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COMMISSION FACTS

Vendor Losses Versus Agent’s Losses

When selling through an agent what happens to their commission payable when you drop your price by thousands of dollars?

Let’s take an example of an elderly lady in a popular suburb.  The house is nearly new, 4 bedrooms, 2 bathrooms, situated on 2,000 square metres of land, a beautiful gardened yard and native trees, fully fenced, double lock up garage under the main roof and rainwater tanks.

vendor-versus-agent-losses

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Now, you would be forgiven if you questioned the agent’s abilities given the original listing price.  This agent has been around for about twenty years, was a partner agent Principal and now works for an agency that is one of the largest in this Queensland regional city.

This example is a common practice in regional Queensland where sales take longer than Brisbane and agents are prepared to ‘overstate’ the listing price of the property to ‘get’ the listing.  What about the emotional trauma for the vendor – and the financial implications?

Wouldn’t you rather go PRIVATE SALE?!!

Here are a few examples of home sale prices and agents’ commission (based on 3%):

home-sale-versus-agent-commissions

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