Selling through a real estate agent? Talk to other agents first!

Most people who sell real estate do so using the services of a real estate agent.  For many of us, the buying and selling of real estate property is something that we do very few times; for that and other reasons, the process can be daunting.

This post is not another on “how to sell your house” or “… how to sell without an agent…” article; you find plenty of those elsewhere. 

I’m still consulted by seller clients who choose an agent at random and then don’t even consider speaking to more than one!

If you’re a seller, my advice simply is: speak to more than one agent!  At least two, preferably a few more.

Some years ago a client couple retained an agent to sell their home, agreeing to the agent’s commission of 6%!!  I asked why they hadn’t at least contacted another agent, if only to compare charges.  Their reply was that “…but he was so nice to us”!  At that time, other agents in that area were typically charging commission of around 2.5%.

More recently another seller client was quoted a commission charge of 4.1% plus GST!!  Unlike the other one, this client did talk to other agents and in the end, the first agent reduced his commission to 2.2% inclusive of GST.  The typical agents’ charge in this seller’s area is between 2 to 2.5% inclusive of GST.

Think about it.  On a $500,000 sale, the commission difference, coming straight out of the sellers’ pocket can be around $11,000 or more!

Obviously these are not common cases.  If you’re inexperienced or unsure, the best advice is that you first speak to your professional advisers.  As an absolute minimum, talk to more than just one agent, shop around, compare charges and sale methods, ask questions.  It’s only a small precaution when we’re talking of figures like $11,000.