Should I Pay A Real Estate Agent To Sell My Property? (Ep250)
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Should I Pay A Real Estate Agent To Sell My Property? (Ep250)


Should I pay a real estate agent to sell my
property? Real estate agents are expensive. They do take a percentage of the sale price
of your property. So, is it worth spending this money on a real estate agent to sell
your property or would you be better off selling the property yourself?
The fees for real estate agents tend to be around the 1% to 21/2% mark of whatever your
property sells for. Depending on your area and the value of your properties in the area
and maybe outside of this range, I found that in residential areas in major cities at the
Gold Coast or Brisbane or Sydney, etc., the fees generally tend to be around that 2% mark.
My parents sold their property a few years ago and they paid 2.2%. My mother-in-law recently
sold her property and I think she paid around the 2% mark. I have seen fees as low as 1.1%
and I have seen fees higher than 2.5%. Often, the more expensive your property the
lower the fees are because obviously they’re going to get a larger Commission on a $1M
property than they are selling a $100,000 property. So that is kind of what you are
looking at. To give you an idea if your property is worth $500,000 and you’re paying a 2% commission
that will be about $10,000 that you would be paying out. If your property was $1M and
you are paying a 2% commission that would be about $20,000. So $20,000 is a lot of money,
so is it worth using a real estate agent? There is a bunch of things that you need to
do when selling your house. I therefore think it’s good to assess the things that you going
to need to do and then work out whether you should hire a real estate agent or not rather
than just looking at the $20,000 figure or the 10,000 figure and saying: Well, I don’t
want to spend $10,000. Of course you don’t. Who wants to spend $10,000! It’s important
to know exactly what is involved in the process and you can work out whether that money is
well spent or not. Here’s a list of a few different things that
the real estate agent needs to do. They need to do online marketing of your property. This
is becoming more and more important because people make decisions almost exclusively online
now and if your property isn’t online or doesn’t look good online, then less people are going
to be interested in your property and it is going to be harder to sell. This involves
things like having professional photos taken of your property, writing sales copy for the
listing to make your property sound enticing and make people want to live there, as well
as handling all the inquiries and follow ups that come with that online marketing.
You also need to know about signage. How can you create a sign, not just any sign but a
sign that is going to generate enquiries and lead to people visiting the open for inspections?
You are going to need to do follow-up calls as well so people come to the open for inspections,
you need to follow them up to get them to try and make an offer and see if they are
interested, etc. You need to hold open for inspections and know how to do them in such
a way that people want to buy the property. You need to be good at negotiating and I think
this is where some real estate agents really hold their own.
You also need to understand deal flow. How does the process of selling your property
actually works? You will be working with a solicitor yes, but how does the deal flow
happen, and as well what do you do with handling money and things like. Because in most circumstances
the real estate agent and solicitor will do with all the money and the offers and everything
themselves, you wouldn’t have to do with any of it at all. Therefore if you are going to
do it by yourself then you are going to need to know how to handle that.
You can see that there is a big list of items that you need to do. Are you willing to do
those things and do you think that you can do them well?
Small things can make a very big difference when it comes to selling your property and
this is where real estate agent can really add their value. I just want to say as a disclaimer
that I’m not a real estate agent; I don’t get commissions from real estate agents or
anything like that, so I’m not trying to recommend them or paint them in a positive light because
I get some kickback or something like that. I just really want to make you aware of what
is involved in your sale and what a real estate agent can do for you and then if you don’t
think that the real estate agents in your area are up to scratch then by all means sell
the property yourself. However, small things can make a very big
difference when it comes to selling your property. There are certain things like phrases people
use when making offers on a property. If someone comes and makes an offer and says, “I’d like
to make my first offer and it’s this amount.” Well, understanding that they are saying,
“I’d like to make an opening offer on my first offer.” That is a phrase that usually signifies
that this person is actually willing to spend more money and willing to negotiate and willing
to take a higher offer. If you therefore don’t understand that and many other phrases like
it, you could miss that and you could accept that first offer and missed out on thousands
of dollars. This recently happened to my mother-in-law where people made a first offer, however there
were multiple people interested in that property and this person ended up offering much more
to secure the property. There is also the best offer strategy that
real estate agents used when the market is hot and you have multiple buyers. That’s basically
going to each individual buyer and saying, “Look, there’s a lot of interest in this property
you need to submit your best offer and we will take that to the owner and then who ever
submits the best offer will get the property.” A little strategy like that can yield big
rewards when people desperately want the property that you are offering. You need to know whether
to go auction or whether to go private treaty. You need to know how to create urgency as
well and this can make a big difference in the sale price of your property. So these
little things can’t make a big difference. If you are not in a market that’s moving quickly
or if you are not in a market where your price could fluctuate significantly, like for example
in Sydney at the moment extremely hot market and therefore it’s very hard to determine
exactly what a property is worth because people are in a frenzy at the moment buying properties.
So in that sort of situation I think it would be ideal to hire a real estate agent who has
all these skills and who can get you the best price. But if your market is really stagnant,
it’s extremely obvious what your property is worth and you know it’s going to sell for
that but you are not going to get so much interest that it is going to sell for more,
well then maybe it’s better to sell it by yourself and to not use a real estate agent.
When deciding whether you should pay a real estate agent to sell your property or not
it is important to analyse what the real estate agent actually does and whether you can do
those things yourself and whether or not the small differences that a real estate agent
makes – understanding buyers, understanding the sales process, creating that urgency,
if those small differences are actually going to make a difference in your end price then
you might want to consider a real estate agent. If it’s not going to make a difference in
your end price and you are sure of that and you can do the work then it might be better
going and listing the property yourself. If you are selling your property and you want
to buy another property and you are interested in positive cash flow properties then you
can get my free report showing you real positive cash flow properties and you can learn how
to find positive cash flow properties. Just go to www.onproperty.com.au/free to check
out that offer by entering your email address over there.
Until tomorrow, remember stay positive! Should I Pay A Real Estate Agent To Sell My
Property (Ep250) Page 1 of 3

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