Selling property agents fee
- Thread starter fasteddie
- Start date
NT doesn't have any set by law. It is negotiable and tends to be around 2.5-4% according to http://www.arec.net.au/index.php?c=2
We charge 3.3% including GST. However, we are considered pretty expensive. Most agents are 2.2% and up.
Check your paperwork, maybe it will be cheaper than you think 
http://www.couriermail.com.au/busin...-sale-commission/story-fnefl294-1226504576145
http://www.couriermail.com.au/busin...-sale-commission/story-fnefl294-1226504576145
Sell your property yourself through Investor Mentor. For a small fee you get on Realestate.com.au for set period with photos and all enquiries are sent to you.No commission
Place your property on Gumtree for nothing.
If you are in Victoria go to Lawyerconveyancing.A small set fee including legals. Peter Mericka should be made Australian of the year.
Go Geko in Queensland NSW or SA offers fix prices well under 10K
If you have to use an agent make sure you get a discount on their commissions
In all states commissions are negotiable downwards.
IF they don't give you a discount ask them why not and go to somebody else Most of them will tell you "it is the standard REIQ rate." RUBBISH. It is the maximimum rate.All commissionas are negotiable down.
In places like Qld where there is perhaps twenty agents in every suburb you will be asked to pay too much to enable these franchise agents to stay afloat.The more franchise agents the more you pay
Nobody in Australia should have to pay more than $10000 commission on any residential home sale. It is not rocket science.
.
Place your property on Gumtree for nothing.
If you are in Victoria go to Lawyerconveyancing.A small set fee including legals. Peter Mericka should be made Australian of the year.
Go Geko in Queensland NSW or SA offers fix prices well under 10K
If you have to use an agent make sure you get a discount on their commissions
In all states commissions are negotiable downwards.
IF they don't give you a discount ask them why not and go to somebody else Most of them will tell you "it is the standard REIQ rate." RUBBISH. It is the maximimum rate.All commissionas are negotiable down.
In places like Qld where there is perhaps twenty agents in every suburb you will be asked to pay too much to enable these franchise agents to stay afloat.The more franchise agents the more you pay
Nobody in Australia should have to pay more than $10000 commission on any residential home sale. It is not rocket science.
.
You’re hiring an agent to negotiate the best price for your property. An agent who easily drops their fee might not be the person you want negotiating on your behalf.
The average % comission of real estate agents vary from state to state. The national average is about 2.2%. If you are in WA the average is 2.52% and this is based on Qtr Apr 2012 - June 2012 report.
Drug dealers earn more than $200 per hour. They are not skilled.
You don't get it do you? Clearly agents should discount their commission ONLY to make the property cheaper. The same as car salesman all over Australia dicount their cars. The car dealer gets the same amount of money. Iam sure the property owner would be happy with that. You should try it some time. The owner gets the house sold quicker and gets the same net price The agent gets less . Everybody should be happy.
It ain't rocket science.
The realestate industry is one of the most unskilled protected industries on the planet. I blame Fair Trading for this.
Couple of months training a few thousand dollars and you have a licence to put your face all over the newspaper and tell everybody how skilled you are. No three year uni degree recquired.
You don't get it do you? Clearly agents should discount their commission ONLY to make the property cheaper. The same as car salesman all over Australia dicount their cars. The car dealer gets the same amount of money. Iam sure the property owner would be happy with that. You should try it some time. The owner gets the house sold quicker and gets the same net price The agent gets less . Everybody should be happy.
It ain't rocket science.
The realestate industry is one of the most unskilled protected industries on the planet. I blame Fair Trading for this.
Couple of months training a few thousand dollars and you have a licence to put your face all over the newspaper and tell everybody how skilled you are. No three year uni degree recquired.
What’s with all our posts being deleted? They were not offensive, and after all this is a forum.
Oh Tilt, my friend… Read this quickly before it’s deleted.
I don’t condone drugs/dealing but I would argue it’s a very difficult and risky industry, which is why they make good money.
The real estate industry is hardly protected. I noted in another thread that we get surprise visits from fair trading all the time.
It’s not a 3 month course to become an agent, it is 6 weeks. You may be happy to know I completed an advanced diploma which was 1 year full time (I was going to be a valuer at first).
Now, under the right circumstances, there is nothing wrong with an agent reducing their fee. But if an agent was to reduce their fee easily and without putting up a fight I would define that as poor negotiation. And a poor negotiator is not what you want when selling.
Oh Tilt, my friend… Read this quickly before it’s deleted.
I don’t condone drugs/dealing but I would argue it’s a very difficult and risky industry, which is why they make good money.
The real estate industry is hardly protected. I noted in another thread that we get surprise visits from fair trading all the time.
It’s not a 3 month course to become an agent, it is 6 weeks. You may be happy to know I completed an advanced diploma which was 1 year full time (I was going to be a valuer at first).
Now, under the right circumstances, there is nothing wrong with an agent reducing their fee. But if an agent was to reduce their fee easily and without putting up a fight I would define that as poor negotiation. And a poor negotiator is not what you want when selling.
I have to laugh when people say that selling real estate is an 'unskilled profession'.
Sure - it's not particularly difficult to get a Real Estate Licence, but it's bloody difficult to earn enough money selling real estate to put food on the table, especially true in the last few years of this declining market.
As for the threads on this forum about buyers being 'played' by real estate agents - whilst we act within the law, and whilst most of us (I believe) have a moral compass - we work for the seller. Of course I would try and get you to pay more, I'm not playing on your team, and certainly not trying to convince the seller to take the first low offer you make.
From my point of view as a real estate professional and also as someone who has transacted property personally - an agency that readily discounts their commission (other than for contacts/past clients) seems like they need the business, maybe they're not doing so well, maybe they're not great negotiators, and their 'point of difference' is that you save a few hundred dollars at settlement?
I don't go into surgery and ask for the discount surgeon...
Sure - it's not particularly difficult to get a Real Estate Licence, but it's bloody difficult to earn enough money selling real estate to put food on the table, especially true in the last few years of this declining market.
As for the threads on this forum about buyers being 'played' by real estate agents - whilst we act within the law, and whilst most of us (I believe) have a moral compass - we work for the seller. Of course I would try and get you to pay more, I'm not playing on your team, and certainly not trying to convince the seller to take the first low offer you make.
From my point of view as a real estate professional and also as someone who has transacted property personally - an agency that readily discounts their commission (other than for contacts/past clients) seems like they need the business, maybe they're not doing so well, maybe they're not great negotiators, and their 'point of difference' is that you save a few hundred dollars at settlement?
I don't go into surgery and ask for the discount surgeon...
Couldnt help myself...
Attachments
worst advice ever.
funny that.......... what an interesting concept. that really makes common sense doesnt it.
ta
rolf
Mattysavager
"I don't go into surgery and ask for the discount surgeon.."
A surgeon operates on a set fee which is the honest and honourable way to operate. This is the way realeatate agents should work.
He does not turn around in the operating room and ask you how much your house is worth and charge 2.5% of the value of your home the way agents do . If you don't want to discount Mattysavager why don't you work for a set fee or an hourly rate?
I laugh when i hear of agent who don't want to discount. They are usually the first people to agree on a sale price with the vendor and only a few days later vendor crunch the vendor by telling Mr Vendor that the market has indicated his house is not worth what he is asking and he should reduce his price.
Standard practice.
Being a realestate agent at the moment is tough for one reason and one reason only. There is way to many of them. You simply don't need thousands of realestate agents in every city. Sure you will have the franchise owners telling the agents to keep their commissions high, personalise and localise the service so they can put another franchise around the corner .
Standard practice
"I don't go into surgery and ask for the discount surgeon.."
A surgeon operates on a set fee which is the honest and honourable way to operate. This is the way realeatate agents should work.
He does not turn around in the operating room and ask you how much your house is worth and charge 2.5% of the value of your home the way agents do . If you don't want to discount Mattysavager why don't you work for a set fee or an hourly rate?
I laugh when i hear of agent who don't want to discount. They are usually the first people to agree on a sale price with the vendor and only a few days later vendor crunch the vendor by telling Mr Vendor that the market has indicated his house is not worth what he is asking and he should reduce his price.
Standard practice.
Being a realestate agent at the moment is tough for one reason and one reason only. There is way to many of them. You simply don't need thousands of realestate agents in every city. Sure you will have the franchise owners telling the agents to keep their commissions high, personalise and localise the service so they can put another franchise around the corner .
Standard practice
TILT, are you suggesting we should operate on a cost/time basis just the way many solicitors work? The reason that commissions are CAPPED in QLD (at 5% of the first $18,000 + 2.5% of the balance + GST) is that often, sellers have a wildly unrealistic opinion of the value of their property. If we charged out our time (keeping in mind most deals are done at night), plus the cost of marketing, phone calls (to vendors, buyers, solicitors, building inspectors, tenants, banks, valuers), fuel, professional indemnity insurance, licensing & registration - many vendors would be so much work that they would balk at the price.
If you are unhappy to pay for the services of an agent, or don't believe that they are working in your best interests - feel free to not use one.
I don't like paying for things. I wouldn't be thrilled to pay 2.5% of the value of my properties when it comes time to sell - but I would do it.
Real Estate is something that I practice for a living - and as someone who is clearly biased, nonetheless educated about the system, I guarantee I would use a local agent to sell my property.
I believe 99% of agents will try and achieve the highest sale price for their clients, not just go for the easy commission - as a happy client means return business, which is the way most new listings are achieved.
Go Geko charges a set fee well under $10,000. I think about $7,000 and provides all the services a normal agent does.It doesn't matter whether the property is $100.000 or a million dollars. The fee stays the same . If they can do it so can you and every other agent.Their are other agents that do it for less like Save on Commission
Saw some American figures that suggested agents selling their own home through another agent get on average 3% better price than the average Joe. No doubt the agent in this case would be very happy to use a fellow agent.
The problem is not that the game is tough.The problem is that there are thousands of agents too many. That is why the commission structure is set so high and no discounting takes place amoung large frachises. The vendors subsidize the industry all over Australia. It keeps the industry alive and off unemployment benefits.
Do you work for a franchise Mattysavager.?
Do you think there are to many Agents in Australia?
Mattysavager If there was surgeon on every corner they would be doing it tough too. And they have to work on a set fee.
Saw some American figures that suggested agents selling their own home through another agent get on average 3% better price than the average Joe. No doubt the agent in this case would be very happy to use a fellow agent.
The problem is not that the game is tough.The problem is that there are thousands of agents too many. That is why the commission structure is set so high and no discounting takes place amoung large frachises. The vendors subsidize the industry all over Australia. It keeps the industry alive and off unemployment benefits.
Do you work for a franchise Mattysavager.?
Do you think there are to many Agents in Australia?
Mattysavager If there was surgeon on every corner they would be doing it tough too. And they have to work on a set fee.
I do not work for a franchise. I work for an independent company owned and run by a family. I do not think there is an oversupply of real estate agents.
In property booms, there are more agents. People rush through the gates to get their piece of the pie. When this flattens out, and the easy sales dry up, only good agents remain. Like any commission based industry, if you are not good at your job, you don't make money and you look elsewhere for employment.
I have yet to see the logic in how an oversupply of agents can lead to increased prices....I guess that's just like how Plasma TVs are getting more and more expensive as they become more popular? Or have I got that wrong too??
Go Gecko's business model is demonstrably flawed. Last year the company and the company owned outlets went into administration. Many of the Go Gecko franchises have disappeared since, despite increasing their fixed commission from $5950 to $6950 (which out of interest is the maximum commission payable on a transaction where the sales price is $260,000). Anyone selling for less than $260,000 pays FULL commission.
If it were viable to run a business with reduced commission - more agents would do it. I know our business owner would certainly discount - if it translated to more clients and a better bottom line. Our point of difference however, is being one of the only agencies in the suburb and surrounds who have lasted more than 12 years, and are not part of a franchise group.
I would also pay a local agent full commission for the sale of my property. I believe that using an agent will achieve a sales price that is, at the minimum, sufficiently higher than any private sale price to offset the increased cost.
In property booms, there are more agents. People rush through the gates to get their piece of the pie. When this flattens out, and the easy sales dry up, only good agents remain. Like any commission based industry, if you are not good at your job, you don't make money and you look elsewhere for employment.
I have yet to see the logic in how an oversupply of agents can lead to increased prices....I guess that's just like how Plasma TVs are getting more and more expensive as they become more popular? Or have I got that wrong too??
Go Gecko's business model is demonstrably flawed. Last year the company and the company owned outlets went into administration. Many of the Go Gecko franchises have disappeared since, despite increasing their fixed commission from $5950 to $6950 (which out of interest is the maximum commission payable on a transaction where the sales price is $260,000). Anyone selling for less than $260,000 pays FULL commission.
If it were viable to run a business with reduced commission - more agents would do it. I know our business owner would certainly discount - if it translated to more clients and a better bottom line. Our point of difference however, is being one of the only agencies in the suburb and surrounds who have lasted more than 12 years, and are not part of a franchise group.
I would also pay a local agent full commission for the sale of my property. I believe that using an agent will achieve a sales price that is, at the minimum, sufficiently higher than any private sale price to offset the increased cost.
If realestate were as 'unskilled' as suggested, then it would be a really easy job and there'd be a lot more very successful realestate agents out there.
Whilst it's a profession that does not have a particularly high barrier to entry, it's also one that has a very high turnover of staff and a very high failure rate. It is a very compeiditive environment to work in. This would inidicate that the unskilled do not survive very long and those who succeed are in fact highly skilled.
The lack of a higher education does not equate to unskilled by any stretch.
In my own profession, there are still brokers who will negotiate away their commissions. IMO those who negotiate their income downwards tend to be more unskilled than those who don't.
Whilst it's a profession that does not have a particularly high barrier to entry, it's also one that has a very high turnover of staff and a very high failure rate. It is a very compeiditive environment to work in. This would inidicate that the unskilled do not survive very long and those who succeed are in fact highly skilled.
The lack of a higher education does not equate to unskilled by any stretch.
In my own profession, there are still brokers who will negotiate away their commissions. IMO those who negotiate their income downwards tend to be more unskilled than those who don't.
