Paying The Agent

calculating money

What is the right amount to pay for a sale?

When it comes time to select an agent to sell your property, the agents’ fees are likely to be a major factor in the decision-making process.

As a property seller, if you felt that all agents would offer the same level of service and expertise, and all buyers would be prepared to pay the same amount for your property, you would rightly choose the cheapest agent. But the reality is, not all agents will offer the same level of service and expertise, and not all buyers will offer the same price for your home.

Put simply, the cheapest agent is the agent who leaves the most money in your pocket after their fees and expenses have been deducted from the sale price.

An agent who charges 2% or $20,000 on a million dollar property sale is cheaper than the agent who charges 3% or $30,000 on the same sale. The 3% agent is only cheaper if they achieve a price of more than $1,010,000.

Whether you like it or not, when you employ an agent to sell your home, they are negotiating your financial future. The right agent is an asset and the wrong agent is a liability.

Ninety per cent (90%) of all buyers now conduct their property search on the internet. Another 10% will be passive buyers that are on agent’s databases or call agents when they see a signboard on a house they like. Finding buyers is so simple there is now almost no value to it.

If consumers make a mistake when selecting an agent and deciding upon fees it is that they underestimate the importance of negotiation in the sales and marketing process.

It is during negotiations that agents become an asset or a liability to your campaign. Whilst you may have felt good when you found the cheapest agent at the time of listing that good feeling won’t last if your soft cuddly agency is negotiating your financial future with a hard-nosed buyer.

The skill level of the agent will be reflected in the final selling price and terms.

“The softer the market, the tougher your agent needs to be.”

Any agent can look stellar when three buyers want the one property. But what if there are three properties and one buyer?

About The Author
Peter O’Malley

Peter O’Malley

Peter O'Malley has been successfully selling real estate in the Inner West since 2000. Since becoming the principal of Harris Partners, the agency has gone from strength-to-strength, increasing its market share and a significantly larger sales team. Peter's proudest achievement is in being able to offer buyers and sellers a superior selling strategy to the highly dysfunctional and flawed public auction system. Peter is the author of best-selling publications, Real Estate Uncovered and Inside Real Estate.

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