The Selling Process

Looking to sell our ppor soon, wondering about the process...

What is the typical exclusivity length you need to agree on to sell your place? do agents tend to negotiate on this? I'd hope for three months ideally.

Do agents negotiate on their commission any? We'd do a private sale (not auction), is it common to offer x% for a sale above $Y?

I pretty much know which agent I'd go with based on their recent sales in the area, but I'm talking with a few others just to be sure.

(for info, this is in vic inner west)

 

I have negotiated fees before but I've always wondered if anyone has ever tried negotiating a tiered commission based on the sell price. My concern is that if the commission is too low they don't care as much or they don't push for $10k more if it's only getting them an extra $100.

 

Here in Brisbane what I noticed is most Agencies would charge Advertising/Photos/Marketing from $2k-5k. So if you leave them after 3-months and start with a new Agent, you will have to pay 2 lots of Advertising fees....

 

Some states prohibit advertising as "offers over".

Most agents will drive you towards auction to create a sense of urgency for buyers ie there is a finite sale date (though it van be a ploy to get offers beforehand, if there is adequate interest it may go to a best offer or be taken to auction).

Agents don't like to negotiate on commission, it shows a weakness in their negotiation skills. Better to get more value from their marketing.

 

You can negotiate most things in the sale process and agent rates is no exception.
I’ve sold one and have another coming to market soon and my agent has saved me tens of thousands on this front.

 

SNM - I read this as The OP was talking about REA commission not necessarily the advertising campaign which agree, in Vic can no longer legally advertise as ‘offers over’.

 

I have used on a couple of occasions a higher % once above $x with very good results.

So not quite a tiered approach as asked as that would mean once the sale price hits a higher tier there is less benefit to the agent to push buyers hard until the next tier is reached.
You really need to know your prices & market well though to ensure that the high % kicks in at the right point ie a good sale price.

It was structured like this:
- agent agreed to slightly lower 2% instead of 2.2% for base commission (Melbourne suburbs)
- Then it was 10% above $x.
- Advertising etc as per normal.

As I said you need to be confident in the $x but if you are it can work well. It must be a stretch target for the agent that is possible but a price you would be very happy with and above expected market.

In one example agent had one buyer offer only and went back multiple times and ‘pushed them up’ an extra $45k over initial offer which was a good sale price.
They got the sale & commission paid but worked the buyer very hard & earned an extra $4.5k commission and I received an extra &40.5k over a good sale price I would have been happy with.

This has worked well twice (Incl above example) for very good results.
Properties very well presented or staged.

Third example just got a reasonable price around market value (no incentive kicked in) as that property had less uniqueness as a townhouse in a complex.

So it can work, but to work well I’d say it’s important you find a very good agent who is agreeable (not just anyone chasing a listing) and you must know your market prices.

Good luck