When engaging an agent to sell your home, the main fee is the sales commission, or the ‘selling fee’.
According to REIWA President Damian Collins, this can either be a percentage of the purchase price or an agreed amount outlined prior to sale.
“Agents are legally permitted to charge a selling fee and the fee associated with the negotiations for the sale of the property cannot be claimed until settlement,” he said.
Realmark Urban Sales Representative David Murray added that sales commissions contributed an important piece to the overall puzzle, reflecting the agent’s ability to defend the desired value of your home.
“If an agent walks into a listing appointment and is prepared to drop their fee by half to undercut competition, imagine what they’re willing to do when it comes to the price of your home and negotiating with buyers,” he said.
“An agreed fee is crucial, as it allows agents to prioritise your property, campaign and time.”
Other than an agent’s commission, the fees paid by the seller are usually to cover the marketing of the property, according to Mr Collins.
“Agents now receive a lower commission than 20 years ago and the seller pays for the marketing costs,” he said.
“This is in many cases a win/win outcome, as the seller has committed money to the sale of the property and both the seller and the agent are motivated to sell the home for the best price possible in the current market conditions.”
Mr Murray highlighted the importance of marketing for a successful sale from an agent’s perspective.
“Marketing fees always vary, and this can be because of the property, price range, uniqueness of the product, suburb and the seller’s budget,” he said.
“More of an investment in marketing equals more buyers engaging with the property, resulting in more potential buyers viewing the home and making offers, and therefore receiving a higher price.”
Another fee which is often in the mix is a search fee, which Mr Collins described as a fixed amount charged by the supplier of the property such as Landgate.
“Agents need to search the Certificate of Title and any associated documents held by Landgate,” he said. “It confirms the seller is actually entitled to sell the property.”
A property report is obtained by the agent and details any interest that government departments may have in the property, or any other outstanding concerns.
When choosing an agent, Mr Murray said the cheapest agent wasn’t always the best.
“When prospective sellers interview multiple agents, rarely do they interview and make their decision based on which agent is offering the lowest fees,” he said.
“We always encourage sellers to engage an agent whom they think will get them the best price and the best overall outcome.
“If an agent doesn’t sell or get an offer high enough for the sellers to accept, then an agent won’t get paid.”
The West Australian
Mon, 5 July 2021
Anthony Matteo