Real estate commission fees
| # | Post |
|---|---|
| 1 | hi - we are currently getting some appraisals done on our property for a sale period commencing in Feb 2021 and are getting a range of commission and advertising rates. Can anyone advise what the normal or standard rate is - if there is such a thing. I am a first time seller. angelah1 - 2020-12-15 16:02:00 |
| 2 | It's whatever you agree to. Everything is negotiable. sw20 - 2020-12-15 16:13:00 |
| 3 | sw20 wrote:
Thanks - I am aware of the ability to negotiate, I am just trying to get a feel of the usual range. angelah1 - 2020-12-15 16:23:00 |
| 4 | angelah1 wrote:
After several "quotes" you will have a very good idea of rates in your locale. johnston - 2020-12-15 16:40:00 |
| 5 | The house next door sold for over one million and the fee was 3% plus advertising, according to the seller boby11 - 2020-12-15 16:45:00 |
| 6 | sw20 wrote: nothing is negotiable, lol. gabbysnana - 2020-12-15 18:22:00 |
| 7 | There is not a heck of a lot in difference between agency’s ( as far as commission goes) would say find someone that’s “good at selling” ( can upsell your property - you make a lot more money $ that way, then trying to safe a bit on the commission ????..... argentum47 - 2020-12-15 18:41:00 |
| 8 | have you thought about selling it yourself .. if it doesn't have a significant advantage over other similar properties that would see it being an obvious prospect for auction then it's easy enough to check out what similar properties in your area are selling for .. get a professional photographer to take pics, put a professionally made sign out the front and list on Trademe .. save yourself thousands of $$$$$ .. pf - 2020-12-15 19:18:00 |
| 9 | forgot to add .. supply a LIM .. pf - 2020-12-15 20:29:00 |
| 10 | pf wrote: zak21 - 2020-12-15 20:34:00 |
| 11 | zak21 wrote:
absolutely .. pf - 2020-12-15 21:31:00 |
| 12 | I prefer fixed rate agents such as Tall Poppy but make sure you are picking an experienced agent as they are the ones that will get you the best price. There are always agents that get most of the listings in town - go for one of those. pleco - 2020-12-16 05:27:00 |
| 13 | pleco wrote:
Go for the agent with the most listings so that yours is less important? johnston - 2020-12-16 06:23:00 |
| 14 | Tell the agents that you won’t be paying any commission when the deposit gets paid...Cross that bit off the contract and replace it with the commission will get paid on full settlement. lovelurking - 2020-12-16 09:14:00 |
| 15 | lovelurking wrote:
Hardly anyone does that except you and I. One change though, make it that the agent is only entitled to commission on settlement not necessarily that you will pay it then. johnston - 2020-12-16 09:26:00 |
| 16 | Thanks for that johnston. I’ll remember to include that in future when I tell people. lovelurking - 2020-12-16 09:36:00 |
| 17 | another selling option, don't know how their rates compare to common RE agencies .. https://propertyauctionsnz.online/#HowitWorks pf - 2020-12-16 10:06:00 |
| 18 | pf wrote: . Anyone can sell a house, I probably my granny could sell one too ???? .... the trick is to to just sell it , but to also get top$ for it , and that’s where you make the money when it comes to selling a property ..... after all, if your tooth hurts you may as well pull it out yourself - why go to a dentist that charges you an arm and a leg ? ???? argentum47 - 2020-12-16 14:31:00 |
| 19 | It never ceases to amaze how many people hang around this forum to answer questions without answering them. Angelah1 - When we sold recently in West Auckland area, the major agencies are all were looking about 4% for the first $400,000, and 2% for everything beyond that as rack rate. All the best :) citydude - 2020-12-16 14:51:00 |
| 20 | citydude wrote:
Often there is no single answer. If I were to answer the original question literally I would say between 1% and 4.5% with any number of variations on those amounts. What great aunt Sally was charged in Foxton is of no relevance whatsoever. If as it appears the op is obtaining several appraisals then she will be better placed than all of us to answer her own question. Having established what her local agents want to charge she can proceed from there. Even the private sale advocates have made valid points meaning the op can make a more informed decision. johnston - 2020-12-16 15:50:00 |
| 21 | johnston wrote:
Well I know a few who do that, and the last Agent I used was not surprised when I required that any commission was due and payable on settlement. Pity the lawyer ignored it on our last transaction. tony9 - 2020-12-16 16:01:00 |
| 22 | A much smarter way would be , to insist on a 10% deposit , if the deal flops, the agent gets paid ( after all he did his job) and you as the seller gets the other 5% of the deposit , and you could use some of that money to pay your lawyer with and any other expenses.... that you had . The problem is most agents only take a small deposit just enough to cover the commission argentum47 - 2020-12-16 16:40:00 |
| 23 | argentum47 wrote:
That doesn’t sit with me, if the sale doesn’t go through the agent didn’t sell the house did they? Why should they get any of the deposit? lovelurking - 2020-12-16 16:46:00 |
| 24 | lovelurking wrote: lol not that again - do you remember a thread when I said the agent shouldn’t get paid unless the sale goes through? ‘Apparently’ others saw it differently. I mean it’s like promising someone something, you never get if for them but you insist on them paying anyway! Unbelievable! lakeview3 - 2020-12-16 16:53:00 |
| 25 | wow, we agree with each other on two counts now, this and freeloading campers! ???? lovelurking - 2020-12-16 17:14:00 |
| 26 | argentum47 wrote:
Stupid, stupid idea and misses the point entirely. johnston - 2020-12-16 17:41:00 |
| 27 | tony9 wrote:
Good on you. johnston - 2020-12-16 17:41:00 |
| 28 | johnston wrote: mhmm, if I had a white flag, I would wave it , so can you explain why that is a stupid idea.... taking a full 10% deposit , and if the deal does not settle the deposit gets split between the agenda and vender ..... i am intrigued argentum47 - 2020-12-16 18:29:00 |
| 29 | lovelurking wrote: probably agree on a host of other things too in all reality! ???? lakeview3 - 2020-12-16 18:31:00 |
| 30 | johnston wrote:
That would have been a helpful answer. citydude - 2020-12-16 21:13:00 |
| 31 | If I ever have to sell another house I will be skipping the agent and hiring my own auctioneer. Or have a private tender. lakeview3 - 2020-12-16 21:16:00 |
| 32 | citydude wrote:
Only to an addlepate. johnston - 2020-12-16 21:30:00 |
| 33 | Get all the usual suspects round, Find out from them... the appraised price, the suggested method of sale, how much will it cost to sell and the process. From that you will be able to work out what the going rate in your area is and use it as a negotiation tool when dealing with the person you think will do the best job for you. superdave0_13 - 2020-12-16 21:38:00 |
| 34 | argentum47 wrote:
Take a non refundable deposit by all means and the bigger the better but don’t pay the agent a cent until the sale has completed. The agent doesn’t give a fig about completing the sale when they get their money from the deposit. Hard to believe people would walk away after going unconditional and paying a deposit isn’t it but believe me, it happens... lovelurking - 2020-12-16 23:21:00 |
| 35 | lovelurking wrote: It would be in the interest of the agent to make sure deals settle, just imagine the hassle he would get if it dosen’t ! This actually happens to my Neigbour , got a deal on for 2.7mill on his property, but buyer was unable to settle on the deal ....... so he ended up with a bit of extra pocket money ???? . From my understanding ( regardless if it’s right or wrong) the agent probably would be in titled of getting paid as he Fulfilled his job ( selling the property ) but yes would better if the wording would be changed , that the commission was paid at “ settlement” .... argentum47 - 2020-12-17 01:53:00 |
| 36 | superdave0_13 wrote:
This. Rather than a meaningless range of 1-5%. johnston - 2020-12-17 07:05:00 |
| 37 | Let’s face it, who really wants to hand over what is equivalent to a whole years earnings for some to someone who does 1-2 weeks work tops? lakeview3 - 2020-12-17 07:09:00 |
| 38 | lakeview3 wrote: 1 to 2 hours tops, the $10K an hour profession. gabbysnana - 2020-12-17 11:44:00 |
| 39 | lovelurking wrote: Because there job is to secure a contract, nothing more, they do seem to hang around and get way involved more than they should. gabbysnana - 2020-12-17 11:45:00 |
| 40 | pleco wrote: sellontrademe - 2020-12-17 12:16:00 |
| 41 | johnston wrote: zak21 - 2020-12-17 12:30:00 |
| 42 | zak21 wrote:
An appropriate time to pay is after settlement but 99.99% of people are happy to pay prior and even if settlement does not occur. johnston - 2020-12-17 12:48:00 |
| 43 | sellontrademe wrote:
Clearly she voted Greens. johnston - 2020-12-17 12:49:00 |
| 44 | citydude wrote:
Well said that person funkydunky - 2020-12-18 10:09:00 |
| 45 | citydude wrote:
Thank you for this response. The two appraisals so far have both indicated a rate, then cut it in half within the same proposal which surprised me. angelah1 - 2020-12-18 10:55:00 |
| 46 | angelah1 wrote:
Obviously very good agents to negotiate the best price for your home!! (Joking) oldboyjohn - 2020-12-18 11:14:00 |
| 47 | angelah1 wrote:
That's a common tactic, 'so, we charge this much, but for you, I'll discount this much'. Similar to Briscoes, it gives a feeling of getting a good deal, while actually paying retail. To re-visit earlier comments, I think there are too many people who come here looking for free taster-advice, who get told they should pay for that advice elsewhere but I do need to acknowledge that Johnston does provide a bunch of people good advice on this forum. Cheers. citydude - 2020-12-18 21:03:00 |
| 48 | The member deleted this message. citydude - 2020-12-18 21:07:00 |
| 49 | johnston wrote:
If you know a lot about a specific subject, and believe those that don't know anything about it are idiots, that reflects poorly on you. PS. I did have to google addlepate :) citydude - 2020-12-18 21:09:00 |
| 50 | citydude wrote:
Fair play. johnston - 2020-12-18 21:19:00 |
