The Run Down On Commissions
Real estate agent commission percentages in Western Australia vary from 2%, but can go up as high as 4% of the total sale price, depending on location and the amount of competition between agents in an area and the individual licensee requirements.
How much commission does a real estate agent make?
Do the math and you would assume that agents are rolling in cash.... not so..
The reality is, when an agent works for a principal or real estate agency, they don’t take the whole cut. The commission gets split and shared between the parties, the ATO gets their share and if they don't charge you marketing fees they actually make less than one would typically think. There are high costs in subscription fees, advertising fees on marketing portals, signage, vehicle and fuel expenses and office expenses to consider. Add in franchise fees from agencies on top of this, and agents make even less - something to bear in mind when you begin negotiating fees and commission with a real estate agent.
Another factor to consider is the condition of the market. When markets are slower, commission rates tend to be higher as there are less properties to list for sale and it often takes much longer to sell - especially in regional areas. Not only does this mean agents find less business in slower markets, but it also means they have to work harder for you in order to achieve the positive results that come with an active market.
Sometimes, it is not so much about what an agent charges you, but more about what it could cost you if you get the wrong agent to sell what is your most valuable possession. Note important factors such as:
How you connect with the agent during your conversation
How are their communication skills, did you have to chase them up?
Their enthusiasm and effort to support you through the process- all the way to the end!
Ultimately we think you should pay your agent what they’re worth and focus on their performance and the service they provide, rather than just their fees and commission.
What's important to remember from all this is that our commission structures are flexible at Harry Griffiths Realty. We will negotiate a commission with you that you are comfortable with and you will know all costs up front, with no hidden charges. In most cases we don't charge marketing fees and believe these costs should come out of our commission. We will always put 100% effort into every property we sell no matter what size and price is asked.
So give us a call and see how we can sell your property with a commission charge that you will be happy with.