How much to pay a real estate agent??

[Nicknz]

I need to sell one of my properties in alfriston, south auckland. I have never sold a house before. I have approached an agent who have suggested 3.95% plus GST as their fee. Do you think I should try and negotiate a lower price?? How low should I accept?

[SuperDad]

The standard that I am familiar with is 4% + GST on the first $250K, and 2% + GST thereafter.

Paul.

[revdev]

Nicknz,

Or alternatively, put up the details here in the Caveat Emptor section and see if you get a bite!?!

All the best
G

[JohnL]

Often a lump sum ie $400 plus the 3.95% or so (and don't forget the plus GST).

You may be able to negiotate a reduction.

John

[Stevegoodey]

I've never paid more than 3% + GST, but to a degree you do get what you pay for.

You could also negotiate a fixed price?

Steve

[xris]

Hello Nicknz,

Your thinking on this is basically flawed.

3.50%-4.00% appears to be the going rate in the area, so you can rest easy that you are not going to pay to much. That is about all you need to do on the commission side.

The next thing to do, and I would suggest the most important thing, is to find a good agent, not a bad or even an average one. A good agent will get you top dollar and more.

Once you have found one, let them get on with the job.

Good agents do not quibble about the commission because they do not need to.

If you are one of those people who will always base their decisions on price rather than looking a bit further into such things as quality and service then rest assured you are not alone - just go to your nearest $2 Shop and watch the rubbish people buy. It is an ingrained mindset.

And if you are one of these people then do not under any circumstances agree to 3.95% commission. Get ten agents round and run a Dutch auction and watch the what happens. Or easier still, look for an agent that only charges 1.00% - they are around.

And welcome to the site. If you have been following the threads you will probably be used to my direct style.

xris

[Spider]

You get what you pay for but you can aways negotiate.

I think negotiate the fee but then pay some/all advertising cost so you know your money is going towards sell your property, then you get the best deal and the best result.

[AppleT]

Would you consider selling it privately ? That way you won't even need to think about all the above, plus you'll most likely get closer to what you're after or at least a fairer price. I've used Trademe and it sells quickly !!

Hope this is helpful !!

Debs

[cube]

I've used Trademe and it sells quickly !!

Trademe doesn't sell property - people sell property.

Putting a property on Trademe at 20% above real value won't sell it quickly, and marketing through an agent at 20% below FMV will sell quickly.

TradeMe is only a means to an end.

cube

[AppleT]

All I can say is it worked for me - you obviously need to find something that works for you - this was only a suggestion.

Debs

[casacamo]

How does the sale process work with private sale through trademe. I have sold a car before , but not a house.
We are thinking of selling off a property soon. Does the purchaser have to use the 'official' S+P agreement or is it done through the solicitors.
Can the blank forms be downloaded from a website ?

We are thinking of trying 'Trademe' to start with and then go for 'Greendoor' if we have no luck, if it still isn't sold by February then we will go the usual route thru' an agent.

Casa

[Heg]

How does the sale process work with private sale through trademe. I have sold a car before , but not a house.
We are thinking of selling off a property soon. Does the purchaser have to use the 'official' S+P agreement or is it done through the solicitors.
Can the blank forms be downloaded from a website ?

We are thinking of trying 'Trademe' to start with and then go for 'Greendoor' if we have no luck, if it still isn't sold by February then we will go the usual route thru' an agent.

Casa

Never listed a house on TM so can't advise.
If you sell privately then you or your lawyer can handle the S and P agreement.
Normally, the vendor would do the initial negotiations and when the deal is drawn up THEN your lawyer gets a copy and checks title etc etc.

Agents commission is usually around 4% up to $300,000 and 2% thereafter PLUS GST and plus marketing. If you DO list, my advice is to give an agent a sole agency. General listings tend to get put on the back burner as agents prefer to work listings where there is at least some chance of geting paid!
They will also be more inclined to maybe give you some free advertising. Also unless you live or work quite close to the property, then consider how excited you are going to be having to show buyers through every 5 minutes. Sometimes this is where it is easier to have an agent to handle things. (You could always ask them to include a clause with the right to sell privately on their listing form)

Just remember, however you choose to sell only two things matter - PRICE and MARKETING. Better to advertise at a keen price and be beating buyers off with a stick, than to be greedy and not sell.
Time on the market does a property NO favours. People will start to ask what is wrong with it.
Hope this helps. Bit of a rambling reply!

[Jumpin]

Regarding private sale or agent, In the current market, an average house in an average suburb will still pretty much sell itself, so a slight discount on trademe will be less of a hit than RE agents fees.
Houses in higher bracket may be best done via a good agent. We sold our family home recently through an agent. We negotiated a lower fee at the end of the process - ie when the buyer didnt move as much as we wanted, the agent reduced the fee so as not to lose the sale. Best you're not a motivated vendor to do this.
At the end of the day though, people are motivated by money, agents included, so if you neg a low fee at the outset, they may prefer to spend their time selling properties with higher fees.

[casacamo]

If you sell privately then you or your lawyer can handle the S and P agreement.

Where can I get a blank S+P agreement ?

[NZGEMS]

Hi Nick
I notice you are in London so if that is the case I would advise asking for the top agent and list with them, pay their commision as they will probably put your house on the market at the right price and sell it quickly getting the best price for you.

I dont ask an agent to negotiate their fees unless they offer as I feel they work hard for their money, but perhaps I am a bit different as I do alot of buying and selling and I know I make heaps more than even the top agents in the country so I dont begrudge them their fees. Good luck.

You can sell on trade me and privately i have done a number this way, the contract comes direct from the purchaser or their lawyer.

and to answer Casacamos question, either your lawyer or I understand whitcoulls may sell some not the same as the RE industry but neverthe less still a contract.