What are some common factors that Real Estate Agents take into consideration when determining your commission amount?
The value of your property can determine your Real Estate commission amount
A Real Estate agent may be prepared to take a smaller cut of the commission simply because the value is higher than the average sale, and at the end of the day, they still get paid an enormous fee for a relatively small amount of work.
The type of property you're selling
If you have a different, or unusual property, a Real Estate agent is likely to charge you a higher commission rate, as there may be a bit more time involved in getting the property sold.
The commission real estate agents charge in NSW varies quite widely depending on where you live. If you live in a metro Sydney area - where there are lots of agents competing for your business - you can expect to be charged a lot less than a regional area postcode.
The supply and demand of Real Estate agents can determine commission
When there are a lot of Real Estate agents in a single area, then agents will generally lower their commission rates in order to get the property sold. To get business they are forced to lower their rates. The reverse applies in rural areas, where fewer agents mean there is less competition for listings, which results in higher commissions.
The Quality of the Real Estate agent
How do you know if your Real Estate agent is any good? A good sign is to Look for recent sales of properties similar to yours. Ask the agent about their commission rate.
An agent is essentially advertising your house online for you, then taking the phone call from the buyer and contacting you to arrange the inspection. While it may not seem like rocket science, it's always best to have an agent with a good phone manner.