Most agents will charge you a commission as well as other expenses associated with the marketing of your property. These include such things as advertising, boards, internet, flyers – and can range from a thousand, to tens of thousands of dollars. On average agents receive between $3,000 and $8,000 from sellers for advertising a property. Sadly, we often see much of this money wasted on unnecessary and ineffective advertising.
The most expensive advertising campaigns are commonly for properties listed for auction. These costs are payable regardless of whether the marketing campaign is successful or not.
The commission the agent charges is separate to these costs. Commissions charged are negotiable and range from 2.5-3.5%. The inner suburbs charge less while the outer suburbs often charge more than this.
When you add the advertising costs to the commission charged it can often work out very expensive. If you speak to enough agents you will find one who will not charge you for any marketing expenses.
When comparing agents fees, in order to calculate the total cost, remember to add the advertising costs to the commission they charge. It’s within your rights to negotiate the fee but be very careful about selecting the agent with the cheapest fees, they may work out to be the most expensive in the end. Remember the old saying; you get what you pay for – if you pay peanuts, you may get monkeys.
If you can get them down on their own fee easily, you have to wonder how hard it will be for buyers to get them down on your asking price. Would they accept a lower price from the buyer just as easily in order to get the deal done?
Negotiate a fair fee but don’t base your choice on the cheapest, select the most competent agent. Their superior negotiation skills will translate into thousands of dollars more in your pocket.