QLD - Brisbane Metro typical selling fee

Hi folks,

First time selling in the Brisbane (or QLD-state, for that matter...) market.

Agent has quoted a great sales/marketing strategy. Very keen to get the listing as this particular suburb is going strong for sales results (despite covid) due to low stock levels on market and buyers gobbling up most new stock that comes on. He has quoted a sensible marketing package cost which I am pleased with. But the selling fee is quoted at 2.5% + GST (2.75% total) for what will likely be a high-300's sale price (or at a stretch low 400s).

This seems a bit high to me, coming from NSW and VIC experience. Thoughts from those who've sold in Brisbane at this selling price point?

I was thinking to counter with what I did in Sydney which was go propose a tiered performance fee model? I.e. 2.2% incl. GST for sale price up to 370k, then 2.5% incl. GST for 370-390k, then 2.75% incl. GST for 390k+ sale price. Is this common in qld? That way agent is more motivated to push for the maximise sale price/buyer?

I've also not seen a sales contract so I don't know if he's seeking 90 day exclusivity (and whether I should make it 88 days like in NSW to avoid the risk of that 4th month of exclusivity being contractually obliged via notice period).

I can seek alternatice quotes of course (and I shall) but before I do I wanted to hear from QLD sellers here first.

Thank you!

 

2.5% plus GST is about the norm. Does the agent have a good track record of achieving top sales prices?

 

Had an appraisal last month - quoted 3.25% inc GST with a 'special' reduction to 2.75% inc GST for no other reason than its their marketing spiel.

 

If the cost to sell (for an agent) is similar, a lower percentage based from a higher sales price (if comparing to Melbourne & Sydney prices) results in the same income to the agency.

Sales agents then have more fee % rate to play with in more expensive markets.

 

I haggle on % as regularly as I use a new agent

I think at least asking the question gives an input as to how the agent negotiates.

Over the last 3 years I've paid as little as 1.5%+GST and as much as 3.0%+GST depending on the area and the product.

For more expensive property I've also used a tiered commission structure based on success. You're talking 3+ mil sales value though. I'm not certain it really had a massive impact on the Agent's effort.

With that in mind, I'm not certain tiering the structure would make a difference to an agent at 300-400k sale. You'd be talking maybe only a couple hundred difference in commission.

 

Thanks everyone for the inputs.

I've made a decision to appoint a particular agent based on a tiered/performance-based fee structure (of which the original quoted fee is the top-end tier).

So, it's not that I've negotiated the fee 'down' in the event of the ideal (and what agent believes to be, most likely..) sell-price achieved. Agent gets the same in that outcome.

Rather, if sale price is lower I have contingency/cheaper fees structures in place in case of that outcome. I consider it an insurance policy for optimising the agents performance and keeping them motivated. Also, at lower sell-prices for this particular property (given a higher lvr I have than most others); I kinda need the slightly lower fee to help mitigate risk of walking away with little, or no, cash gain after selling costs, taxes, and clawing out my original equity (downpayment/deposit).

I won't give any further specifics on this thread but... I will revert in (hopefully!) a couple months time once I have an unconditional sale contract knocked over, with an update!