3. Agent or commission costs
Budget between 0% (DIY) and 2.5% of the final sale price.
Ahh, my favourite topic…
Yes, you can sell your property yourself without any agent and without paying commissions. If you are comfortable with that, just give it a shot! As long as you don’t underestimate the time, effort, and skillset it takes to sell a property, it may well work out.
If DIY is not for you and you already know an agent who works in the local area and you trust them based on your prior experience, I recommend you engage them again. Great agents are hard to come by and if you found one, stick with them.
If you don’t have any prior experience with agents in your area, it can be difficult to choose the right one. Many vendors in that situation will interview three agents and simply choose the cheapest. Should be good enough, they are all the same anyway, right?
Let’s use an example:
Agent A quotes 1% commission, agent B quotes 2%, and the property is valued at $1mil. The difference is effectively $10,000 less commission for Agent A. So, we just choose Agent A, right??
After further research, reading case studies, client testimonials on RateMyAgent and potentially even speaking with past vendors ourselves, we discover that Agent B consistently exceeds their clients’ expectations by 20, 30, or even 50K. We also learn that Agent B successfully sold numerous properties during a global pandemic, while other agents had low sales and listings withdrawn – even during normal market conditions.
Agent B delivers exceptional results and their “expensive” commission now seems to be peanuts compared with the outcomes achieved for their clients who are tens of thousands of dollars better off.
This may sound a little harsh, but the desperate agent who can’t negotiate their fees well enough will also not be able to negotiate the best price for your property.
Allow me to stress, I’m not suggesting picking the most expensive agent. If you don’t need to achieve top dollar for your property and you have an unlimited time-frame, you may as well choose the cheapest agent you are happy to work with and disregard the other facts.
The point is: Please do your research extensively, as cheap choices often end up costing the most.
Let me sneak this one in:
The possible fourth cost is maintenance and presentation. This can sometimes be a difficult conversation, because of the memories or sentimental value that the home may have, but it is important. Anything you can do to showcase your property in a better light, please consider it. This can include fixing a leaking shower, decluttering, a fresh coat of paint, or professional styling. Have an open mind and a frank conversation with your agent who should be able to help with setting a budget. Remember, you want to appeal to tons of fish, not just the one.