Selling your home to some can be a daunting task. Where to start who to talk to? It seems in real estate every one has an opinion.
But the big question is how much does it cost to sell your home in the Illawarra?
I’m going to answer that, and also answer why costs vary.
In most cases, a property in New South Wales is one of, if not the most expensive items we own therefore when disposing of the asset it should be treated as one. The time taken here will ultimately determine the profit (or loss) when realising the value of your asset. Sometimes I see people giving more attention to selling items within the home than they take with the home itself.
What a real estate agency essentially does is guide sellers through the maze of the transaction, introduce as many buyers as possible, create competition between those buyers through strategy and negotiate the best terms highest sale price for their client. This process can take days, weeks, or months (certainly we hope not years!!). The agent and the seller work together to create the best possible outcome with a percentage of the transaction going to the agency. Factors that sometimes influence the percentage are the saleability, the area, and the price of the home. Properties at $4m are far different from $400,000. Fees were de-regulated years ago from almost 4% to between 1% and 3%. At the time of writing the average is around 2%. Some agencies negotiate, some have set fees, and some have performance-based structures. It is quite important to look at what you get and why all the fees aren’t the same.
So why do fees vary?
The entry-level in the real estate industry is not anywhere near say a doctor or accountant and we have a high level of people “giving it a try” .The occupation of an agent becomes highly transient.
At face value, all agents look the same right?
The role of an agent is a highly skilled art form and takes months to apply but years to master. In fact, no one working in our firm, and many of the top tier agencies are allowed to act alone for years before they are able to successfully. Unfortunately, many firms allow unskilled (or the bare minimum) representatives acting for home sellers with limited training. The unskilled agents or those with less ability and tools usually discount their fees in order to be more attractive to the consumer.
The misconception is that all agents do the same job. The reality is the skill level between agents can differ immensely. The skill level can mean hundreds of thousands of dollars difference in some cases with the ability to source more buyers, create urgency and competition and expertly negotiate a better outcome. It’s the outcome which is MOST important.
It’s like the busy restaurant theory… There are two restaurants some side by side, one fully booked and the other empty. It usually tells who serves the best food. The best agencies usually sell the most properties.
There is a cost that needs to be weighed up for those looking to hire an agency. The ‘better’ agencies do charge a slightly higher fee for service and the agencies with less ability, experience, or reach charge less. Some sellers look at what they can save in the fee some sellers look at what the end result will be.
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