Agent's fee open to negotiation
The Age
Saturday March 19, 2011
IS THERE a standard agent's commission? Most real-estate agents charge a success-based commission for their services,which means they must sell your house in accordance with the contract or sales authority or you don't pay.Real estate is one of the few professions that offer consumers such a deal. As a result, every now and again the REIV is asked to clarify what a "standard" commission is for selling a home in Victoria.Prospective sellers need to be clear that under Victoria law, all commissions are negotiable between the real estate agent and the vendor. There is no standard commission. The REIV is also not allowed to suggest what a standard commission might be; to do so would contravene federal consumer laws.Some organisations may cite average commissions or suggest what is often charged but that should not be taken as a guide, as there is no place where all commission rates are stored for later review or comparison.Prospective sellers are advised to seek quotes from at least three REIV members and compare them on the entire service that they offer.Surveys conducted on behalf of the REIV have found that prospective sellers choose their selling agent based on more than commission or the estimated selling price. An agent's knowledge of the local market is important, as is their track record and, critically, the outline of how they will sell your home.
© 2011 The Age
