Agent commission to sell a house, and does anyone negotiate it down?

I think everyone tries, no idea how many succeed. At the end of the day I'd rather someone who can achieve the desired result rather than save some money.

 

Hi

This topic came up in a discussion with my neighbour who at this point in time has over 300 properties, I was always accustomed to sales commissions between 2.2% and 3.3%. He tells me if he has to pay over 1.25% commission he simply doesn't use that agent so it seems that some people are negotiating the commission rates lower.

Regards,

alicudi

 

My suggestion is to get the agent to agree to a tiered scale.
I don't see any value in paying them to sell a property on or below what it is worth.
Make them put their money where their mouth is, offer commissions that make it worth their while to actually try harder.

 

Good luck getting any agent to agree to reduce their commission.
I know of quite a few owners who have tried to negotiate, but none have been successful.

Most recent attempt saw the inner sell privately, using one if those cheap sites to get realestate.com.au listing. Sold quite quickly above estimations received from re agents. Owner saved heaps. $1.25+ million sale price.
Marg

 

I've had a friend who has been successful in negotiating an agent to 0% commission if he couldn't hit the "give away" price.

That said, he also offered 30% for every $1 over a certain threshold - stretch target, difficult, but not necessarily impossible.

Everyone wins (except for the lazy agents).

 

Given the "disruption" from the likes of Purple Bricks I would think that the possibility for rate negotiation would be on the improve, especially at the lower end of the scale.

 

With Purple Bricks, where is the incentive for Agents to actually try as opposed to flog?
(though most of the agents are floggers anyway - there are good ones that i believe do make a difference).

 

There is heaps of variation and negotiation. This was in the papers only few weeks ago but depends on the competition.

Recent direct experience southern Sydney 1-1.5 mil... Commission starting prices 1.5 to 2.2... and watch out for GST.

 

The old rules were a MAXIMUM of 5% of the first 20k odd and then 2.5% of the rest in QLD. You could always negotiate the commission down, but not up. I think that led to a standard commission for almost all agents and still exists doday.

 

None.
And an out of area agent too perhaps

 

If you do not sell you do not pay commission.

Basic strategies. I know life gets in the way but holding very long term can work wonders and eliminate a lot of costs.

 

Wylie, I reckon you have the time and knowledge to sell it yourself!

Friend did, around $1.25m at Coorparoo.
Got contract in 9 days, at a price above agent quotes and their own research.
Saved around $40K commission.
Marg

 

We had some initial discussions with two REAs late last year about selling our PPOR.

One REA quoted 2.85%; the other 3.0%.

As we weren't ready to list, we did ask them to "sharpen their pencils".

I like the idea of paying x% if we get a certain amount, with a bigger % for every $ over that amount (that is, an incentive to try hard to get the largest sale price).

 

I will always try for a discount...I'm an agent and get asked all the time. Sometimes i give a discount sometimes i dont but this notion of getting less service when i discount my fee is rubbish. I give 110% regardless of the fee being paid and would expect most agents would. As a business owner let me tell you that % commission does not pay the bills... $$ commission pay the bills.

When I ask for a discount from agents I carefully consider how they handle the question. It's good to see how (or if) they can get a deal over the line.

 

For clarity's sake, what exactly do you look for?