What is reasonable cost?

An agent advised their marketing cost is $4k plus 2.5% commission, is that reasonable? And if it didn't get sold the marketing cost is still payable...

Why would the marketing cost cost so much?? I could put up a listing on RE myself anyway. Is there a reasonable way of negotiation so that vendor can sell at own price at least?

 

What has been included in the marketing?

If the agent spends money on marketing then they'll want to be paid - sounds reasonable.

Have you asked for a price inclusive of marketing? Ie at the agent's risk? The danger is that there may be corners cut ie using secondary websites or not advertising etc.

If you want to minimise your costs use a for sale by owner website but possibly at the cost of achieving the best price in the shortest time.

 

You can't unless you go through one of those FSBO agents.

 

I never pay for marketing. I don't negotiate on their commission but tell them straight out i will not pay for marketing. They make enough as it is for little work why should I cough up to promote their company.

 

Thats an idea.

 

Oh yeah? That's what I thought too, so you could actually do that?

 

You can do what you like

Last time I sold a house was 10 years ago and agent wanted 1k for marketing.

I never paid it as I referred him 6 people who listed and sold their house through him. Fair enuf I reckon.

 

I think in Vic last year, marketing was $3,400 with a 1.5% commission. The agent let us know up front what the marketing pack included. Things like photos, a floor plan, brochures, professionally written advertising material, premium listings on web sites etc. The marketing material was very poor quality and pretty much a waste of money. I would get a list of all the things included in the marketing then get your own contractors to do the work if you can be bothered. Things like floor plans and photos can be better and cheaper if you organise them yourself.

Also, the 1.5% commission agent did a pretty poor job. I should have paid more to get a better agent.

 

I don't think its the commission rate that matters. We sold our old PPOR for 1.65% (marketing was additional though) and she did as good or better than an agent charging over 2% + big bonus for getting over a certain price (which was our floor price anyway) (plus marketing additional which was even more from memory).

I knew that our agent would do a great job because we checked all the recent sales every agent did in our local area over the past few months and gave each agent's sale a score out of 10 for each sale price in relation to the homes. The agent we engaged had the standout average score and with a lower commission too. I also understand the other agent also has a bit of a reputation of being a bit pushy (and at the end of the day she didnt come across very positive too when talking about sale price either, she was talking down our area and I thought that was interesting/bizarre) but I didn't feel any of that with the one we used.