Real estate agent commission advice

Hi all

Hoping to get some advice on what to expect to pay for commission and how to set up a dual listing.
-If a property is valued at $5m, I'm assuming you could negotiate under the standard rate. What would be a fair amount of commission to pay on this (not including marketing)
-Also, who has set up a dual listing agent before? I'm thinking a dual agent listing with 70% commission going to the success agent and 30% to the other. Should I offer a higher fee than with using just one agent?
Appreciate any advice.
Cheers

 

The selling agency agreement just has ABC Realty in conjunction with XYZ Agency as the “Agent”.

Why?

I don’t think you have thought this through. You first have to find 2 agents, from different competing agencies in all probability, who want to work, or will tolerate working together. Only a 50-50 split between them will see it possible to administer. Under you 30-70 split proposal there will be fights about which agent has which client. Advertising will be jointly done. What if the final purchaser came in from the Internet advert from the 1st agent but ended up in the second agent’s office because of the other agent’s signboard?
I don’t know why you’d want to do this?
You may be thinking that you will get exposure to both agent’s database of buyers but there’s more to it than just that. I’d suggest appointing one agent and only consider moving to another after the first agency period is concluded without a successful sale.

 

Is there anything unique about the property? $5m (even $10m) is still quite insignificant in the Sydney/Melbourne market or for a development site.

You're probably better off focusing on getting the right agent and marketing (if need be have the agents engage with a co-agent) than so it yourself.

The agent will need to work hard for a $5+ sale as there are fewer buyers in the pool ie everyone can afford Woodcroft/Dhurruk/Point Cook etc, many several times over but few can afford Point Piper.

 

Yep - How can you expect 100% out of someone when you're not willing to give 100%?

 

Thanks for all your comments. My thought process between the two agencies was engaging a local real estate agent and also engaging a commercial agent (as it's a large development block), that my be able to reach out to a different market i.e. developers from Sydney. I'm not looking for a bargain agent - but thought I could offer a higher commission rate, which still incentives each party to work hard for the sale.

 

You might find that the commercial agent will reach out to the local for viewings in any case.

 

When property prices in Sydney went over $1 million I negotiated for lower selling commissions, because the agents were still doing the same work & didn’t deserve (in my opinion) to get paid so much more as a percentage — just because prices keep doubling.

my regular agent I gave 1.6 and several offered me 1.3. Work out what is a fair price for their labour and network.