Selling your property usually comes with the decision of deciding to use an agent or not. If you do use an agent, then you have to pay the agent’s commissions.
It is easy for you to believe agent’s fees are not negotiable, after all, agents usually determine how much they will charge. But this is not true. Agent’s fees are negotiable, and you will usually be able to get most agents to agree to a lower price than they initially quoted.
This article will explain how to negotiate with agents to get a better deal on commissions to be paid.
How to Negotiate: Things to Note
In negotiating with an agent, there are things you have to keep in mind. Doing that will give you a better perspective on what to expect and how to handle the negotiations.
1. Do Your Research
You have to know the market your locality operates, either it’s a seller’s market or a buyer’s market. In a seller’s market, properties available are low and there are lots of buyers. As a result, the prices of properties go up and sales are made pretty quickly.
In this scenario, it is quite easy to negotiate with your agent, as they know that they will get a large commission regardless of rate, and they will be more amenable towards lowering their rates.
On the other hand, in a buyer’s market, there are a lot of homes available but there aren’t many buyers. Sales will be difficult in this scenario, as buyers know they have options and the prices of listings will go down as a result. Real estate agents in this scenario might not want to lower their rates, as they will already be getting lower rates as a result of the prevailing dynamic of the market.
So, it is crucial that you know what kind of market your property is in, as this will inform your negotiation and help you have much higher chances of success on that front.
Before you get down to discussing fees, interview a wide range of agents. This is important as it would give you a wider pool from which to select an agent you want. A good rule of thumb to abide by here is to disregard agents who refuse to be interviewed.
Understand that you are well within your rights to interview agents, as you’re the one who’s bringing them business and they will be working for you, not the other way around.
As part of the interview, ensure you ask them how long they have been in business, how many homes or properties they’ve sold, etc. This will give you a gauge on their experience level and let you know how well you can trust their expertise.
Also let them know you’re interviewing other agents, as this will force them to get competitive and hopefully lower their rates.
3. Keep Your Nerve
When it comes down to business, the next thing is that you keep your nerve. Appearing frazzled and unsure won’t help your cause, and it will likely embolden the agent to refuse your attempts at negotiation and stand firm on their offer.
Make it clear that you feel your property deserves a lower commission, and give compelling reasons why.
4. Negotiate For Your Own Good
When negotiating real estate agent fees, remember that the aim is to know if there is a chance to pay a lesser fee for commissions, whilst still retaining the keen interest of the agent in your property. It will be of no use if you demand a reduction in commission to the point the agent no longer has any incentive to sell your property at its correct price. That would be a disaster.
You don’t have to pay real estate agents fees you think are exorbitant, despite your location. Real estate commission in QLD can be negotiated, just like in other major cities across Australia. The key is to ensure you do your research, so you’d have enough info to go forward.