How to Compare Real Estate Agent Fees
Real estate agents are paid by the commission they make from selling your home, and yet not all agents charge the same amount. It varies from suburb to suburb, state to state, and from house to house.
The fees that a real estate agent charges are often negotiable, and should be part of the criteria when trying to find your perfect real estate agent. So, it pays to do your homework, as negotiating the fees or commission at the start of the selling process could mean a windfall to you once the house sells.
The fees that a real estate agent charges are for their time, when they show your home in open for inspections or private appointments. Usually the fee does not cover costs such as advertising and marketing.
Selling your property at auction requires paying a separate auctioneer’s fee because most real estate agents are not registered auctioneers.
Standard Commission Fee
While most agents charge a commission, there isn’t a hard and fast rule about what they charge. The commission changes from state to state, and from metro to rural or regional areas, however, our research indicates that the rates are from 1.7% through to 4%.
While it may seem attractive to go through the cheapest agent, you have to consider their selling record and their reach in marketing your property.
It is always helpful to ask the estate agent at the start of the process in finding your perfect agent, what their fees are. While it might feel uncomfortable, this is business and this is your money, so don’t be shy when you feel you want to negotiate.
Some agents have sliding scales for their fees and commissions, which can include incentives that inspire the agent to work a little harder on getting you the best price for your property.
Go through any additional fees or advertising costs at the start of the process so you are clear and then get it all down in writing, so both parties are covered.
There are many things to consider and costs to add on when selling a property, including mortgage fees, or conveyancer costs, and the costs of moving home, so include all of these in your budgeting, including the fees for the agent, and know that you have done your homework and feel good about finding your perfect agent, for the perfect price.
If you are short of time however, invest 2 minutes of your time and complete our easy-to-follow questionnaire below and let us find you the best real estate agents in your area.