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Selling a house
Tips please


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12 replies to this topic

#1 B.feral3

Posted 21 November 2012 - 09:57 AM

I have bought a house but never sold one.

I was hoping for some tips when it comes to agents and commissions, advertising costs and so on. No two agents seem to do it the same way and I am heading into unfamiliar territory.  

I also want to know about negotiating these rates and what commission others sold at.

We're in QLD if that makes a difference.

Thanks in advance.  original.gif

efs

Edited by Bek+3, 21 November 2012 - 09:59 AM.


#2 threeinnyc

Posted 21 November 2012 - 12:44 PM

We don't have that many experience of selling, except one time, our RE (a very prestigious and reputable one) did the whole lot, from providing a stylist etc. We've sold ours within few days (Sydney's north shore).

So maybe you can have a look/compare RE in your area?

Good luck!



#3 crackles

Posted 21 November 2012 - 01:11 PM

Quite a few re agents don't charge for advertising. There's also a standard they charge for commission - look it up in google I forget the website. It's something like 5% on the first 18k then a % on each k or do after that. Very vague sorry! My baby brain has lost its memory!
Here it is!

Edited by crackles, 21 November 2012 - 01:13 PM.


#4 oomps

Posted 21 November 2012 - 01:24 PM

In the last few years I've sold three houses in ACT and VIC and commissions I've paid have been 1.5% - 1.65%. All of these have been negotiated down from agents who have initially stated that their standard commission is between 2 - 2.5%. Each time we've included an incentive payment. Eg 1.5% plus 10% of any amount over x. Or 1.5% rising to 2.5% if they achieve over x amount. I know a friend who needed to sell quickly and she negotiated a commission that decreased every week the property hadn't sold.

Advertising varies depending on how many ads you run and where. Internet ads cost more to have your property appear as one of the first in the list each time (ie: keeping it more prominent). I've found that things like photographers, floorplan, copywriter, signage boards etc are pretty standard between agents. Remember you can always increase the number of ads if the campaign is going a bit slowly.

Good luck. Hope that helps.

#5 Phascogale

Posted 21 November 2012 - 01:32 PM

You're really going to have to speak to all the agents in your area as to what they exactly do and what they charge.

I would also get recommendations from friends if they have recently sold.

Like PP said, some agents don't charge for certain advertising but you may find that their commission is more than if you paid for advertising yourself.  Some of whether you save money will be dependant on how long it takes to sell your property though.

When we sold we saved about $1000-1500 on the commission by paying for our advertising seperately.

You'll probably find that all the agents in your area will charge a very similar commission.  The commission the agent will charge may somewhat depend on the price of your property ie you may find an agent will charge 2.5% for a property worth around $500K but only 1.5% if the property is worth $1,000,000.  The house we sold was in Vic (metro) and the agents in our area charged roughly 2-2.5% for a property like we had.

As for advertising, just as an example, you'll probably find that for a very basic board out the front ie just For Sale and no pics, will set you back about $100-120.  Advertising in your local newspaper probably about $200 a week for a basic ad with small picture (if you're lucky your RE will upgrade this at no extra cost to you to a 1/4 page with a couple of photos - they may do this in the first couple of weeks when you first start your campaign).  Professional photos around the $200 mark.  You don't need these but they can make a difference.  (There's a real estate agent around here who takes photos with an ordinary point and shoot camera but the settings much be wrong because they always show up grainy and pixellated when they go up on realestate.com.au - you don't want this).  Then there's the internet fees (not expensive but you'll have to pay for these).

You'll need to decide whether you want to do open for inspections or only by appointment.  Even if you have an open for inspection, not everyone can make it at this time so you will find you'll probably be doing by appointment inspections anyway.

Then when getting your house ready.  Take as much stuff out of it as you possibly can so that it looks less cluttered.

#6 mini mac

Posted 21 November 2012 - 01:43 PM

Some real estate agents do % of sale, some do a fixed rate. some say fixed rate then add on extra fees. In WA from what I've been told lately its approx 2-2.5% or about $10000-15000 depending on where you go.

Write a list with questions to ask each agent. Don't sign anything until you're sure you understand and have shopped around.

Things to consider

1) Breakdown of fees

2) Does that include advertising and signage out the front? And for how many weeks (some only will include a few weeks or certain amount of advertising for free, then expect more money to continue)

3) Do the fees include professional photography

4) Where do they advertise (hopefully as many papers and internet sites as possible, and how, large editorials, with or without photos, top of listings on the net etc etc)

5) How many days a week will they open

6) How many weeks will your contract to that agent be

7) How will they advertise $ on your place. I've been told not to put an upper amount on as that limits who will look, and also may put a cap on maximum offers

8) Shop around, ask for a better price, or if they can include anything for free

9) Trust your instinct, if you get a good vibe from the agent its probably a good thing. Buyers will like that too

10) My dad always said, look at the car they drive. If they work on commission, they will want to get the best price haha ie if they drive a better car, they're more likely to be a better seller... Don't know if thats true but I think its a funny thought.

Ah, gotta go. Bugalugs is squawking. Hope this helps. If I can get back and add more I will.

Edited by minimac, 21 November 2012 - 01:44 PM.


#7 ellebelle

Posted 21 November 2012 - 01:50 PM

In QLD, they all still pretty much work to the standard contract which is 5% of first $18000 and 2.5% after that but it is negotiable. I never pay for any advertising. It really comes back to you knowing about your market. ie. is it in an are where things are starting to pickup, do you have the best house in the street etc.

#8 oomps

Posted 21 November 2012 - 02:08 PM

QUOTE (minimac @ 21/11/2012, 02:43 PM) <{POST_SNAPBACK}>
10) My dad always said, look at the car they drive. If they work on commission, they will want to get the best price haha ie if they drive a better car, they're more likely to be a better seller... Don't know if thats true but I think its a funny thought.



Funny, I always think I'm paying them too much when they turn up in a shiny new Merc, and so does their 20 something year old assistant! But maybe that's just the green eyed monster.

#9 mini mac

Posted 21 November 2012 - 05:48 PM

QUOTE (oomps @ 21/11/2012, 12:08 PM) <{POST_SNAPBACK}>
Funny, I always think I'm paying them too much when they turn up in a shiny new Merc, and so does their 20 something year old assistant! But maybe that's just the green eyed monster.


Yeah I admit i thought that too... until Dad put it that way. But whta if they put all their money into real estate or holidays?? You never know really...

#10 B.feral3

Posted 22 November 2012 - 02:26 PM

Thanks everyone. Sorry I haven't come back sooner.

I spoke to 2 agents today. One said they just work off standard commission. (That was the be all and end all.) The other said he would reduce the initial 5% down to 2.5% and leave the rest at 2.5% so that's a saving of $450. Meh... not the answer I was looking for.

(The standard in QLD is 5% for the first $18,000 and 2.5% thereafter.)

I want the 2.5% thereafter reduced LOL!!

Both had advertising fees on top of that.  mellow.gif

Thanks for all the replies. I learned a lot of new and useful information.

#11 Feral WibbleWobble

Posted 22 November 2012 - 02:31 PM

I found this website to be really helpful with regards to house selling. I also rang them and got some advice (free) over the phone when we needed some clarity on which agent to go with.

Good luck.

#12 qak

Posted 22 November 2012 - 02:31 PM

I am intrigued by the $18,000 ... don't see many priced like that!



#13 CleverChook

Posted 22 November 2012 - 05:12 PM

Another tip is to open list.   Now I know that agents will try to talk you out of this, but exclusive listing can mean you're tied up with a dud agent for a whole month (learnt that the hard way!).  So last time we sold, we open listed, despite only dealing with one agent (so the general public wouldn't have known we were open listed).  If you take this course, you may need to pay for advertising, but we had a young and hungry type who backed himself and got us a good result.




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