When you select a real estate agency to act for you in the sale of possibly your most valuable asset, don't select them on the basis of the fee they will charge you.
Certainly consider it, but often as you will know, things that are cheap or below market are that way for a good reason, they are probably inferior or of low quality.
In Victoria, agent's commission is negotiable and agencies must tell you that. Accordingly the fee can be at any level that you and the agency agree upon.
So where does that leave you?
Generally there are three ways to remunerate your agent:
- A flat dollar fee - Regardless of the sale price, you pay the agency a pre determined dollar fee.
- A flat percentage fee - No matter how high or low the sale price is, the percentage rate payable to the agency remains constant at the pre determined percentage. E.g 2.2% of the sale price
- A cocktail, an incentive program, or a 'kicker'. This is when you pay a flat dollar fee or a flat percentage fee up to a price threshold and then pay a higher percentage rate on the portion of price above the threshold. E.g. 1.8% of the sale price up to $500,000 and then 10% of the sale price in excess of $500,000. Many vendors feel that this motivates the agency to work a little harder to achieve the best price as it incentivises them further.
Whether you prefer one of these three methods or a blend, we can help you achieve your desired result. Let's talk.