Is 2.2% too high for events selling fee

Discussion in 'The Buying & Selling Process' started by Keentolearn77, 5th Aug, 2017.

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  1. Keentolearn77

    Keentolearn77 Well-Known Member

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    hi

    I have an property to sell (melbournes east), my agent has quoted 2% + gst = 2.2%
    Along with mktg advertising plan 3.5k
    Auction fee free

    Does that all sound fair and reasonable or should I being negotiating something different....
     
  2. Agent30yrs.

    Agent30yrs. Well-Known Member

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    Hi @Keentolearn77

    Whats your relationship with them like?
     
  3. pwnitat0r

    pwnitat0r Well-Known Member

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    $3.5k marketing to list it on REA for $100? Tell 'em they're dreaming!

    I do believe it is too high, should be ~1.5% IMO.
     
  4. Scott No Mates

    Scott No Mates Well-Known Member

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    • How's their marketing?
    • What's their track record?
    • What is their estimate of market value compared to other agents?
    • What are others quoting?
    • Are they any good?
     
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  5. Keentolearn77

    Keentolearn77 Well-Known Member

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    Actually pretty good
    Been out for beers together
    And he knows i have more business for him potentially, with a development coming up (off the plan sale)
     
  6. KinG3o0o

    KinG3o0o Well-Known Member

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    $100 ?? what you think this is car sales.com.au ?

    maybe he is getting premier listings spots and top spots etc etc. marketing may also include letterbox drops and signboards etc. if it includes all this 3k-ish sounds normal and 2% is also normal where i am.
     
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  7. Brady

    Brady Well-Known Member

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    Fair and reasonable... more info required.

    Haven't mentioned anything about the quality of the agent except the price they're charging.
     
  8. Keentolearn77

    Keentolearn77 Well-Known Member

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    He's v good.
    Top of the list for rate my agent.
    Just been promoted too
    Includes premier listing, lb drop, colour brochures etc
     
  9. Tom Rivera

    Tom Rivera Property Manager Business Member

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    Premiere listing is ENORMOUSLY expensive (it's OBSCENE what REA charge), without knowing all the details it does sound like you're getting a good deal on marketing.

    A top agent who you can trust is worth his weight in gold. Is 2.2% above average in Melb?
     
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  10. Lacrim

    Lacrim Well-Known Member

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    I do wonder though how much of the claim that agents fetch you a better price can really be substantiated. I reckon the difference between the price I could sell it for as an owner vs a 'top' agent is a lot narrower than most think. In the end of the day, the house/unit sells itself.

    I know I could sell it for more than the average, run of the mill sales agent, that's for sure.
     
  11. Brady

    Brady Well-Known Member

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    @Lacrim I agree to a degree that people will only pay what they believe the houses are worth.

    But good agents will have existing clients on there books, work harder to get more enquires > inspections > offers > best price

    The more interest you have the better the offers will be, always happens.

    Auction with heaps of people, a lot of registered bidders, emotions increase along with what people will pay

    Same thing happens when there are opens with multiple interest parties walking through, compared with empty house just you and the agent.
     
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  12. Keentolearn77

    Keentolearn77 Well-Known Member

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    Is it common to have no auction fees....
     
  13. Tom Rivera

    Tom Rivera Property Manager Business Member

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    @Keentolearn77 not as far as I know, though I guess if you went with an in-house auctioneer and a cheap marketing campaign...

    If I was auctioning a property I'd be wanting to pay for comprehensive marketing- you've only got four to six weeks to get every possible interested party in Australia looking at your property.
     
  14. TMNT

    TMNT Well-Known Member

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    just curious how much does it actually cost the agent to put an ad up on RE.com, the basic one

    im currently discussing selling with an agent and their marketing fees and excues are laughable,

    apparently paying the premium package of $3k for RE.com is great while the basic listing is usless because it starts on page 5. especially to intersate investors

    he did nt like it when I told him, that as an interstate investor, I ignore the the first ads that come up, and merely enter the price range and sort by cheapest
     
  15. MTR

    MTR Well-Known Member

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    All this+1
    But if it is a booming market, think its possibly Melb, re agents screaming for stock, perfect time to negotiate a price in your favour
     
  16. Big Will

    Big Will Well-Known Member

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    I would say it is pretty standard but depends on what the property is.

    If it is land generally the % is higher as it takes longer to offload/sell, if it is a 5M house I would think you should be able to get a cheaper % too or if it is a 200k unit I would of expected a higher %.

    All in all looks like a pretty vanilla offer and depends on what is included in the advertising package according to the law they cannot profit from marketing but it is hard to get an itemised amount as REA & domain charge a monthly/yearly fee to be able to list on their sites and then charge more for premium listings.
     
  17. vbplease

    vbplease Well-Known Member

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    I find it quite interesting how people have been conditioned to value online advertising for real estate so much more than cars for example..

    The cost of advertising in Qld is a total rort.. the only reason re.com get away with it is because they have the monopoly, so they have sellers at ransom.

    I was recently quoted (through an agent) $1730 for re.com and $320 for domain, both for premier listing. Work that one out..
     
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  18. Tom Rivera

    Tom Rivera Property Manager Business Member

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    That's cheap for a premiere listing! They want $3,349.33 to upgrade from a feature to a premiere on my $200,000 property!
     

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  19. teetotal

    teetotal Well-Known Member

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    Isn't it that different agents have different package costs for premium listings ? (based on number of premier listings they do i guess).

    I've been once quoted $1,100 and $2,700 by two different agents.
     
  20. Tom Rivera

    Tom Rivera Property Manager Business Member

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    Different agents are on different packages, then some big franchises have their own agreements AND every suburb is a different cost.
     
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