With a median house price of $1.15m in Sydney, you could be paying up to $40k for agent's commission (can vary between 1.5-3.5%). On top of this, add-on costs including marketing (up to $10k), house styling (up to $6k), auctioneer (up to $1k) etc.
I'm keen to understand from both sides (1) as a agent what value do you deliver and (2) as a buyer what value do you think the agent provides?
Yes and at the same time, no. It's contextual.
If you're capable of doing it yourself and have the time, then no. I've dealt with selling agents who were useless and were easy to manipulate to the buyers will, and others who were so toxic by nature made buyers walk away in droves.
If the agent is going to guide/get you more than the $40k in value or help you get what you specifically need right now, then yes.
It depends on both the agent and the property you are selling.
No sell yourself.
I have sold Two myself.
It is incredibly easy.
I saved Tens of thousands.
How do you know the agent and all their experience and connections couldn't have made you tens of thousands more than your sales price and their commission combined?
Unfortunately, their experience is sometimes used against the Seller.
It is likelier than not an agent will seek sub-optimal outcomes because of the way things are structured.
https://www.nytimes.com/2005/02/20/business/yourmoney/why-a-…
Freakonomics was published a long time ago, over 15 years ago, and reports on the American realtor industry, are you sure their analysis applies here for Australia today?
@AustriaBargain: Are you sure the fundamentals of the bulk of real estate transactions have changed in the last two decades?
Last I heard agents bought and sold properties for their principals in exchange for a commission.
Seriously though, I'm pretty sure this much hasn't changed. Remuneration is still structured the same way.
Also human nature is pretty much still the same so the behavioural economics component still applies.
(can vary between 1.5-3.5%)
Anyone with an ounce of negotiation power would not be paying 3.5%.
More reasonable costs are;
Commission 1.5-1.7%
Marketing 4-6k
Styling 1-2k
Auctioneer 500
As of 2 years ago when we were getting quotes and sold.
This is close to the rates I paid selling an investment property just end of last year.
All prices ex gst
Commission 1.5%
Styling $1500
Advertisement $2500
No auctioneer sold as "for sale"
Very pleased with the result of the sale
In suburbs where the median price is ~$3m, clearly no one is paying 3.5% commission.
Which suburb do you live in..
My agent has a 1.6 to 2.2% commission
You decide the commission depending on your satisfaction which is interesting
3.5, won't work because there are many other willing to do the same with just $10k a pop
You should consider to stay put instead of upgrade, unless you want a house if you now own unit.
You will save:
Selling fee
Stamp duty
Time on packing and unpack
Removalist fee
The introduction for land tax in NSW and abolishing stamp duty, will cost you more in the long run.
I tried an online seller once. Very cheap up front cost to get my home on the main real estate website.
First offer through the door I rejected. Big mistake.
After a while I switched to an agent with their large commission. In the end I settled for the same price as the first offer, but now I had to pay a large agency commission.
You pointed out one thing.
DYOR on how much your property is worth and how much you are willing to settle for. Agents usually don't get your more money. They probably get you to pay for marketing and property staging to maximize sale price.
With a median house price of $1.15m in Sydney, you could be paying up to $40k for agent's commission (can vary between 1.5-3.5%). On top of this, add-on costs including marketing (up to $10k), house styling (up to $6k), auctioneer (up to $1k) etc.
Auctioneers are probably worth it if you are in a suburb people are literally beating each other up to get into. Otherwise forget it.
House styling. I assume putting furniture in to stage it. It really depends. If it is vacant but if it is knock down and rebuild property then forget that too.
Marketing. Biggest con ever. How much is it to get it onto realestate.com.au. Take some decent photos (don't forget people are still going to come and inspect, I find agents that try to put photoshopped images up are just trying to rip off their clients). Maybe $2k at most
Properties in this country literally sell themselves unless you are in an undesirable suburb, location and uninhabitable property sitting on it.
There is nothing saying it has to be a percentage. It can be a fixed price. It can include incentives for a higher price. It can be certain price if sold within a certain time frame.
The cost structure is negotiable and if not go to the next agent.
I guess agents would tell you their services will get you a higher price. Isn't that all that matters?
As a buyer, I hold them in complete contempt and they do nothing for the buyer but tell porkies to get you to pay more.