Find The Right Real Estate Agent
Finding the right real estate agent can make up to a 5 per cent difference in the price you will get for your home. And given an agent generally charges between 2 per cent and 4 per cent in commission, every dollar counts. Of course the more your house sells for the greater the commission, but a higher price will still deliver more.
Say your house sold for $300,000 through one agent and you paid 2 per cent commission. After the deal you would end up with $294,000 in your pocket. If the agent had managed to squeeze 5 per cent more out of the buyer ($315,000) then after 2 per cent commission of $7,300 you would have $307,700. "I do believe that a good estate agent can deliver up to 5 per cent more than an average one because they have better negotiating skills and experience so won't give away your property at any price,"
Remember the old saying “You get what you pay for”.
The question is how do you know whether you have a good real estate agent or not?
And one of the worst ways is by choosing the agent telling you your property is worth the highest price. Before you choose an agent, I suggest you get an independent valuation of your property. The Australian Valuers Institute can recommend a valuer. "An independent valuer has no vested interest," Once you know the true valuation of your home then you can approach agents in your area. When they give you a price, ask them how they have reached that figure. They should give you a comparative market analysis showing you the sales of several similar properties in your area. You might be given a single figure or a range for the expected selling price. By law a range cannot have more than a 10 per cent spread so they might say it is in the range of $285,000 to $315,000 where the $30,000 difference is 10 per cent. An independent valuation should mean you can recognise when an agent tries to win your listing by over quoting. If an Agent is going to lie to you about the price what else is He or She going to lie to you about.
Ways to sell your property
Remember the old saying “You get what you pay for”.
The question is how do you know whether you have a good real estate agent or not?
And one of the worst ways is by choosing the agent telling you your property is worth the highest price. Before you choose an agent, I suggest you get an independent valuation of your property. The Australian Valuers Institute can recommend a valuer. "An independent valuer has no vested interest," Once you know the true valuation of your home then you can approach agents in your area. When they give you a price, ask them how they have reached that figure. They should give you a comparative market analysis showing you the sales of several similar properties in your area. You might be given a single figure or a range for the expected selling price. By law a range cannot have more than a 10 per cent spread so they might say it is in the range of $285,000 to $315,000 where the $30,000 difference is 10 per cent. An independent valuation should mean you can recognise when an agent tries to win your listing by over quoting. If an Agent is going to lie to you about the price what else is He or She going to lie to you about.
Ways to sell your property
You should also consider how you plan to sell your property. Will it be by private treaty or by auction? This decision will depend partly on the location of your home and the popularity of auctions in your area but it’s also a matter of personal choice.
Those against auctions believe that you don’t get your full price for a property as you start from a low point and work your way up while with private treaty you set the price and then work down.
Selling a property is a major operation. If you do your homework first then you will know what to expect from your agent—unless of course you choose to sell it privately.
Fees
Advertising is luck and Marketing is skill. Costs associated are usually over and above the commission although in some cases you may be able to negotiate no sale, no fee. When you are choosing your agent, you will need to take into account the fees and charges and what they exactly entail. Agency fees are negotiable as are any associated advertising and marketing costs.
Some agencies charge a flat rate while others a percentage of the sale price. Either way the amount must be recorded in the authority-to-sell contract that you will sign before your home is put on the market. GST is payable on the fee.
1 comment:
Standard commission is 5% on the 1st $18,000 & 2.5% on the remainder. An easy way is add $18,000 onto the asking price and Divide by 40
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