Although there are a number of factors that one is mindful of when selling a property, one of the first that comes to mind are real estate agent fees. It's quite common for property sellers to become so fixated on the commission that they're paying to real estate agents that they lose sight of the main goal. The top priority for any seller should be to sell their property at the highest possible price. It's a common misconception that paying a lower real estate agent fee will be in the best interest of the seller.
Rather than becoming too wrapped up in agent fees, it's important to stay focused on the bottom line: the sale of your property for the highest amount of net cash. The net cash benefit refers to the amount of money that you are left with after selling your property and paying all associated fees.
Using the free comparison service provided at sellmycastle.com.au
allows you to consider all of the aspects of each real estate agent, rather than just looking at their selling fees. Quality, reputation, and experience may garner you a higher sale, despite higher fees. To get started, register your property here
Types of Real Estate Agent Fees
There are generally two types of real estate agent fees
. These can be broken down into the following:
- Fixed real estate agent fees - As its name suggests, fixed agent fees involve the real estate agent setting a fixed fee for the sale of the property. No matter what the property eventually sells for, the fee will not change.
- Variable real estate agent fees - Variable fees can change depending on the eventual sale price of the property.
There are advantages and disadvantages associated with both types of fees. A fixed fee can be advantageous in that it allows the seller to know the upfront cost that they will need to pay. Yet this could result in higher than market fees if the property sells for less than what the seller has anticipated. Variable fees can be financially advantageous to the seller if this happens, but the total amount of the fee will not be known until the sale price has been set.
Further Costs to Consider
Not only will real estate agent fees vary according to the type of fee plan you choose, but they can also vary by state and suburb. The local selling prices of homes in the area or greater market forces will influence fees, depending on how much work is required to sell the property. You could expect to pay a 3% commission on a home worth $200,000 in a popular suburb, yet this commission rate would most likely not be expected for a property worth $4,000,000.
Property owners can also expect to pay for advertising costs
, which should be budgeted for as well. Although it's tempting to cut advertising costs, it's important to allow the real estate agent market your home to the best of their ability. Advertising and marketing costs could range from a few hundred dollars to tens of thousands of dollars in some cases. Be sure to discuss this ahead of time when you are choosing your real estate agent.
There are over 5,000 real estate agents available at sellmycastle.com.au
, allowing you to compare a wide variety of options. With the free and easy-to-use online dashboard, you can look at various real estate agent fees and other important characteristics before making your final selection. Register your property now
to find out more about the agents in your area and sell your property with net cash benefit in mind.
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