FIGURING OUT COMMISSION

It might be tempting to go with the agent who charges the lowest commission percentage – but the percentage isn’t the whole story.

By Katie Loader

31-07-2018
Let’s assume your property has recently been valued at $500,000. Most agents in your area charge about 2.5% commission.

This means that if your home sells for $500,000, the commission is $12,500.

This puts $487,500 in your pocket.

You might think it’s better to choose an agent who’ll only charge a commission of 1.8% but there may be underlying reasons that they’ll accept a lower rate, such as:
– They won’t have much time to spend on preparing and selling your property and achieving the top price.
– They’re desperately seeking listings to build their portfolio.
– They’re only recently qualified so don’t have much experience or confidence in selling homes in your area.

It’s not unlikely that this agent’s lack of experience, confidence and attention
means that your home sells for $495,000.

Although you’re paying a lower commission of $8,910, you only end up with
$486,090.

This means that you’re come away with $1,410 less than if you chose an
agent who delivers results that justify their higher commission rate.

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| Agent Team Belconnen