Video: About real estate sales agent commissions

First, I’d like to stress that not all agents and their teams are equal in skill and experience. Many inexperienced agents reduce their commissions when they lack these qualities. You might think you’re paying less, but you could lose money on the deal because the agent lacks strong negotiation skills or isn’t familiar with the area. 

As agents, we earn commission from coordinating all aspects of the sale, from advice on how to prepare your home for sale, project managing any changes that need to be made to recommending and managing the marketing campaign. 

We manage and conduct open homes as well as talking to buyers providing them relevant information during the sale and negotiating the price and terms of your sale with buyers. 

Importantly, an experienced agent will know how to price your home correctly, carefully analysing everything from the number of bedrooms and land size to the overall condition and the street address. What you don’t want is your house sitting on the market for months because it’s priced incorrectly. Buyers get nervous when they see the same property advertised for an extended period of time. 

Experienced agents have sold successfully through all market cycles. They have strong negotiating skills, ensuring that all parties are satisfied with the result and achieving the highest price possible for your property. When your home sells – and all homes will sell at the right price – the commission is paid to your agent for the service they provided throughout the campaign. If the house doesn’t sell, the agent doesn’t get paid. 

The good news is you don’t pay any commission until settlement occurs, which is usually 42 days after you sign a contract for the sale of your home. 

If you would like to discuss your options, please give me a call.