What is the best deal currently offered by Real Estate Agents?

[mrsaneperson]

Im selling a property in Manurewa . Looking around for real estate agents ive had Mike Pero offering 2.95% commission which is much more attractive than Barfoots at 3.95%. The house should sell in the mid 500k's .
Barfoots i would have thought have the upper hand in terms of marketing as they are NZ's largest.
Barfoots want to charge an extra $1600 on top of commission for their marketing & advertising expenses theyve listed such as photography & signboard [$163] ,LIM [$265 ..really?],Property Press [3 ads at $352 each full page], Auction doc fee [$115].
Many of the above expenses would seem to me expenditure that should be included already in their commission which will amount to over 18k!

With costing like the above i'm non too happy to sign even though Barfoots have now agreed to swallow the marketing costs should the house sell.

Am i being unrealistic to think there are better deals out there?

[gavinc]

I reckon go with Mike Pero - houses in good locations and condition sell easily at the moment so I don't think the size of Barfoot's matters. They all advertise on TradeMe and all buyers look there so if your property is interesting they will call the agent.
Yes marketing fee's, they all try it on and usually you can get an agreement such as yours - i.e if sold they will pick up the tab - I only managed 50% but the agents are a lot more hungry now.

[Sherryf]

No. In fact you are doing the right thing by analyzing the current market rate. As you have mentioned above, they aren't offering a bad proposal though, but still I can recommend you SellMyPropertyQuicker.co.uk. You can just check if they can give a better deal. Good luck!

[Wayne]

houses in good locations and condition sell easily at the moment

So do it yourself?
What have you got to lose - maybe a few weeks while you market it.

[PTILoveYou]

You can always negotiate so that BT/Raywhite etc use the lower rate (usually Barfoots), which includes all advertising, auction fees, etc into the commission.

[Rosco]

I think ultimately you get what you pay for.

A better agent, in a better agency should be able to get you a better sale price quicker. The photo's etc that they are offering, all help attract more buyers to your properties, which helps you get a better sale quicker.

Yes the commission might be $18k, but they might be getting you $50k more.

I have noticed that the good real estate agents put in much more effort to promote their properties, they use professional photographers to give better pictures, and yes they should charge more!

Ross

[speights boy]

So do it yourself?
What have you got to lose - maybe a few weeks while you market it.

She doesn't seem too keen on letting people know it's for sale Wayne.
This from Aug last year.

Commercially sensitive information not able to disclose privately or here since i have already established quite a few discrete things regarding the intended sale & auction process. Sorry for that but you never know you may just randomly appear unknowingly on the auction day.

I don't think it sold.

[mrsaneperson]

She doesn't seem too keen on letting people know it's for sale Wayne.
This from Aug last year.

I don't think it sold.

Aha that was a different property . Im approaching Barfoots asking now for a ceiling of 15k incl gst ,and marketing. Lets see what their response is.

[elguapo]

Yes the commission might be $18k, but they might be getting you $50k more.

Have you got any evidence that an agent can get you significantly more?

I have noticed that the good real estate agents put in much more effort to promote their properties, they use professional photographers to give better pictures,

Why do you need to pay a real estate agent $18k to arrange a photographer that you have to pay for yourself?

[speights boy]

Aha that was a different property . .

I know it was.
It was your responses to the request for information about the property that was intriguing.

[Wayne]

Re the agents fees - a lot depends on the state of the market.
If it is hot then anyone can sell it - list it yourself.
When the market isn't hot then skill becomes more important.
Someone a long time ago planted a seed in my mind.
They asked who would you work harder for, someone paying you 4% or 2%?
At the lower rate they probably think about your house less - maybe.
(A probably maybe - great english Wayne).

[mrsaneperson]

I know it was.
It was your responses to the request for information about the property that was intriguing.

Nothing intriguing about it at all.Commercial information regarding the other property had already being disclosed in that particular thread and that would have made it an unfair advantage if i'd then revealed its location. Same situation as the property discussed here except at this stage i havent provided much in the way of "commercially sensitive information".
What is it with you speights that you come into any thread by usually attacking the author? You seem to have a singular modus operandi by attacking , derailing or both. Either contibute civilly or just retire for good.

[Perry]

Performance Bonus?

I think ultimately you get what you pay for.

Once, that may have been the case. It no longer seems to be the rule. E.g.

A better agent, in a better agency should be able to get you a better sale price quicker.

You have little sure way of knowing, in advance, if you are getting a better anything.

I'm approaching Barfoots asking now for a ceiling of 15k incl GST and marketing.

What do you think the place is realistically likely to sell for?

Say it is $500k. Stick with the $15k all inclusive, but . . .

Offer a 10% bonus on whatever they achieve, over the $500k.

Or something akin to that.

[mrsaneperson]

Once, that may have been the case. It no longer seems to be the rule. E.g.



You have little sure way of knowing, in advance, if you are getting a better anything.



What do you think the place is realistically likely to sell for?

Say it is $500k. Stick with the $15k all inclusive, but . . .

Offer a 10% bonus on whatever they achieve, over the $500k.

Or something akin to that.

Im hoping perhaps around 520k . I know the market has softened a bit over the last few months . Yes i think thats a good idea regarding the 10% bonus. I wonder if as an agent how flexible they're allowed to be with these things.

[mrsaneperson]

I tried her with the 15k ceiling incl marketing up to 500k then 10% on anything after that. She would not budge from the standard Barfoots commission ,but agreed to wear the $1600 marketing fee expense.In the agreement she is contributing $800 upfront towards the $1600 marketing costs and if the property doesn't sell will be out of pocket . She has sold 8 properties just for the month of December which i think is a lot.Personally i have never felt comfortable approaching a buyer privately & would only do so if i had a high interest in a property.It feels more comfortable knowing the agent acts as a conduit and their experience will help legal things go smoother .

How big is the component of "luck of the draw" remains a mystery.