Australian Politics Forum - Real estate commissions

skippy.

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Real estate commissions
Oct 21^st, 2013 at 7:43pm

I am looking at buying a new house so I had a couple of real estate agents give me estimations on my property.
One of them went to the trouble of doing up a fancy quote in a folder amongst the other bullsh it in the folder was that agents commission fees, 3.5 percent, faaaaaaaark are they for real?
I shouldn't be surprised both my father and brother are/were real estate agents/ property developers and both of them would sell their first born for a sale but 3.5% that's bullshi t. I might just have a go at selling it myself. Maybe it's better in the city, I'm sure even though my old man was a leech he never ripped off people by that much, although my brother probably would.

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John Smith

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Re: Real estate commissions
Reply #1 - Oct 21^st, 2013 at 9:33pm

skippy. wrote on Oct 21^st, 2013 at 7:43pm:

I am looking at buying a new house so I had a couple of real estate agents give me estimations on my property.
One of them went to the trouble of doing up a fancy quote in a folder amongst the other bullsh it in the folder was that agents commission fees, 3.5 percent, faaaaaaaark are they for real?
I shouldn't be surprised both my father and brother are/were real estate agents/ property developers and both of them would sell their first born for a sale but 3.5% that's bullshi t. I might just have a go at selling it myself. Maybe it's better in the city, I'm sure even though my old man was a leech he never ripped off people by that much, although my brother probably would.

if you get a good agent it's worth it ..... he can get you many more thousands than you would if you sell it yourself or get a crap agent.

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Lisa Jones

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Re: Real estate commissions
Reply #2 - Oct 21^st, 2013 at 9:34pm

One has to shop around for the best quote whenever a good or service is required.

I personally believe in researching 6 quotes (not the usually recommended 3).

Info (esp all that fine print stuff) along with all costs and disbursements need to be provided by way of documentation.

I personally would NOT recommend anyone selling real estate without a qualified and licensed real estate agent.

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John Smith

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Re: Real estate commissions
Reply #3 - Oct 21^st, 2013 at 10:54pm

Lisa Jones wrote on Oct 21^st, 2013 at 9:34pm:

One has to shop around for the best quote whenever a good or service is required.

I personally believe in researching 6 quotes (not the usually recommended 3).

Info (esp all that fine print stuff) along with all costs and disbursements need to be provided by way of documentation.

I personally would NOT recommend anyone selling real estate without a qualified and licensed real estate agent.

I went to quote a job once, the guy had 12 quotes spread out on his desk .... I turned around and walked out without saying anything.

What do you need 6 quotes for? You like wasting peoples time.

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Lisa Jones

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Re: Real estate commissions
Reply #4 - Oct 22^nd, 2013 at 8:54am

Lisa Jones wrote on Oct 21^st, 2013 at 9:34pm:

One has to shop around for the best quote whenever a good or service is required.

I personally believe in researching 6 quotes (not the usually recommended 3).

Info (esp all that fine print stuff) along with all costs and disbursements need to be provided by way of documentation.

I personally would NOT recommend anyone selling real estate without a qualified and licensed real estate agent.

John Smith wrote on Oct 21^st, 2013 at 10:54pm:

I went to quote a job once, the guy had 12 quotes spread out on his desk .... I turned around and walked out without saying anything.

What do you need 6 quotes for? You like wasting peoples time.

No, not at all. In fact, it's all about giving ME the opportunity to identify the time wasters who come to me to quote in an uncompetitive manner .. and then cull them out of my selection criteria.

If you can provide me with a competitive quote .. you will get the job. Chances are you will also become my regular contractor for other similarly related job opportunities.

It comes down to networking and building competitive business relationships which in turn provide continuing work opportunities.

As I'm the one PAYING, I have the right to suss out what's going on in terms of information AND price. That is how I operate and it has always worked well for me.

One last thing, IMO, written quotes should never be sitting around in full view of others. They should be filed away.

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« Last Edit: Oct 22^nd, 2013 at 9:01am by Lisa Jones »

If I let myself be bought then I am no longer free.

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skippy. Gold Member Offline Posts: 20882 Gender:	Re: Real estate commissions Reply #5 - Oct 22^nd, 2013 at 11:11am Even though I think six quotes is over the top, Lisa actually makes some sense, amazing. I have has two so far, the one that wants to charge me 3.5 percent commission reckons my place is worth fifty grand less than the other one. That seems like a huge difference.
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Lisa Jones

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Re: Real estate commissions
Reply #6 - Oct 22^nd, 2013 at 12:16pm

skippy. wrote on Oct 22^nd, 2013 at 11:11am:

Even though I think six quotes is over the top, Lisa actually makes some sense, amazing. I have has two so far, the one that wants to charge me 3.5 percent commission reckons my place is worth fifty grand less than the other one. That seems like a huge difference.

Get another 4. It won't hurt you.

LET THEM FIGHT FOR YOUR BUSINESS. YOU ARE PAYING THEM. GET YOUR MONEY'S WORTH.

FAR OUT .. IT'S A HOME WE'RE TALKING ABOUT.

( NB I'm not yelling .. just begging you to listen lol )

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BigOl64

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Re: Real estate commissions
Reply #7 - Oct 22^nd, 2013 at 1:13pm

skippy. wrote on Oct 22^nd, 2013 at 11:11am:

Even though I think six quotes is over the top, Lisa actually makes some sense, amazing. I have has two so far, the one that wants to charge me 3.5 percent commission reckons my place is worth fifty grand less than the other one. That seems like a huge difference.

Or maybe the other one inflated the price by $50K just to get the rights to sell your home. Your home is worth exactly what someone is willing to pay for it, the RE Agent is just giving an (hopefully) educated guess based on previous sales.

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Lisa Jones

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Re: Real estate commissions
Reply #8 - Oct 22^nd, 2013 at 6:13pm

BigOl64 wrote on Oct 22^nd, 2013 at 1:13pm:

skippy. wrote on Oct 22^nd, 2013 at 11:11am:

Even though I think six quotes is over the top, Lisa actually makes some sense, amazing. I have has two so far, the one that wants to charge me 3.5 percent commission reckons my place is worth fifty grand less than the other one. That seems like a huge difference.

Or maybe the other one inflated the price by $50K just to get the rights to sell your home. Your home is worth exactly what someone is willing to pay for it, the RE Agent is just giving an (hopefully) educated guess based on previous sales.

Unfortunately, SOME unscrupulous agents do exist and they will SAY anything to secure a vendor contract.

Cover your bases, shop around and share your experiences with other like minded people. It's a great form of networking and you can amass heaps of tips along the way etc.

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If I let myself be bought then I am no longer free.

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Sappho Gold Member Offline OzPolitic Posts: 1406 Gender:	Re: Real estate commissions Reply #9 - Oct 23^rd, 2013 at 8:50pm I thought 3.5% was pretty average... but Skippy's comments seem to suggest otherwise. Lisa, what is the average commission charge on an average property in an average area?
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greggerypeccary Gold Member Offline Australian Politics Posts: 131477 Gender:	Re: Real estate commissions Reply #10 - Oct 23^rd, 2013 at 9:11pm Lisa Jones wrote on Oct 22^nd, 2013 at 6:13pm: Unfortunately, SOME unscrupulous agents do exist and they will SAY anything to secure a vendor contract. "Some"
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skippy.

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Re: Real estate commissions
Reply #11 - Oct 24^th, 2013 at 7:47am

Sappho wrote on Oct 23^rd, 2013 at 8:50pm:

I thought 3.5% was pretty average... but Skippy's comments seem to suggest otherwise. Lisa, what is the average commission charge on an average property in an average area?

It does seem pretty average around here. I have called a few RE agents now and they all charge 3.5%.
Apparently in the city, Sydney anyway, It's only 2-2.5 but there is obviously much more competition there.
NSW does not have a set rate, apparently QLD does, not sure about other states.

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John Smith

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Re: Real estate commissions
Reply #12 - Oct 24^th, 2013 at 7:49am

skippy. wrote on Oct 24^th, 2013 at 7:47am:

Sappho wrote on Oct 23^rd, 2013 at 8:50pm:

I thought 3.5% was pretty average... but Skippy's comments seem to suggest otherwise. Lisa, what is the average commission charge on an average property in an average area?

It does seem pretty average around here. I have called a few RE agents now and they all charge 3.5%.
Apparently in the city, Sydney anyway, It's only 2-2.5 but there is obviously much more competition there.
NSW does not have a set rate, apparently QLD does, not sure about other states.

Sure, but in Sydney with an average price fast approaching $1 million, they can afford to lower the commission a little. They would still make more money with the lower commission.

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Lisa Jones Gold Member Offline Australian Politics Posts: 39047 Sydney Gender:	Re: Real estate commissions Reply #13 - Oct 24^th, 2013 at 2:12pm Sappho wrote on Oct 23^rd, 2013 at 8:50pm: I thought 3.5% was pretty average... but Skippy's comments seem to suggest otherwise. Lisa, what is the average commission charge on an average property in an average area? You will need to stipulate which state you're selling in .. for starters.
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Lisa Jones Gold Member Offline Australian Politics Posts: 39047 Sydney Gender:	Re: Real estate commissions Reply #14 - Oct 24^th, 2013 at 2:19pm If we're referring to NSW, then I can tell you from personal experience, I've been able to successfully negotiate a 2% commission rate ( on behalf of a relative).
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