REAL ESTATE COMMISSION FEES AND OTHER COSTS DISCLOSED
As a seasoned independent observer of the real estate industry, we can tell you everything you need to know about real estate commission and fees including expenses that can be avoided if you knew what to look for.
Real estate commission generally ranges from 2.5% to 3.95% of your sale price up to the first $350-$400k then 2%-2.5% on the remainder of the sale price.
To find out what your commission is likely to be, see commission percentages for a range of sale prices.
Another helpful resource is our list of 10 ways to pay the lowest real estate commission while the six most common reasons a house doesn't sell will help you avoid the unnecessary expense of having to relist your home.
One of the costs of selling a house is the advertising needed to market your house to buyers. Different real estate agents may offer incentives for you to list with them, such as covering marketing costs or refunding them at the close of an unconditional sale.
If you need to sell your house quickly or want advice first, call 0800 789 532, we're happy to help and it's a free service.
ADVERTISING COSTS, NEGOTIATING COMMISSION AND YOUR CONTRACT TERM
- Question whether you need to do any newspaper advertising as this can be very expensive. Is it worth it, in your area, in the current market and in your price range? Around 90% of people search for properties online.
- The longer you sit on the market unsold, the more advertising you will need to pay for. How long you sit on the market will be down to your choice of agent and their competency. Have you done your due diligence?
- You might want to consider a shorter contract period to put a bit of pressure on the agent over the sale time frame. The term of the contract is up to you.
- Question what your agent will tell interested parties when questioned about price. Many buyers ask an agent representing a seller, what price you would sell for or 'what will get it across the line?' With the wrong agent, this could end up getting you the minimum you discussed which can cost you tens of thousands, so this is an important issue to discuss with your agent.
- Not paying attention to your curbside and home presentation can cost more than the commission. Agents often say good presentation can add 10 to 15 per cent onto an estimated sale price. This alone can get you tens of thousands more for the least amount of cost, if any at all. If you need help, email us some photos of your property and we can provide you with some advice to get started at no cost. It's all part of our free service.
- You are able to negotiate real estate commission with your agent.
- You may also be able to negotiate with the agent, a refund of the marketing expenses upon an unconditional sale and purchase agreement. Overall, this can reduce your total costs substantially.
- Commission fees may vary from place to place, but a lower commission does not always end up meaning more money in your bank at the end of a sale.
These tips combined with good real estate advice can make a significant difference to your equity from the sale. More commission and fees tips and tricks.
If you need any other tips, get in touch - this is a free service for vendors - and please share this with your friends!
Article updated June 2021 | Trish Willis