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more money for same work (or less if the market is hot - they sell themselves).
Not selling myself but my colleagues do and they are always having to "negotiate" their commissions. The more expensive the house the more precious the people you are dealing with. No thanks, big chunks of commission can't persuade me to give up my weekends, work 24/7 and not have a life other than bowing and scraping to vendors and buyers.
The old 20/80 rule still applies. 20% making 80% of the commission.
Agencies... house prices keep rising, do their commissions as a % drop? Or just more money for doing the same amount of work? How do I get on the gravy train?
Commissions never dropped.
Back in 2000 houses averaged about $200k and commissions were 4%
2006 - houses about $350k and commissions were 4%
Now in Ak - houses about $700k and commissions about 4%
Lot more money for the RE agencies.
Wages haven't risen like that.
Commissions never dropped.
Back in 2000 houses averaged about $200k and commissions were 4%
2006 - houses about $350k and commissions were 4%
Now in Ak - houses about $700k and commissions about 4%
Lot more money for the RE agencies.
Wages haven't risen like that.
Not correct Bob, it's not 4% on the whole amount, they vary and each companies commission structure as well. Mike Pero agents get a fair suck of the sav and there are different percentages for the lister and seller. If Harcourts list and they conjunct and a Ray White agent sells then all hell breaks loose as the agents squabble over who gets what. The agencies get about half the commission on average and the other half divvied up between the lister and seller.
Absolutely right Bob, agents and agency commissions double every 10 years obviously. And most agencies have increased comms from 3 to 4% over the last 10 years.
No idea gents, you really should get yourself involved in the industry before making sweeping comments like that. Fact not many real estate agents I know in Auckland own their own homes, many rent as they can't afford either the deposit or the mortgages. Most women are 2nd time round and many of the guys are supporting ex wives and children.
Yes there are the successful ones who are making hay while the sun shines but many of them went through bad times and minimum income from 2008 - 2011/12.
If it was that great a job then why aren't there more people doing it?
Absolutely right Bob, agents and agency commissions double every 10 years obviously. And most agencies have increased comms from 3 to 4% over the last 10 years.
3% to 4% isn't doubling, or wasn't when I went to school 40 years ago.
The nonsense of that statement ^^ makes a response unnecessary but to save your embarrassment if 4% Commission on a 400K house 10 years ago is now a 4% commission on an 800K house today that is known as doubling.
The nonsense of that statement ^^ makes a response unnecessary but to save your embarrassment if 4% Commission on a 400K house 10 years ago is now a 4% commission on an 800K house today that is known as doubling.
I have already said that 4% commission is NOT charged on the whole sale price, you seem to have overlooked that very important fact! Commission structures have changed over the years and they fluctuate with every sale. If you think that agents alone are getting 4% of a sale then no wonder it grits you.
A vendor is well within their rights to negotiate the commission structure when the property is listed, and they do as they are more savvy now than 10 years ago.
Meehole, it might be a good idea if you read Damap's posts carefully, he is correct in what he is saying.
You too are correct and everybody here is very clear on how a REAs commission is applied within an agency.
He is correct in saying that 4% commission is charged on the whole sale price of a property?? I don't think so and you forget that there are new people reading these posts all the time and they are here to learn not be guided by assumptions.
Feel free to offer your own opinion relevant to your own experiences which is what I attempt to do. I don't happen to accept either that every property in Auckland has doubled in value in 10 years. Mine as an example hasn't.
He is correct in saying that 4% commission is charged on the whole sale price of a property?? I don't think so and you forget that there are new people reading these posts all the time and they are here to learn not be guided by assumptions.
Feel free to offer your own opinion relevant to your own experiences which is what I attempt to do. I don't happen to accept either that every property in Auckland has doubled in value in 10 years. Mine as an example hasn't.
If you negotiate the commission the REAS accept to list your property but with no real intention to give it there best shot.
An REA told me that the best trick for a vendor is to negotiate the commission only when the offer is on table.
If you negotiate the commission the REAS accept to list your property but with no real intention to give it there best shot.
An REA told me that the best trick for a vendor is to negotiate the commission only when the offer is on table.
Speaking from experience that is the worst time to negotiate the commission. Reeks of desperation. Asian strategy when buying is first offer is an insult, 2nd offer only slightly better, 3rd and final take it or leave it, by then they have conditioned the vendor. They buy alot but don't sell much, tend to hold. As vendors we can learn from their strategy. Get tough and negotiate.
Speaking from experience that is the worst time to negotiate the commission. Reeks of desperation. Asian strategy when buying is first offer is an insult, 2nd offer only slightly better, 3rd and final take it or leave it, by then they have conditioned the vendor. They buy alot but don't sell much, tend to hold. As vendors we can learn from their strategy. Get tough and negotiate.
as a self employed tradesman i find that Asians tend to do that when your doing work for them except they tend to try to negotiate the price after the job is done, i dont work for them any more, they call im to busy
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