Real estate agents help you to sell your property. However, there is a certain amount of money you have to pay for this service. The agents get a certain percentage of the selling price on the property. The fees the agents receive vary depending on the property listing and the agent.
Other factors that affect the prices changed by the agents are the historical success of real estate agent, market sales, and the turnover. Real estate agents that have higher sales usually increase the percentage of commission that they charge. The HVG helps clients and agents to establish the real estate fees and the commissions. Since the fees differ, you need to carry out research before hiring a particular real estate agent.
How much do real estate agents charge?
Normally, the real estate commission is a percentage of the property’s sale price. Also, you need to part with GST on the real estate commission. It is because the GST is not tax exempt. Some real estate agents have fixed fees, but it is not easy to get such agents.
A majority of the real estate agents get a percentage of the selling price on the property. For instance, a property worth $600,000 where the agents charge 2.5% mean that the commission will be $15,000.
What are the current real estate commissions?
During the time when the states were deregulated, real estate agent could come up with their fee. Most agents based the price depending on the property demand. For instance, areas that had lower home prices have high agency rates. The current real estate commission is between 2% to 5%. The good thing is that you can negotiate with the agent to reduce the percentage they charge on the property. It depends on how good you are at convincing the agent.
Is it possible to reduce the real estate fees?
Yes. You can negotiate with the agents to reduce their rate in case you are on a tight budget. You will also save money in the process. You can negotiate the fees if your property is located in an area that is desired by many people. The reason is that it is easy to sell property in such an area.
Desirable areas have highly property listing, and you can negotiate for lower fees. The higher the property value, the less commission charged by the agent. Additionally, you need to know the value of your property and make sure that you present the property well. Make sure that you have some knowledge about selling the property because you will be better equipped when you meet the real estate agent.