Are you considering contacting a Reservoir real estate agency but are too anxious about the charges? This short article is for you. You generally don’t worry about the cost of contacting if you are buying a house. The home seller shoulders the charges, so you have nothing to lose when talking to an agent to guide you through the process.
Fees for a Reservoir Real Estate Agency
You are looking at three payment methods depending on the real estate company.
- Commission — The commission refers to a percentage fee of the amount of the property’s selling price. The rate depends on your location and the market conditions. For instance, the charges range between 1.5% and 5%. Agents in Queensland or the Australian Capital Territory often charge more than those in Victoria or New South Wales.
- Flat rate — Another option is a flat rate, although this method is more uncommon. As the name suggests, you agree on a fixed price for the agent’s services to help close houses for sale at Reservoir. The disadvantage is that you are expected to assist in organizing open houses and contacting purchasers. Because the agent is not as eager to locate the best bargain, you may not receive the most value for your money.
- Tiered rates — Also called the sliding scale method, the Reservoir real estate agency would charge according to the value of the selling price. For instance, they will ask for 1% for houses up to $600,000 or 3-4% for properties exceeding the one-million mark. Another option is charging a flat rate of 1% of up to $500,000. After which, the charges go up to 2% or 2.5% when they push past that touchstone.
The advantage of both the percentage and tiered rates is that they incentivize the real estate agency in Reservoir to negotiate for the highest price for your home. So, in the end, you will benefit from walking away with more money.
Factors Affecting the Real Estate Agent’s Charges
However, several factors will affect the cost of hiring a Reservoir’s real estate agency.
The location is one of the most significant indicators of the asking price. For instance, in Melbourne, the rates are between 1.6% and 3%. But they could still come down depending on the neighbourhood. But, of course, properties in the central business district typically command the highest percentages.
Another factor is the market status. For example, hot conditions usually attract more agents, which saturate the market and affect the rates. Cold conditions, meanwhile, will result in a drop in the agent population because the number of houses for sale dips.
Also, you may pay more if you agree to buy advertisement spots on TV, radio, newspapers, or digital platforms.
You have options when you hire a real estate agent to sell your house in Reservoir or any other suburb. Home sellers should also not fret because a Reservoir real estate agency will not impact their asking price too much. In most studies, owners typically hit their ceiling price, if not more, when they contact a certified realtor than try to sell their house on their own.