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Real estate auctioneers fees

Discussion in 'The Pub' at netrider.net.au started by Roaster, Sep 4, 2009.

  1. hi guys

    Just wondering whether anyone has any experience in selling a house, and the fees which were charged by the estate agent.

    From what I can see, the actual auctioneer does not cost that much (a few hundred $), but the agent then takes about 4% of the sale, plus advertising costs etc etc.

    If anyone has had any experience selling a home through an agent, I'd love to hear the sort of % values you paid in fees (PM me if you are not comfy putting this information out there)

  2. It is usually around 4%.
    I'd phone a couple and ask them how much they wanted the business?
    Most will "negotiate" if they want it badly enough.
  3. A few things about dealing with real estate agents -

    all commission fees can be negotiated - never just accept what they push on you (like going to buy a car - do you pay "sticker" price or haggle?)

    auctions are used as a selling tool by the agent - to get you to lower your expectations and price. after 6 weeks of an auction campaign with people walking thru your home the agent will tell you "what the market" is saying is the value of the house. This figure is always lower than what you're expecting. This is then used to "help" you lower your reserve / sell price. The agent is after a sale and their commission - they really don't care about what you're price will be and ultimately act on behalf of the buyer (by encouraging the buyer to submit offers - frequently lower than what you're after).

    best option is to avoid auctions and sell in a normal manner.

    rule of thumb - you will get your best offer in the first 2 weeks. after that the offers will decline.

    I'm not saying you wont have to move from your price - you will haggle in the end. just dont haggle it away at a much lower price than you will see at auction. after all, you go to an auction for a bargain - not full retail.

    me cynical? really? worked in the industry. attended many auctions and pre-auction sales meetings. bend over and say AAAHHHHH
  4. Question for you all, if I sell my own damned house do I need to have a licence, or have it overseen by someone with one?
  5. thanks for that guys

    got another question though - are advertising costs included in the commission, or is the advertising cost like the "retainer" for the agent to benefit from providing services even if place does not sell. 3-4% comission sounds ok, but I have heard that some agents also charge $3000-$6000 in advertising fees (ie newspaper, net, open homes etc etc)
  6. I think you can do it yourself but you need to have your sh!t together.

    au.google "for sale by owner" or FSBO - looks to be a fair bit of info.

  7. Advertising costs are on top of the fee. Be careful with advertising. I think it's a good idea to do some but disagree with the extravagant advertising campaigns they come up with. I think it is just you paying to advertise their name in some cases. The internet is a must IMO and the fees for that vary between agents. I went for a little ad in the newspapers as well but my place got a contract on it two days after that and couldn't pull out! I found buyers within 4 weeks of putting my last place and the place before that for sale. I priced them at where I thought the market was, didn't get quite what I was after but got extremely close (within a few %) of what I aiming for. I paid about $500 for advertising on my first place and around $1,000 on my second (with about $600 of that on the 'wasted' ads in the local paper). The agents always give a range for a price you might expect. If you've done your homework, you'll know who is bignoting just to get business and who is close to the mark.

    I hope some of the above info helps.

    In terms of auctions, only do it if there's a boom happening. Otherwise, it can be a costly exercise for no result (around $2k was the number I've often heard in fees all up for running one auction).
  8. [NSW]

  9. I wrote in a bonus agreement for my agent above a certain price. Unfortunately for him, he hit that price where it started. However, he was optimistic of $20k more than what I got and I got about what I expected (considering the bonus started from that price). I'm happy enough with how my agent went.

    Daewoo, with the internet ad (realestate.com.au), different agents charge a different price. In Brisbane, my agent had it for free but in Melbourne I got quoted from $150 to $400 between different agents ($150 from my agent)! I think that is probably a rort because I'm sure they'd pay a flat yearly subscription fee and are probably more than recovering that money.
  10. We've bought and sold many times in our lives and all we can say is ..." when dealing with estate agents expect to be ripped off".