Paying the Agent What is the right amount to pay?
When it comes time to sell, many people will select the agent on the price they quote and the fee they charge. How much and how much? How much do you think our property is worth and how much do you charge? And the good news is, if you want an agent that will quote you a high selling price and low commission rate, you will find one. Actually, you will find plenty.
As a property seller, if you felt that all agents would offer the same level of service and all buyers would be prepared to pay the same amount for your property, you would rightly choose the cheapest agent. But the reality is, not all agents will offer the same level of service and not all buyers will offer the same price for your home.
In a snapshot, the cheapest agent is the agent who leaves the most money in your pocket after their fees and expenses have been deducted from the sale price.
An agent who charges 1% or $10,000 on a million dollar property sale is cheaper than the agent who charges 3% or $30,000 on the same sale. The 3% agent is only cheaper if they achieve a price of more than $1,020,000.
In theory, this is very simple - select the agent who leaves the most money in your pocket. In reality, the property seller needs to make value decisions about the agents before the property is listed, before the agent has begun marketing the home and before the agent has begun negotiating. The seller is in the unenviable position of having to put a value on a service in advance of the service being delivered.
Whether you like it or not, when you employ an agent to sell your home, they are negotiating your financial future. The right agent is an asset and the wrong agent is a liability.
Putting a value on the agent
The best way to weigh up agents fees is to put a value on what they do. Draw up a checklist of what constitutes value in a real estate agent.