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Real estate commissions (Read 8762 times)
skippy.
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Real estate commissions
Oct 21st, 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 21st, 2013 at 9:33pm
 
skippy. wrote on Oct 21st, 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 21st, 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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Re: Real estate commissions
Reply #3 - Oct 21st, 2013 at 10:54pm
 
Lisa Jones wrote on Oct 21st, 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 22nd, 2013 at 8:54am
 
Lisa Jones wrote on Oct 21st, 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 21st, 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 22nd, 2013 at 9:01am by Lisa Jones »  

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skippy.
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Re: Real estate commissions
Reply #5 - Oct 22nd, 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 22nd, 2013 at 12:16pm
 
skippy. wrote on Oct 22nd, 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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Re: Real estate commissions
Reply #7 - Oct 22nd, 2013 at 1:13pm
 
skippy. wrote on Oct 22nd, 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 22nd, 2013 at 6:13pm
 
BigOl64 wrote on Oct 22nd, 2013 at 1:13pm:
skippy. wrote on Oct 22nd, 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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Re: Real estate commissions
Reply #9 - Oct 23rd, 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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Re: Real estate commissions
Reply #10 - Oct 23rd, 2013 at 9:11pm
 
Lisa Jones wrote on Oct 22nd, 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 24th, 2013 at 7:47am
 
Sappho wrote on Oct 23rd, 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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Re: Real estate commissions
Reply #12 - Oct 24th, 2013 at 7:49am
 
skippy. wrote on Oct 24th, 2013 at 7:47am:
Sappho wrote on Oct 23rd, 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
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Re: Real estate commissions
Reply #13 - Oct 24th, 2013 at 2:12pm
 
Sappho wrote on Oct 23rd, 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
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Re: Real estate commissions
Reply #14 - Oct 24th, 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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Re: Real estate commissions
Reply #15 - Oct 24th, 2013 at 2:29pm
 
One small problem with going private on your sale rather than using an agent is some folk won't even look at a property that's not listed with a reputable agent.  Going private is only an advantage to yourself re saving costs. 

Many buyers like the security of knowing the listed property for sale is with a well known real-estate agency...

So by going private you could be cutting your buyer market significantly. 

(I speak from NZ experience - I don't know the Aussie market.)
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Re: Real estate commissions
Reply #16 - Oct 24th, 2013 at 2:39pm
 
Jaqs wrote on Oct 24th, 2013 at 2:29pm:
One small problem with going private on your sale rather than using an agent is some folk won't even look at a property that's not listed with a reputable agent.  Going private is only an advantage to yourself re saving costs. 

Many buyers like the security of knowing the listed property for sale is with a well known real-estate agency...

So by going private you could be cutting your buyer market significantly. 

(I speak from NZ experience - I don't know the Aussie market.)


Well stated. And the same applies here too Jaqs.
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skippy.
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Re: Real estate commissions
Reply #17 - Oct 26th, 2013 at 2:15pm
 
Jaqs wrote on Oct 24th, 2013 at 2:29pm:
One small problem with going private on your sale rather than using an agent is some folk won't even look at a property that's not listed with a reputable agent.  Going private is only an advantage to yourself re saving costs. 

Many buyers like the security of knowing the listed property for sale is with a well known real-estate agency...

So by going private you could be cutting your buyer market significantly. 

(I speak from NZ experience - I don't know the Aussie market.)

Yea I would agree with that. I don't think I would buy or even look at a property privately advertised. My first reaction would be there was something  wrong with the property.
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Re: Real estate commissions
Reply #18 - Dec 27th, 2013 at 9:56am
 
Plus most people don't like to make a deal direct with the seller. Fear I think it is.
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Re: Real estate commissions
Reply #19 - Jan 14th, 2014 at 4:34pm
 
Real Estate Institute in your state sets the fee for members, as well usually, the State Board who control and license the Agents to run an office and the sales reps license too to sell under that office's  RE Agent's License. He/She takes the can if it goes wrong.

A good appraisal should include at least 6 current properties for sale in your area that compare as well as 6 sold with details of starting price and sold prices. And of course the person doing the appraisal should measure the area of the home and age of items like Solar HWS tank for depreciation. States like NSW mostly auctions which cost more - WA and SA private treaty sales. Far better for both imo. Only time an auction is required is if the property has an unquantifiable item like stunning views like no other or a Mansion in reality not McMansion etc.

should also offer advice to get a better price with areas needing updating or repair and how to present the home for viewing.

Today with unemployment far to often those looking for work end up selling and are simply order takers not sales material and then you have the lazy ones who don't do the required product knowledge with is walking through and appraising every new listing on the market in the area you service putting your own price on it and keeping up with it til sold for appraisals.

Outcome over the years of far too high prices placed on homes that disappoint the vendor. But often too he/she will visit homes in their area and make incorrect comparison.Your own is always going to be worth more to your eyes.

How do I know? Retired Licensed Agent.

It does pay to get at least 2 written appraisals as long as presented as above in other words not just an off the cuff walk through price - that's a cowboy quote. Will waste your time and continually ask for price reductions. Unless you know the Agent or his/he representative personally having bought or sold with them  prior or been recommended by close person you trust.
Even then they should be able to quote your area and you will likely know the home as doing your own research - pays to do so. Just take off the blinkers - you are selling after all!  Cool

I still go through homes open for viewing although on the web these days - to see how the selling person acts. If they tell you the people are needing a quick sale etc or why even they are selling - too much info not doing the job employed to do which is to get fair market value for the property as the vendor pays the bill. Not the buyer. This I loath to hear but all too often do.
Means they put in lower offers- same as should when you ask what will they take? Quote back the asking price on the listing but then say why what will you offer then if interested - and then why. That also qualifies the selling agency and selling rep - do I want this person to sell mine.

Unless the buyer employs the Agent to act in buying a property then reversed by you pay the fee!
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Re: Real estate commissions
Reply #20 - Feb 3rd, 2014 at 3:18pm
 
skippy. wrote on Oct 26th, 2013 at 2:15pm:
Jaqs wrote on Oct 24th, 2013 at 2:29pm:
One small problem with going private on your sale rather than using an agent is some folk won't even look at a property that's not listed with a reputable agent.  Going private is only an advantage to yourself re saving costs. 

Many buyers like the security of knowing the listed property for sale is with a well known real-estate agency...

So by going private you could be cutting your buyer market significantly. 

(I speak from NZ experience - I don't know the Aussie market.)

Yea I would agree with that. I don't think I would buy or even look at a property privately advertised. My first reaction would be there was something  wrong with the property.


Agree. And/or exceptionally greedy seller / property so overpriced all agents have said "ya dreamin' " and can't be bothered with an unrealistic or obtuse ignorant seller.
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Re: Real estate commissions
Reply #21 - Feb 3rd, 2014 at 3:20pm
 
bogarde73 wrote on Dec 27th, 2013 at 9:56am:
Plus most people don't like to make a deal direct with the seller. Fear I think it is.


Also very true, few people have the aptitude to craft a deal together, hence agents fill a valid role.
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Re: Real estate commissions
Reply #22 - Feb 3rd, 2014 at 8:04pm
 
Rider wrote on Feb 3rd, 2014 at 3:20pm:
bogarde73 wrote on Dec 27th, 2013 at 9:56am:
Plus most people don't like to make a deal direct with the seller. Fear I think it is.


Also very true, few people have the aptitude to craft a deal together, hence agents fill a valid role.


Exactly.  And a lot of owners have an inflated opinion of their house's value as well.  Agents are a necessary evil.....
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Re: Real estate commissions
Reply #23 - Feb 3rd, 2014 at 11:05pm
 
Frances wrote on Feb 3rd, 2014 at 8:04pm:
Rider wrote on Feb 3rd, 2014 at 3:20pm:
bogarde73 wrote on Dec 27th, 2013 at 9:56am:
Plus most people don't like to make a deal direct with the seller. Fear I think it is.


Also very true, few people have the aptitude to craft a deal together, hence agents fill a valid role.


Exactly.  And a lot of owners have an inflated opinion of their house's value as well.  Agents are a necessary evil.....


Good point.
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Re: Real estate commissions
Reply #24 - Sep 26th, 2014 at 6:31pm
 
You can be sure that the buyer is going to make sure you don't save any money. The best you can expect is to save the buyer some money by you doing all the work for no return.

If I negotiate with a owner seller expect the price to drop because there are no agent fees involved.
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