If you don’t have previous experience selling your property, then you probably are unsure where to start. Do you go to that real estate agency you drive past on the way to work and let them handle it? Well, that could be a big mistake, like most services some are better than others.
Property is a well tried and tested investment, which means there are proven ways to sell your property that work. Taking a chance on the first real estate agent you come across isn’t one of them. And, unless you know what you’re doing, self-selling isn’t going to be one either. The very best way to sell your property is to compare qualified real estate agents in order to find the best agent for you.
Comparing Real Estate Agents
Seeing as having a good real estate agent is the best way to sell your property, finding a reputable best comparison agent is an essential step. The agent you select should have the experience that you need to help you fetch the highest possible selling price for your Australian property. And, most importantly, a good agent will be honest with you.
In order to know if your agent is being honest, you will have needed to do your research on your property. You should have a general understanding of the areas local market, what repairs or renovations your home might need, recent sale prices of similar houses in the same area and comparable quotes for other real estate agents’ fees.
If you understand those basics, then when your real estate agent suggests a realistic selling price, tells you what improvements you need to fetch a higher price, suggests an advertising budget and lets you know their fees, you will know if they are being honest and that their fees are reasonably priced for the services that they are offering.
What Fees to Expect When Hiring a Real Estate Agent
Once you have a shortlist of potential agents to sell your property, then you need to compare costs in order to choose the best one. The two costs for a real estate agent that you need to compare are fees and commissions. The fees involved are designed to cover the agents costs for advertising and marketing your property, and the commission is the percentage of the final sale price that they will earn.
Commission averages for Australian real estate agents vary from state to state as well as between metro and regional areas. For reference, the lowest is about 1.6% and the highest at about 4%, with the country average being about 2% to 2.5%. It’s important to remember that marketing costs are an extra fee and not included in this percentage. These can also vary quite a bit, starting at $500 and going into the thousands.
Not every agent structures their fees in exactly the same way, so it’s very important you understand what exactly each quote involves in order to make an informed decision. It’s also good to note, that it is quite common if not expected to negotiate these fees. There are no legal regulations governing commission percentages in Australia, which means you have the power to negotiate. It’s also another reason why getting quotes on commission structure is so very important, it’s the only way you can equally compare agents.
Here’s what else you need to remember when it comes to the costs involved with selling your property:
- Australia charges a GST figure of 10% on all real estate transactions.
- Selling your property at auction requires the payment of an auctioneer’s fee.
- Conveyancer and solicitor fees are still required even when selling.
- If you still have a mortgage, you will usually be charged a mortgage discharge fee when selling.
- If you live in the home naturally you will have to move out, so don’t forget about those moving fees.
If you are prepared for the expenses involved in selling your property and you do your due diligence when selecting an agent, then you should have no trouble selling your property for a high price. There are plenty of tools and calculators available to you online to help you determine the correct price for fees to help you plan ahead and be prepared.
