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Negotiating selling agent commission....

Discussion in 'The Buying & Selling Process' started by Keentolearn77, 25th Sep, 2016.

  1. Keentolearn77

    Keentolearn77 Active Member

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    1st Sep, 2016
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    Location:
    Melbourne
    Wondering what most people do when working out a selling agent to go with when selling your property.
    What the ave commission is, and do you, can you actively negotiate with the agent as to a incentive based commission.....

    Ie: if the average commission is 2%.....
    Would it be wise to negotiate 1.5% up to your reserve, and say 3-4% for anything past the reserve to ensure the agent has every incentive to sell your property for as much as possible or is that double edged in that the agent may leave your property on the market too long trying to squeeze out more that it will get.....
    Not going to auction
     
  2. Xenia

    Xenia Adelaide Property Manager Business Member

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    Location:
    4/136 The Parade Norwood, South Australia
    Cheap agents may save you $1000 in the commission and lose you $50,000 in the sale.

    Go for someone who is good at what they do, can negotiate well and is pushing for you best interest and not just another quick sale.

    Look for testimonials, look for evidence that they have achieved top sales prices for an area.

    Not all agents are good agents.

    Once you find someone who has your best interest at heart, don't screw them on price. It's an insult!!!

    A good agent will not just drop their pants, they will walk.

    2.2% is reasonable.
     
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  3. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    In the past I have paid the standard commission up to what I wanted and extra commission if they hit specific amounts.

    It didn't work - I didn't have to pay any bonus commission because they couldn't find a buyer that high. I don't know if it encouraged them more or not.

    The trouble with offering a lower rate commission is that they will steer clients to other properties first or will not be as enthusiastic in selling yours. I think Xenia is right
     
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  4. Leo2413

    Leo2413 Well-Known Member Premium Member

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    You get what you pay for with regards to selling agents. I'd want the best killer negotiators/marketers who have a proven track record with exemplary results in your chosen area selling similar stock.

    Stay away from out of area agents. I have collectivly saved hundreds of thousands of dollars when buying from OOAA.
     
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  5. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    One of my clients just purchased from an out of area agent and he is very happy because of the price he paid
     
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  6. D.T.

    D.T. Adelaide Property Manager Business Member

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    Location:
    Adelaide, SA
    Find the best agent you can and pay him/her what they're worth.
     
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