Rosebud is the ideal mix of shopper’s and nature’s paradise. Nothing beats a two-kilometre stretch of retail shops facing a tranquil ocean, while Mature Banksia trees offer a canopy to families frolicking on the sandy beach during summer. But while the beach is the focal point of this coastal town, there’s plenty to do in the neighbourhood, which is why houses for sale in Rosebud don’t stay on the market for too long.
However, when you have houses for sale in Rosebud and looking to hire a realtor, the issue of agent commission will always be the elephant in the room.
For instance, some homeowners are wary about contacting an agent because they do not want to pay the commission. But they end up settling for much less, especially if their property has been on the market for quite some time.
To clear some misconceptions about agent commission, here are some of the things you must know:
- How Much Should You Pay?
Agent commission across Australia varies depending on several factors. For instance, the price of the property and the location of your home matter a lot in determining the percentage that goes to your realtor. However, expect to pay between 1.6% and 4% of the total sales price of the real estate in Rosebud.
The seller will shoulder the commission fee, including the buyer’s agent and the listing agent. In a seller’s market such as the real estate in Rosebud, agents do not have to charge a lot for their commission since the houses are already selling high and fast.
- Fees Different from Commission
You might wonder when the agent will ask you for fees when you have already agreed to the commission. Fees typical cover advertising or marketing should you choose to do so. The amount will depend on how sophisticated your campaign is. For instance, you want to distribute flyers, boost a social media post, or take high-res, professional photos. However, the math is not that complicated since agents usually incorporate the ad fees into their total commission.
Investing in fees usually yields benefits since you can increase your reach exponentially. However, as to the cost of your marketing fees, it’s recommended that you stay within the range of between 0.5% and 1% of the total value of the property.
- Should You Pay Upfront?
You do not have to pay the agent commission immediately since you will settle the amount at closing. Until then, let the agent do their magic as they search for buyers that will meet your asking price for your real property in Rosebud.
- Isn’t the commission percentage too high?
You should know that the listing agents will not keep all the money they earn from the commission for houses for sale in Rosebud. They also have to invest some of the costs on the property listing, hiring a professional photographer, staging your home for the open house, and offline marketing. So again, you will be billed for additional fees to ensure a comprehensive advertising campaign.
Finally, the listing agent will also share the commission with the buyer’s agent, who introduces the prospective client who will purchase the property.
- Tiered vs Fixed Agent Commission
A fixed commission entails asking for a base rate for the total sale price for houses for sale in Rosebud. For instance, if the commission in Victoria is 2% and your property sold for $1 million, the agent will get $20,000 from the sale.
The agent will ask for a base amount within a specific bracket for the tiered model. For example, if the agent closes the sale at $700,000, they will only get 2%. But if they close the deal at $1 million, they will get 5%.
As a result, the agent will be more motivated to get the best price for houses for sale in Rosebud to maximise their earnings.
Should You Be Worried About Agent Commission?
As to the question of whether or not you can negotiate the agent commission, there’s no harm in bargaining. However, the commission is computed according to the prevailing market forces, so don’t be surprised if they say no.
Consider this: if the agent commission is too low, they might not be motivated to get you the higher price for your real estate in Rosebud.
Ultimately, if you can find an equation that satisfies everyone, you do not have to worry about the agent commission. If you have a piece of real estate in Rosebud, it does not matter how much the realtor earns from the sale.
What’s more important is how much you net from the home purchase. If you set the price at $1 million, does it matter if the agent gets their commission when you still hit your financial goals anyway? Finally, an experienced realtor will find a happy compromise so that everyone will walk away with smiles on their faces.
Hi, I am Aria. I am a passionate blogger. Blogging is my profession. I love to write articles on several topics. Keep up the good work and Have a great day!
