If you are selling through a real estate agent you need to be confident you can trust their advice.  Don’t just pick the first one you talk to.  Interview at least three agents from different companies before choosing one.  Ask them to give you an assessment of your home’s market value – they will do this for free and it’s a good way of getting to know them.

Choosing a real estate agent
Here is a list of questions to help you choose an agent:

• How long have you been working in real estate? How experienced are you? What qualifications do you have?
• Do you know and work in your area?
• Can you provide a list of previous clients to talk to?
• What houses have you sold in my area recently?  What prices did they fetch?  How did the final sale price compare with the list price or RV?
• What is your commission and what will I get for that?
• How will you market my property?  What marketing mix do you propose?  Why?  How have you marketed other similar homes and what was the outcome?
  

Keep in mind:

• Are they pleasant and professional?
• Do they listen well?
• Do they answer your questions?
• Do they establish rapport?
• Do they honour their commitments e.g. if they say they will get back to you in a certain time, do they?
• Will they keep you up to date e.g. report back after each open home and provide feedback from prospective buyers?

Exclusive listings
Most agents will try to persuade you to list with their agency exclusively.  While that limits the exposure of your home, it has the advantage of giving the agency more incentive to work harder on marketing your property, since they don’t run the risk of seeing another agency reap the benefits of their marketing efforts.

How much should you pay for marketing?
The commission you pay to the agent for selling your home pays for:

• Company marketing (this helps the agent’s company to build a reputation in the market and encourage buyers) 
• The building and maintenance of the company’s website where your property can be listed 
• Access to an extensive database of potential buyers who may be interested in your property
• The work and resources the agent puts in to show your property to buyers.

However, you will need to make a contribution to the cost of marketing your home – for example, advertising in newspapers, Property Press, or on websites like Open2View.  How much you decide to invest in marketing will depend on your personal circumstances.  Your agent will work with you to develop a marketing plan that meets your budget.

What if the house doesn’t sell?
You do not have to pay commission to the agent if the house doesn’t sell.  You will however need to pay for any marketing costs associated with trying to sell the property, and (sometimes) an administration fee charged by the real estate agent – regardless of whether the house sells.

Real estate agent fees
Real estate agent’s commission structures vary but three to four percent is common.  Most charge a set administration fee as well of around $500.  In addition, you will need to pay for marketing costs – there are a range of options.

Commission is often negotiable.  It’s worth asking the agent if they will reduce their commission.  They may not (and a good agent is worth their fee), but it’s worth raising the subject. 

Next page | Getting your home ready for sale >>

The content on our site is for information only. You should obtain professional advice relevant to your circumstances. Our lending criteria, terms, conditions and fees apply to all loans. Contact us for more details.