Real Estate Agent Fees
What do Real Estate agents get paid for and what are their fees ? Fees can vary however its very important to clearly understand all the fees you will be charged when selling through an agent.
In return for helping to sell your house Real esate agents will ask for the time and costs involved in selling your property in the form of fees.
According to the Real Estate institute of Australia , Every agent should provide you with a quote to sell your home, setting out a " predicted selling price and the agent's fees" .This should be done in writing. The predicted selling price is what the agent considers to be the current market price of the property. It is not a valuation, which is a formal and detailed assessment of the property’s value carried out by a licensed valuer for a fee.
An agents commission may not include advertising and marketing costs . You need to ask if newspaper advertising , signage , or possibly organizing house inspection days, marketing literature and other promotional material included in the selling fee ? Commission alone does not make up all the fees and costs associated with Real estate agent fees. Ask the agent if these costs are specified in the written authority or quote mentioned above.
Some Agency options as defined by REI Australia
- Exclusive agency agreement, where you deal only with one real estate agent, whose fee is payable however the property is sold.
- Sole agency agreement, the same as an exclusive agency agreement, except that the owner may sell his or her property privately without paying the agent's fee.
- Open agency agreement, where you engage a number of real estate agents, and only the agent who sells your property receives the commission. Under this agreement, you may gain extended coverage, but could find that the sale of your property becomes a much lower priority than if you had engaged an exclusive agent.
- Auction agency agreement, where your agent organises the auction of your home.
- Multiple listing agency agreement, where your personal agent works with a co-operative network of agents to sell your home.
For Sale by Owner offers you and alternative . If you are not ready to negotiate and run around to different agents why not list here on Property Sales direct ?