Selling your home can be a confusing and daunting task. As with most things, confidence and knowledge will generally improve with practice, however most homeowners will only have the opportunity to sell a property a few times in a lifetime. Working to make strong financial decisions during what is often an emotional time can be overwhelming, so I hope that this information can help you to make more informed and educated decisions.
The main question people have is “what does it cost to hire a real estate agent?”
When you hire any Coffs Coast real estate agent to sell your property, you will commit to paying a fee or commission once the property is sold. As there is no ‘Recommended Retail Price’ when it comes to Agent’s fees, this will differ from agent to agent
Most agents In the Coffs Harbour area will charge a percentage of the final sale price, which is payable to your real estate agent once your property sells. Commissions are put in place to act as an incentive for agents to get the best price for your property with percentage rates rising in accordance with the final sale price. In addition, there may also be added fees on top of the commission charged.
The fee will vary depending on the location of the property as well as the experience of the agent, the value of the property and the market at the time of sale.
On the Coffs Coast, this rate will range from around 2% - 3% of the sale price, although some agents fees may be lower or higher than this range. High commission structures will generally include the price of advertising, while the lower rates will usually have additional marketing charges.
What does that mean for you? You need to be confident that you are being charged a fair and honest price. Take into account the average for your area, the agent’s selling experience and knowledge of the market, the desirability of the property and what the agent is offering (and including) for their fee.
What extra charges, and when they are due to be paid, is another important component to the vendor-agent agreement. While in most cases it is safe to assume a “no sale, no fee” agreement is in place, it is always best to ask the question.
For agents who offer a lower commission structure but charge additional advertising fees- those fees are often payable even if the sale does not go through. Other real estate agents charge you as and when additional costs arise. Make sure that the agency agreement is plainly outlined, and that you know what you are signing up for BEFORE you put your pen to paper.
When discussing the fee structure with your local estate agent, remember that a GST of 10% is payable on all commissions, so be sure that the price you have been quoted is INCLUSIVE of GST.
By looking at the package as a whole (What is the commission rate? What does it include? What advertising am I responsible for? What is this money owed?) you can best assess the pros and cons of each agent’s offer.
My fee will vary according to the value of the property being sold, generally with the range of 2.2% - 2.75% including GST.
Our marketing package is one of the best offerings on the Coffs Coast, and is valued upwards of $3,500 – we pay for all expenses up front however we ask that you contribute $1,690 to this cost once the property has been sold.
If you are considering selling your Coffs Coast property, make sure use the best real estate agent in your area, rather than just the cheapest. In most cases, the difference between the lowest and highest fee-quote that you receive will be within the range of $1000-$2000. Yet the end sale result between the cheapest agent and an experienced professional can be tens of thousands of dollars.
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