When appointing an estate agent to sell your property you will likely be faced with two options; payment as a tiered percentage or a flat fee real estate agent. It is wise to have an idea of which you would prefer prior to meeting with the agents as this can affect your decision making. Here we will outline each model to provide you with a better understanding of each.
Tiered Percentage vs Fixed Rate Real Estate
The two main fee structures that you will come across when searching for a real estate agent are fixed rate and tiered percentage. Each have advantages and disadvantages and it is important to remember that agents are often willing to negotiate their structure.
This fee structure is simple; homeowners pay a pre-agreed real estate agent flat fee, regardless of the final sale price of their property. The main advantage of this option is that you have certainty over the cost and often additional charges such as marketing plans, photography and advertisement can also be negotiated into the fee. This structure can sometimes be cheaper in the long run but homeowners have the fear of a lower sale price because the agent can push for a quicker sale.
Arguably the more common fee structure, the tiered percentage option means that the agent will receive commission as a percentage of the final sale price. This encourages real estate agents to sell the property for a higher price because they will achieve more commission. Often, with this option, the extra charges such as marketing, will not be included in the agreed percentage.
View Real Estate Agent Commissions and Fees in your Area with LocalAgentFinder!
At LocalAgentFinder, we believe in ensuring homeowners are fully informed and make decisions that are best suited to themselves and their property. We provide a wealth of information to ensure comparing and connecting with local real estate agents is quick, easy and stress-free.
Our data not only provides you with the average commissions and fees for your local area and Australia wide but we also give an overview of the rates for each individual agent. After choosing to connect with a real estate agent, this information is made accessible so you can head into the meeting with a clearer picture of potential costs and a better understanding of whether they are able to achieve your preferences and expectations.
Other information and statistics that is available for comparison includes;
- Performance data such as sales history, number of current listings, average sale price and more
- Agency introduction including an overview, office locations and marketing strategies
- Agent biography showing the size of their team, languages spoken and more
- Average days on market, average sale price and commission rates
Providing homeowners with the most comprehensive collection of data available online, connecting with suitable agents has never been easier.
LocalAgentFinder is Here to Help
Founded over 10 years ago and the leaders of our industry, there is a reason that so many homeowners use our services to help with selling their property. See how we can help you today.