One of the most common questions that people ask when they start to plan the sale of their property is
“How much should the real estate agent’s commission be?”
Firstly, the most important thing to know is that real estate agent commissions are 100% negotiable. Whilst it’s obviously important to ensure you keep your selling costs to a minimum, one of the biggest mistakes you can make when choosing an agent is to base your decision solely on the commission that the agent is seeking.
You should always aim to choose the best agent in your area, and then negotiate a suitable commission rate with them.
In our experience the agent who offers you the cheapest commission rate is almost NEVER the same agent that has the ability to negotiate buyers to the highest sale price. Appointing this agent ends up costing you a lot more!
As a general guide, real estate agent’s commissions in the Melbourne metropolitan area typically range between 1.3% and 2.5% depending on the price range your property falls within. In regional Victoria commission rates will generally sit between 2.0% to 3.0%. However, agent’s commissions can be structured as a flat fee, a tiered percentage above an acceptable price, or possibly a series of incentives above key target figures.
There really is no “one size fits all” when it comes to agreeing on a commission structure. The key is to ensure that the agent is fully incentivised to get you every last dollar, and there are a number of different ways to do that.
Ian Reid Vendor Advocates help you compare commission rates from the very best local real estate agents. We’ll challenge their proposals on your behalf and ensure the agreed structure of the commission will give you the best outcome from your sale. AND our vendor advocacy service will cost you nothing extra!