One of the first factors that people think of when selling a property 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 –selling the property at the highest possible price. Paying a lower real estate agent fee is not always in the seller’s best interests.
The free comparison tool
provided by Local Agent Finder
allows you to consider all of the aspects of each real estate agent, rather than just looking at their selling fees. There are a number of important factors, for example, quality, reputation, and experience may garner you a higher sale, despite higher fees.
Types of Real Estate Agent Fees
There are generally two types of real estate agent fees
. These can be broken down into the following:
1. Fixed real estate agent fees – These 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 is fixed.
2. Variable real estate agent fees – Variable fees will change depending on the property’s sale price.
There are advantages and disadvantages associated with both types of fees. A fixed fee allows the seller to know the cost up front. But this could result in higher-than-market fees if the property sells for less than the seller anticipated. Variable fees can be financially advantageous to the seller if the property sells for less than anticipated, but the seller won’t know the total amount of the fee until the sale price has been set.
Other Factors That Influence Agent Fees
The local selling prices of homes in the area, greater market forces, advertising and even how much work is required to sell the property will influence fees. Not only will real estate agent fees vary according to the type of fee plan, but they can also vary by state and suburb.
For example, 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. Agents are more likely to accept lower commission on higher property value.
Property owners can also expect to pay for advertising costs
. Although it’s tempting to cut advertising costs, it’s important to allow the real estate agent to 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.
Aside from advertising, other work goes into selling a home, from things like the number of inspections that need to be organised, to minor home improvements, paying for professional home-stagers and even hiring an auctioneer, but a good real estate agent
will let you know about all of these costs before they come up.