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

Discussion in 'The Buying & Selling Process' started by wylie, 20th Feb, 2017.

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  1. Shady

    Shady Well-Known Member

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    How they handle the question and close the deal. How they explain the value they add or give a discount or throw in a sweetener to get the deal over the line.
    e.g. I had pretty much made my mind up last week to appoint a particular managing agent (not sales agent). The BDM called me and asked about moving forward (all good) I mentioned that they were the most expensive of the agents I was considering and would they discount their fee. Within 60 seconds the conversation went down hill very quickly to the point where the phone call ended abruptly.
    The question wasn't handled very well at all they went from pretty much a sure thing ( I would have signed without any discount) to 'see you later'.

    Some people are 'order takers' or 'message re-layers' and some people are sales people.
     
    Last edited: 21st Feb, 2017
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  2. Perthguy

    Perthguy Well-Known Member

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    I asked for a discount in Melbourne and the agent immediately dropped to 1.5% without discussing. Turned out that was a bad sign and he was completely useless
     
  3. dan2101

    dan2101 Well-Known Member

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    I'd never actually considered the fact that people wouldn't negotiate the commission.

    At the end of the day they aren't going to give you the price they are prepared to accept first up. Same with PM (from my experiences).

    For the record both properties I've sold in Sydney (one in the west and one on the northern beaches) ive paid 1.6% inclusive of GST. Both did a great job. The one on the northern beaches was perhaps on the cheaper side as he'd just started his own agency but even now I'd expect to pay 1.8ish.
     
  4. Lemmy a fiver

    Lemmy a fiver Well-Known Member

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    Does anyone on here negotiate their own salary/profit down with some 'potential' client who may only use them once?
    I'm not a REA, just a tradey in a small cottage like industry.
    I spend on average nearly a day a week charging my price to fix others mistakes whether immediately or a few years down the track.
    Research, pay for the best accordingly, move on.
     
  5. Nemo30

    Nemo30 Well-Known Member

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    I researched my preferred agent and then negotiated commission. I had two properties to sell and he offered 1.65% without any haggling.
    Previously I had gone with a terrible agent who charged 3%.
     
  6. dan2101

    dan2101 Well-Known Member

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    I'm sure with REA as with tradies the most expensive is not necessarily the best. If you are building a new house I'm sure you'll get more than one quote. Just because someone charges through the roof does not mean they'll do the best job.

    For example my partner has used the PM services of a Gold Coast office whose founder used to frequent Somersoft and is always in the media. They have been absolutely atrocious. Couldn't even perform the basics. She has moved to a new PM at a cheaper rate and they have done an amazing job.
     
  7. Justin23

    Justin23 Active Member

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    I agree with the sliding commission scale.
    1st point would be what they think you could achieve and your happy with that (So any less than that figure -1% or half your commission? )
    This will tell you if there figure is too optimistic or if they are backing themselves.
    Then increased commission for a hire price if you wish.

    I also look at sold properties in the area.
    Who has the most ?
    Who seems to have higher prices ?
    Who acts with integrity ?
     
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