Cost of Selling in a Hot Market

As the local property market continues its hot streak, one of the more common real estate-related search terms is ‘cost of selling my house’. Would-be sellers are understandably looking for comparative guidance as to the current cost of agency services given homes appear to be selling in a New York minute.

Property listings continue to track well below the long-term average across Perth with about 3,250 properties available for sale on reiwa.com, down from around 5,500 a year ago. By contrast, at the end of March 2019, there were close to 14,000 listings. When stock levels fall, competition amongst agents increases and downward pressure on commissions often results with keen agents offering lower fees to secure listings.

ought to include an opinion of market price

The cost of a proper real estate service is relatively substantial in dollar terms albeit small in terms of percentage of the selling outcome. Often, would-be sellers sometimes begin their search for the right agent based solely on this fee. Occasionally, before introductions are made and names exchanged, the seller asks, “How much to sell my house?” This is a poorly timed question.

Instead, intending sellers ought to contact prominent agents active in their area and ask for a comprehensive market evaluation which, when completed, ought to include an opinion of market price, comprehensive details of what services the agency offers, a marketing and sales strategy and a fee proposal. Comparing three agencies ought to be sufficient.

When negotiating a selling fee, choose your preferred agent first. That way, your decision to choose an agent is based on your impressions of their professionalism, conduct, experience, marketing plan and abilities. It is a clichéd parallel perhaps, but you wouldn’t choose the cheapest brain surgeon if you knew them to not be as proficient as one marginally more expensive. The outcome of buying decisions based on cost alone is usually a poor one; a result equal to its value – low. Choosing the cheapest agent usually results in poor communication, insipid service, bland marketing and a lower selling price.

As average days-on-market decline to 9 days, sellers sometimes feel short-changed when their agent presents a strong offer within the first few days of listing. The alternative is, of course, to endure weeks of home opens and risk selling for less in a bizarre effort to be satisfied that your agent has worked for their commission. The timing of the sale is irrelevant if the outcome meets your expectations.

Remember, the agent’s job is to achieve a sale in the shortest possible time for the highest price the market will bear, and an attractive remuneration is a powerful incentive to maintain your agent’s commitment to this task.