So we are trying to ready our house for sale. Had an appraisal from the agent that sold me the house who said as is to expect $400,000 or if we do things like paint outside, redo gardens then $450,000 (inside has been renod) which would be a spend of about $10,000. However we have a shed not approved so also need to get that approved either way.
Then DH talks to the people at work and there is someone willing to buy it for $350,000 as is as a private sale, no approvals required, no work, just get papers drawn up and it's done.
Now I don't think I'm willing to lose that much, but then I'm not sure how much we would pay in agent fees, council fees for the shed approval and then also the extra work for outside. The mortgage is only $250,000 so it would be a profit of $100,000 in 4 years.
So does anyone know what sort of fees I would be looking at and if it were you, what would you do?
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07-06-2013 15:51 #1
Cost of selling through an agent
07-06-2013 16:00 #2Senior Member
- Join Date
- Jan 2009
What state are you in? In Queensland, most agents charge the maximum percentage they are allowed to (5% of first $18k, 2.5% of balance, plus their outlays, plus GST), so under $15k. There are some agents who discount commission though.
I wouldn't sell for $350k, given the other information you've presented.
07-06-2013 16:04 #3
Agents charge different amounts but usually around 2.5-3 % of the sale price. Sometimes you can negotiate it down a little.
Ring 3 agents and get valuations. Some value higher to get you in then try to convince you to take a lower offer. A few thousand dollars less in sale price may make a huge difference to you but that only equals a few hundred decrease in commission so no big deal to them.
Hope that makes sense.
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07-06-2013 16:10 #4
No I wouldn't take the low offer of a private sale. Firstly commission is usually around 2.5% so you would be sacrificing a lot of profit and a private sale is risky and stressful. It's much better to have an agent who deals with the solicitors and paperwork and all is done formally. Best of luck x
07-06-2013 16:15 #5
My fees on $400,000 at 2.5% would be $10,000 plus advertising about $2500 - so you would be saving $12,500 in agents fees plus say the $10,000-$12,000 to do the work needed so roughly $25,000 in total
my fear is though the offer is $50,000 under what the agent said so you in theory are underselling by possibly $25,000) my advice would be to either try negotiate the buyer you have up to $375,000 ( which would be what you would get net $400,000) or if you already have a buyer keen at $350 without even trying and fixing it up I would assume there are more buyers out there!
Also what someone says they will do ( not worry about council approval etc) may change once their solicitor gets involved so be wary of that as well
Last edited by Elijahs Mum; 07-06-2013 at 16:18.
07-06-2013 16:17 #6
Great. Thanks for all of your replies, it's confirmed what I thought, just wasn't sure if I was being silly. If we were to do it, we would get a solicitor to draft documents so we were protected.
I'm in WA but I'm sure it's fairly similar throughout the states.
Just remembered we have a friend of a friend who is an agent so we are going to get in contact with her and get her to do an appraisal and go from there.
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07-06-2013 16:29 #7
07-06-2013 16:39 #8
Council approval for a shed is only $600 in Qld so I wouldn't factor that in. You can also sell/buy without it without an issue.
07-06-2013 19:14 #9
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07-06-2013 19:15 #10
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