You’ve made the decision. You’re selling your house. You’ve found an agent who you want to list the property with. Then, you start to tell friends and family that you’re selling and every single one of them has an opinion on how much commission you should be paying your agent.
So what is a fair commission? There is a lot of rhetoric on that question ‘in this market’. The Agent Finder speaks with Inner West Mum and local real estate agent Louise Mitchell from Agency by Glenn Regan to discuss what is a reasonable commission to pay and how to negotiate a commission you are comfortable with.
Hi Louise thanks for taking the time to speak with us, tell us what you think is a reasonable commission that sellers can expect to pay in the current market?
Louise says: In the Inner West, vendors would typically find commissions are between 1.5% to 2.0% plus GST. Marketing costs are typically in addition to this amount and pays for listing your property on real estate websites, photography of your property, brochure printing, and sign board for the front of the property etc.
So as a seller if you’d like to negotiate with your agent on their commission how would you suggest starting this conversation and when should a seller start that conversation?
Louise says: Raise the subject in the initial meeting when interviewing agents. Ask what their commission fee is? Ask why they charge this fee. Also be sure to ask what their marketing costs are and what this will get you, then when you have finished interviewing all the agents you will be able to compare their costs.
Does the agent keep the entire commission?
Louise says: No the agent doesn’t get the keep the entire commission. Typically, if they work for an agency whether it’s a franchise or boutique then the commission is shared with agency.
Are there agents charging considerably less commission? And what do you perceive to be the potential pitfalls of signing up with an agent charging a low commission?
Louise says: Yes there are agents out there offering quite cheap rates. If they are offering these, I would question why such a discount on the “average”. Are they new to the industry? Are they struggling for stock? If so, why? Vendors should typically look at the experience of the agent and the consistent results they achieve. A local agent that sells the most properties isn’t necessarily the best agent and like most things in life, you get what you pay for! An experienced agent may charge you full fee, but will get you top dollar!
If you’d like to speak with Louise she can be contacted on 0411 567 203 or if you are searching for an agent in your local area you can contact Rebecca on 0413 900 991 or firstname.lastname@example.org