Do you have a regulated fee or do you determine the rate of commission ? HOW MUCH ?

Asked by Wayne Auld, North Sydney Mon Mar 3, 2008

In Australia this depends upon which state you are working in, in New South Wales the fee is unregulated Agents usually set their fee depending upon office policy, competition and demand etc...but try to avoid discounting their fee to match a competitors lower fee and to make them look inferrior.

In Queensland however, the fee is regulated and set by the Real Estate Institute of Queensland and there is essentially no difference between Agents based on fee alone. Usually in Sydney Agents charge about 2% plus GST or 2.2%. I heard in the USA it's actually much higher, about 6% ! How do you get away with or justify charging a 6% fee for selling a house?

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Home Ferret, , Plano, TX
Mon Mar 3, 2008
We do not have a standard rate of commission. It is all up to the buyer and seller.
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Brendan Murp…, , Laramie, WY
Mon Mar 3, 2008
Actually Wayne, we have laws that say we cannot regulate fees. We have anti-trust laws in the US that make price fixing illegal to protect the public from such practices. I would also say it is a very touchy subject, I would not want to be near two brokers who are discussing what they charge as such a discussion among even 2 brokers could be considered "price fixing".

In answer to your question: I believe we all charge what we think we are worth!
When I give a presentation to a seller, I don't think about "justifying my price". Rather, I am so confident I am worth that commission that it is easy to ask for, and I expect they'll feel I'm worth every penny.

Hope that helps!

Brendan Murphy
Raving Real Estate
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