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Selling PPOR Brisbane North

Discussion in 'The Buying & Selling Process' started by Bounce, 25th Jun, 2016.

  1. Bounce

    Bounce Well-Known Member

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    Hi All

    Almost ready to sell PPOR and pretty sure I have found the right agent. I'm just wondering is a commission of 2.95% + GST reasonable or not? I know it depends on what they can achieve and their experience in the area etc but also am sick of paying more than necessary. Thanks ;)
     
  2. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    Do more research. I just sold my Sydney PPOR for 1.65% incl. GST. Different price bracket though.

    In addition, my marketing cost was about 4k, styling 6k.

    Have a look and see which other agents have recently been achieving strong sales prices in your area and approach them for a sales conversation. Find out if you are comfortable with them as a salesperson, in addition they may be able to suggest improvements to your home to improve saleability for you, that you may not have thought about yourself.
    This can help you figure out whether to go with the inital agent or not.
    Take a bit of time upfront before signing an agency agreement and get it right.
    Good luck :)
     
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  3. MyPropertyPro

    MyPropertyPro SE Qld Property Management & Investor Services Business Member

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    I can highly recommend Lynda Roberts of MV Real Estate. Probably one of the most ethical and hard working agents I've come across. Definitely goes above and beyond in all areas!
     
  4. wylie

    wylie Moderator Staff Member

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    In Brisbane the "usual" charge has been "add $18k to the sale price and multiply that figure by 2.5%".

    Your quoted 2.95% is higher than that.

    I've never asked or heard of an agent taking less than the "usual" figure in all my years but it appears others have done so. That does sound high though.

    Also, recently I think things changed and you can negotiate the fee. I'm not sure of this, or if anybody does it. It just seems to be something nobody talks about.

    I have had agents drop some of their fee to get a contract together, but it is not common. It happened to my parents once and to some friends who would not budge any further and neither would the purchaser, so the agent took a cut of several thousand to get the deal together.

    Alternative would be no income for the agent at all.
     
  5. Bounce

    Bounce Well-Known Member

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    Thanks Go
    Thanks for the feedback Gockie it's always such a tough decision with so many variables. The commission is very negotiable always here in Qld but you absolutely need to choose the right agent that is very skillful at the most crucial negotiation stage so it's a hard decision to make.
     
  6. JDM

    JDM Well-Known Member

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    That amount is not too unusual for Brisbane following the removal of capped commission in 2014. Anything from 2% - 3% is pretty standard. I would be more focused on choosing the right agent as they can have a much greater impact on the sale price (eg save 1% but get a purchase price 5% lower).
     
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  7. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    Wonder if an investor from Property Chat will end up buying your place. What suburb if you don't mind me asking?
     
  8. Mick Butterfield

    Mick Butterfield Well-Known Member

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    If you feel comfortable with and confident in the agent then I would be happy to pay the fee. Fees pale into insignificance if you get an agent who can not negotiate/market effectively and the property sits around for months and/or sells below what a good agent can get you.
     
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  9. Bounce

    Bounce Well-Known Member

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    Hi Steven
    The suburb is Cashmere which is about 17 km from Brisbane so more of an owner occ. rather than investor for this area.
     
  10. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    Ok cool. Yep, probably not too many investors looking there.

    Let us know how to sales campaign goes. Will be insightful to see things from the other side :)
     
  11. David Kaity

    David Kaity Member

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    There are some excellent real estate agents out there (although very few). Paying a commission, however, is never justified. Unfortunately most people think that interviewing 3 or more agents is the solution and it's all about finding the right one. It doesn't matter who you end up with, if you pay a commission, you will always walk away with less money than you should. There is a process or a recipe for selling a home successfully and this process doesn't care who follows it. Most people do value and require guidance, however, it shouldn't cost you anywhere near 2.5%.
     
  12. Mick Butterfield

    Mick Butterfield Well-Known Member

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    I don't know how you can say paying a commission is never justified. A good real estate agent (of which I would like to think I am one) is able to achieve more than may otherwise be achieved if sold privately. Good agents invest heavily in their training, negotiating and communication skills and are a wealth of knowledge of the local markets. There are countless times that I have negotiated well past the point where I had a happy vendor to a level that they would never have achieved by themselves.

    I understand you have a barrow to push, but wide ranging, sweeping generalisations about an entire industry and rarely founded.
     
  13. David Kaity

    David Kaity Member

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    Mick, I have no more of a barrow to push than you and I completely agree with you in that a good agent can help people achieve more than could be achieved by a private sale. Like you, I think private sellers often leave lots of money on the table. It is, however, misguided to suggest that only real estate agents have good negotiation and communication skills and market knowledge. It is also misleading to suggest that market knowledge automatically leads to achieving a higher price. I've seen countless local area experts undersell properties.

    My point is that the best possible result can be achieved by other, cheaper methods than the traditional method.
     
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  14. Mick Butterfield

    Mick Butterfield Well-Known Member

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    I agree that some 'experts' are nothing more than well marketed people in business wear. When push comes to shove the value of an agent (or other) primarily comes down to negotiation and being good at it. FWIW i too think that real estate commissions upwards of $20,000 which is all to common now are unsustainable and open for disturbance.
     
  15. David Kaity

    David Kaity Member

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    Well said Mick. Couldn't agree more.
     
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  16. Ed Barton

    Ed Barton Well-Known Member

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    English please?
     
  17. David Kaity

    David Kaity Member

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    Sorry Ed. I do tend to ramble on occasion. I'm not sure which part of my ramblings you need further clarification on, but essentially I recommend that people look at every dollar they spend to market their home as an investment where they should aim for around a 3 Dollar return for every dollar spent.

    From my experience, a better way to achieve this is to spend money on the preparation and presentation of the house instead of a commission. Once you have done this, you can use the expertise of someone other than a traditional real estate agent - who will charge significantly less - to guide you to achieve a successful sale for top dollar.

    Only one result matters for most people who are selling: walking away with the maximum amount of dollars possible. Paying a commission makes this hard to achieve, especially when good real estate agents aren't the only people who can help you achieve top dollar.
     
  18. Normailson

    Normailson New Member

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    Am I being too revolutionary by suggesting a performance based commission??? Just makes perfect sense to me. The better the price the higher the commission. I'm not going to reward an agent who quotes me a high price, signs me up for a high commission, then gives me an average sale price (does that sound familiar to anyone?).
    Get me that price that you told me and you will get your full commission. Otherwise, I still get good money in my pocket because the agent doesn't get his full commission. Win-Win.
     
  19. BarneyRubble

    BarneyRubble Well-Known Member

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    Performance based commission, you mean like in other sales roles? Good luck getting an agent to agree.
     
  20. ellejay

    ellejay Well-Known Member

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    We've just recently advertised our PPOR on gum tree. It's in country Vic. Had one offer already and a second viewing this week. I don't know if you feel comfortable selling privately but we thought we'd try it before calling in agents. Might help with selling, and save some money if you can split the agent fee figure with the buyer.