Real estate agents get paid in commission. This is the sum of money you pay the agent to sell your property. So, how much do agents make? Commission rates can vary from suburb to suburb, as well as between real estate agents within your suburb. We’ll cover average commission rates below.
While the above notion of commission is straightforward, when selling something as valuable as your property, it’s important to ask more questions. Why is commission the appropriate payment method for your real estate agent? How much commission is normal for your property value? How will I know what is considered fair commission? These are all valid questions and it’s a good idea to consider them before you begin the process of selling your property.
Commission is the standard based sales method used historically in real estate. Selling a property is not like any other sale you will ever make, both in monetary value and in the nature of the product – you are essentially selling someone brand new roots to lay the foundations of the next chapter in their life. It takes a strong skillet to negotiate the best possible price on your property and this skill set is developed through a real estate agent’s experience, sound knowledge of the market and passion for the industry.
An agent’s commission is usually anywhere between 1% and 5% of your overall property sale price and of course, while commission is an important factor when considering your choice of agent, it is certainly not the only factor. Commission rates are merely a small piece of the bigger real estate puzzle. A few other important factors to consider when choosing an agent are things like the agent’s experience, success rate, negotiation skills and their strategic approach to marketing in the digital age. It’s a good idea to consider these factors on top of commission rates