Melb and were your marketing fees about the same?
Sorry for long post, any feedback would be great thanks.

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the costs look about right, but I think there are some additional questions for you to consider.

1. who and where are the target buyers?
2. Why would they find your property under the Jenman approach, given the stock numbers? would your buyers bother to play in a blind auction?
3. who is the stronger negotiator for you? Who will convince your prospects of the value?
 
These are about standard costs...usually , its about +/-5-10% either way on marketing costs to what you have listed.

The real clincher isnt the marketing cost breakdown [ so what even if its 5-10% more] ; rather ask , as a prev reviewer said, who is the target market, and what specifically is the agent doing to target that market. A lot comes down to the sales skills of the agent as well, and this is tough at times to guage before deciding. Id ask specific questions to the agent, and also look for the quality of answers as well as how the agent delivers them. It may sound wierd, but you kinda need a snake oil salesman - not the dodgy aspects, but the smoothness, ruthless sales ability, and determination to win at all costs. [yep, this may get some ire from forum readers, but i think you know what i mean:))
 
The costs seem about right. Included in there would be professional photographer, floorplan & brochures I guess. i would say now is not the time to skimp on marketing unless perhaps there's not a lot of stock in your suburb and equivalent properties are selling easily. This would be rare at the moment.
My comment would be not to go with the managing agent just because it seems easier. You need to go to some OFIs in your area and speak to other agents & see who the best salesperson is. Also interview some & ask who is buying & what they want. If the market wants renovated, for instance, I would be spending some $ to increase your sale price. It looks like you should be able to get $100k if it was reno'd based on the other one.
 
i wouldn't pay for any marketing costs except listings on the big real estate sites. if the agent wants to advertise their services let them pay.

who bought a property after seeing it in print in the last few years?
 
i wouldn't pay for any marketing costs except listings on the big real estate sites. if the agent wants to advertise their services let them pay.

who bought a property after seeing it in print in the last few years?

I agree. If people are serious about buying, they drive the streets they are keen on, look at the real estate web sites and contact agents.

Really besides tyre kickers like me, who really looks at the glossy newspaper ads. When i am serious about buying, I drive the streets, look at whats available on the web sites and contact agents.

Why should sellers pay for estate agents advertising expenses?
 
I sold my Central Equity unit in Dudley Street a few months ago and decided to go with Hocking Stuart rather than MICM who already had several in the block. I was a bit dismayed to be asked to pay $1566 for a marketing pack on top of 2.5% commission, but they did deliver a buyer at $400K when I'd resigned myself to significantly less. Ultimately it's what you end up with that matters.
 
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