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Real Estate commissions?

bjw550 2 July 2012 22

Can anyone tell me what seems to be a fair comission to pay a real estate agent in Canberra?

Both upfront costs as well as final commission?


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AG Canberra 1:58 pm 03 Jul 12

As I said in my post last year – having never done it before it was much easier than I thought. But you do need to know the market and you do need to be confident. The last thing you want is to save money by doing it yourself and then lose money by underselling the property.

And in June 2011 AllHomes charged $995 to list privately.

Jazz 11:54 am 03 Jul 12

zorro29 said :

@ Jazz – an agent DID attempt to sell my house and the best offer they got was 25k below what i achieved…they had 6 weeks and i did it in 1 week

hence my comment is accurate and has a comparison

my god people are narky and annoying around here especially when they dont know anything about it

Congratulations on your result.

Holden Caulfield 10:29 am 03 Jul 12

Jazz said :

Holden Caulfield said :

All good points, but disclaimer required?

Nothing to declare, Wifey isn’t in real estate any more.

Cheers.

zorro29 9:47 am 03 Jul 12

@ Jazz – an agent DID attempt to sell my house and the best offer they got was 25k below what i achieved…they had 6 weeks and i did it in 1 week

hence my comment is accurate and has a comparison

my god people are narky and annoying around here especially when they dont know anything about it

Jazz 7:46 am 03 Jul 12

Holden Caulfield said :

All good points, but disclaimer required?

Nothing to declare, Wifey isn’t in real estate any more.

bjw550 9:20 pm 02 Jul 12

Is it becoming the case that real estate agents are simply a time saving extension of the vendors? It is possible to do it yourself, but if it doesn’t cost too much, people choose to pay someone else and save themselves the hassle.

thatsnotme 8:58 pm 02 Jul 12

arescarti42 said :

poetix said :

You can pay too much attention to detail and worry about what are small sums in the context. For example, $2000 on a house worth, say, $650,000 is nothing.

I’ve always been of the opinion that context is completely irrelevant. $2000 on a house buys exactly the same amount of stuff as $2000 on anything else.

Unless the $2000 you spent helps to increase your selling price, in which case that $2000 may ultimately buy you $10,000 worth of stuff.

Difficult to quantify, I know, but the point is that context can’t always be dismissed so easily.

LSWCHP 8:56 pm 02 Jul 12

arescarti42 said :

poetix said :

You can pay too much attention to detail and worry about what are small sums in the context. For example, $2000 on a house worth, say, $650,000 is nothing.

I’ve always been of the opinion that context is completely irrelevant. $2000 on a house buys exactly the same amount of stuff as $2000 on anything else.

+1 on that.

arescarti42 7:56 pm 02 Jul 12

poetix said :

You can pay too much attention to detail and worry about what are small sums in the context. For example, $2000 on a house worth, say, $650,000 is nothing.

I’ve always been of the opinion that context is completely irrelevant. $2000 on a house buys exactly the same amount of stuff as $2000 on anything else.

Holden Caulfield 7:06 pm 02 Jul 12

Jazz said :

zorro29 said :

2.2-2.4% plus $2000 for marketing

that said, i sold my house privately for more than the agent ever got and faster…

If an agent didnt sell your house zorro how do you know you got more money and faster? You’ve got nothing to compare to.

There is no question that using a real estate agent will cost you more in real $ than listing and selling your own property. However I would offer the following counterpoints.

1. Not everyone has the time to do so. Selling a property is an involved process which could involve market research, negotiating with trades, solicitors, call backs to everyone who came to your property to determine interest, engaging with buyers from other listings
2. An agent has access to discounted placement fees on Allhomes and other sites (current private listing rates are around $1300 on allhomes)
3. Not everyone feels comfortable selling
4. An agent has access to a buyers database within their agency of several hundred potential buyers – even one of those could compete to raise the price your property gets in a sale
5. They’ve got more experience at it – a good agent will list and sell in excess of 50 properties a year, as an individual you’re averaging 1 every 7 years.
6. For some people the idea of negotiating directly with the owner is intimidating & therefore wont look at all – again reducing your potential buyers and competition
7. Just because the tools are available for your to do so, doesn’t mean you should. You can buy a scalpel at the chemist and buy an anatomy text book but would you conduct minor surgery on yourself?

That said, If you think you can do better with (likely) your biggest asset. Go for it

All good points, but disclaimer required?

poetix 6:36 pm 02 Jul 12

I would never sell my own house, as I am no good at pretending to like people and being polite. Agents generally have those attributes, and no emotional involvement whatsoever, except for their insatiable greed.

You can pay too much attention to detail and worry about what are small sums in the context. For example, $2000 on a house worth, say, $650,000 is nothing.

Comic_and_Gamer_Nerd 6:13 pm 02 Jul 12

Always sell privately.

Jazz 6:05 pm 02 Jul 12

zorro29 said :

2.2-2.4% plus $2000 for marketing

that said, i sold my house privately for more than the agent ever got and faster…

If an agent didnt sell your house zorro how do you know you got more money and faster? You’ve got nothing to compare to.

There is no question that using a real estate agent will cost you more in real $ than listing and selling your own property. However I would offer the following counterpoints.

1. Not everyone has the time to do so. Selling a property is an involved process which could involve market research, negotiating with trades, solicitors, call backs to everyone who came to your property to determine interest, engaging with buyers from other listings
2. An agent has access to discounted placement fees on Allhomes and other sites (current private listing rates are around $1300 on allhomes)
3. Not everyone feels comfortable selling
4. An agent has access to a buyers database within their agency of several hundred potential buyers – even one of those could compete to raise the price your property gets in a sale
5. They’ve got more experience at it – a good agent will list and sell in excess of 50 properties a year, as an individual you’re averaging 1 every 7 years.
6. For some people the idea of negotiating directly with the owner is intimidating & therefore wont look at all – again reducing your potential buyers and competition
7. Just because the tools are available for your to do so, doesn’t mean you should. You can buy a scalpel at the chemist and buy an anatomy text book but would you conduct minor surgery on yourself?

That said, If you think you can do better with (likely) your biggest asset. Go for it

c_c 5:38 pm 02 Jul 12

Some agents use a sliding scale, so be aware of this as the percentage will then depend on the price achieved.

zorro29 5:31 pm 02 Jul 12

bjw550 said :

$2000 for marketing. What does that go towards?

usually covers the photographer, ads in papers/magazines etc, and online ads on allhomes/realestate.com/domain, sign out front and agent garbage…usually adds up to $2k which isnt refundable

i would just list on allhomes, get a solicitor and sell yourself 🙂

ThisIsAName 5:12 pm 02 Jul 12

bjw550 said :

$2000 for marketing. What does that go towards?

From word of mouth – some of the marketing $ goes to a real estate photographer (although I’ve seen allhomes reuse images for a place that was sold ~3 years after the pics were taken).

An agent also needs to put in an allhomes ad. I can’t recall what they pays for this. Some friends sold privately and forked out about $800-900 for their listing (this may be wrong though).

VYBerlinaV8_is_back 4:51 pm 02 Jul 12

bjw550 said :

$2000 for marketing. What does that go towards?

Advertising. Allhomes, signs out the front and ads in the paper cost money.

AG Canberra 4:48 pm 02 Jul 12

Check out this thread – http://the-riotact.com/selling-privately-a-recent-experience/50361

As Zorro said – if at all possible consider selling privately.

Especially with Allhomes having 99.9 percent of the market wrapped up – no-one should be paying to list in a newspaper (so $2000 for marketing is a joke).

bjw550 4:47 pm 02 Jul 12

$2000 for marketing. What does that go towards?

zorro29 3:37 pm 02 Jul 12

2.2-2.4% plus $2000 for marketing

that said, i sold my house privately for more than the agent ever got and faster…

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