Lately, many people frown on having to pay estate agents commission. This is partly because of uneducated agents who were unleashed on the marketplace to offer a shocking service and because of advertising done by certain property portals, advocating that property sales is a "DIY" job for the masses.
This kind of thinking is problematic within it self and often leads to disaster. Imagine taking a stance of never going to the dentist or doctor and applying self-medication. Those results are interesting. Perhaps a legal matter, you could do research on the internet, speak to a call center agent at a subscription legal service and then show up in court to defend your own case. How would that turn out? We consult with professionals because they (hopefully) have years of experience and knowledge. We know that they are in a position to assist us in a professional manner and know that we will not be subject to any pitfalls under their guidance.
Let's get relevant. Ever heard of the man who signed an offer to purchase to sell his house and then agreed to let the purchaser move in and pay occupational rent prior to his bond being approved? This "purchaser" decided not to apply for his bond or pay occupational rent. He was a professional squatter and the property owner had to incur great expense to have him evicted. This is one of countless examples where an experienced estate agent could have saved the day.
Some people feel that estate agents commission is too high. Larger franchises usually change 7.5% of the purchase price, while independent agencies vary anywhere between 3% - 6%. When an agent works for a franchise, they must share their commission with the agency and if not for the high percentage, would not earn enough money to survive. Independent agents do not have this expense and can therefore afford to lower their commissions. Generally speaking, estate agents do not make many sales in a month. Between 1 - 2 sales seems to be the average and sometimes. Many months can pass without making any sales. Although these commissions can seem high, when you average it out over 12 months, it is little more than an average salary.
This kind of thinking is problematic within it self and often leads to disaster. Imagine taking a stance of never going to the dentist or doctor and applying self-medication. Those results are interesting. Perhaps a legal matter, you could do research on the internet, speak to a call center agent at a subscription legal service and then show up in court to defend your own case. How would that turn out? We consult with professionals because they (hopefully) have years of experience and knowledge. We know that they are in a position to assist us in a professional manner and know that we will not be subject to any pitfalls under their guidance.
Let's get relevant. Ever heard of the man who signed an offer to purchase to sell his house and then agreed to let the purchaser move in and pay occupational rent prior to his bond being approved? This "purchaser" decided not to apply for his bond or pay occupational rent. He was a professional squatter and the property owner had to incur great expense to have him evicted. This is one of countless examples where an experienced estate agent could have saved the day.
Some people feel that estate agents commission is too high. Larger franchises usually change 7.5% of the purchase price, while independent agencies vary anywhere between 3% - 6%. When an agent works for a franchise, they must share their commission with the agency and if not for the high percentage, would not earn enough money to survive. Independent agents do not have this expense and can therefore afford to lower their commissions. Generally speaking, estate agents do not make many sales in a month. Between 1 - 2 sales seems to be the average and sometimes. Many months can pass without making any sales. Although these commissions can seem high, when you average it out over 12 months, it is little more than an average salary.
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