Commission for real estate agent?

R

RandomGRK

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Hi all

I'm selling a property and the agent want 8.5% commission.

I realise this is high and since I am giving him sole mandate I feel like this should be lower.

I'm hoping to sell for R700k but realistically I see me accepting an offer of R630k.

How do you work commission for cheaper properties such as mine?

If it were a R5m house I'd tell him to bugger off but what is the norm for properties similarly priced to mine?

First time doing this and so lost.
 
It is a bit high, but it leaves room for negotiation without touching your asking price.
 
What I would do is get a quote from an estate agent for a non-sole mandate and see what their benchmark rate is for that value property. This will then show you the ceiling of what the rate should be for an exclusive mandate - in other words, on no basis should the rate for the exclusive mandate exceed that of the non-exclusive mandate.
 
I remember an agent telling me once that they can go down to 4.5% or 5.5%. Either way, that commission is excessive IMHO.

Maybe chat to a few others and see. I'd personally opt for having it on an open mandate, and the first agent with a solid offer that is approved and goes through, gets the commission. Buts that's just me....
 
The other option that you could look at is to say to them, you are not willing to accept anything below Rx in your pocket, anything above that is a win for them and you... works for some agents...
 
What I have done is proposed to him a guaranteed amount in my pocket of R650k. Initially he valued my property between R680k to R720k.

I personally don't think he can get that but that's the deal I give him. If he can get about R700k, that gives him close to 8%.

If he cant get me R650k, no deal.

And yes, I wont go sole mandate.
 
Their commissions are completely negotiable, there is no standard. So you are free to negotiate to you heart's content.
 
I paid 6.5 % at Rawson which was "expensive" compared to the one agent outfits. I chose them since they dominate the area I was selling in. The place sold quick though so I was happy I went with them.
 
RandomGRK said:
What I have done is proposed to him a guaranteed amount in my pocket of R650k. Initially he valued my property between R680k to R720k.

I personally don't think he can get that but that's the deal I give him. If he can get about R700k, that gives him close to 8%.

If he cant get me R650k, no deal.

And yes, I wont go sole mandate.
Click to expand...

Another option is to agree a reduced rate to apply for the first 650k, and then to agree to the 8.5% rate to apply for anything above 650k - almost like an equity kicker.
 
They normally accept 5%, but will reluctantly go down to 4.5%
 
When we sell our other property in 4-5 years time, I plan to advertise on privateproperties.co.za and handle the sale myself. I don't see why I should pay exorbitant commission to agents at all, but to each his own. To OP, I wonder if you consider PP at all? Perhaps you think it is too much of a hassle/
 
Don't you just need to use a conveyance attorney to co-sign the paperwork? AFAIK an estate agent isn't needed, but lawyers get default property accreditation. Heard it on the radio.
 
surface said:
When we sell our other property in 4-5 years time, I plan to advertise on privateproperties.co.za and handle the sale myself. I don't see why I should pay exorbitant commission to agents at all, but to each his own. To OP, I wonder if you consider PP at all? Perhaps you think it is too much of a hassle/
Click to expand...

+1
 
If you have any property less than R2m, sell it privately.
 
I would but I am looking to sell quickly since I'm leaving SA.

I have 6 zillion things I am trying to sort out so hoping that the sale can come quicker and with as little admin as possible
 
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