There are many misunderstandings about the process of selling a property, and the cost involved is undoubtedly one of them. With this in mind, here's an outline of the different costs of selling your property:
1. AGENT'S COMMISSION
Once upon a time, the rate of commission payable when selling a property was set by legislation. Nowadays, however, an agent's commission is set on a property-by-property basis through a process of negotiation between the owner and the agent.
There are several ways this can be structured, including:
Ø A set figure, regardless of the result,
Ø A single percentage rate, so that the better the result, the more the agent receives,
Ø A combination of percentage rates, where a higher percentage is offered for a result above a set figure, (such as the reserve in the case of an auction).
Some of the factors that can influence the rate of commission can include the value of the property, the degree of difficulty of the task, the expectations of the vendor and the level of service they require. The commission is there to provide the agent with a reward for doing their job successfully, or an incentive for excellent performance. And remember, the commission is ONLY payable when a sale is negotiated at a figure that is acceptable to you as the vendor.
2. MARKETING COSTS
This is probably one of the most misunderstood elements of selling a property. Unfortunately, some sellers make the mistake of choosing whichever agent offers to market their property at the lowest cost, rather than the agent who can offer them the best value for their dollar whilst ensuring maximum exposure to the widest range of buyers. After all, the greater the number of buyers, the greater the result will normally be.
When it comes to the marketing of your own property, it is important to consider a number of different elements of the marketing mix, including:
Ø Sign Boards.
Ø Photographs, floorplans, sketch.
Ø Local Paper advertising.
Ø Video advertising.
Ø eMagazines and print magazines.
Ø The Internet.
Ø Window displays.
All of these can have an impact on the overall success of your marketing campaign. That is why it is important to seek the professional, experienced advice of your First National Real Estate Parramatta Consultant to discuss the most appropriate and cost effective way to market your property.
3. CONVEYANCING COSTS
Conveyancing costs relate to the cost of handling all the necessary legal requirements in transferring the property from your name to that of the buyers. These details are usually handled by a Solicitor or a Conveyancer on your behalf, who will charge you a fee for doing so. These fees can vary a great deal depending on who handles it for you and how complex the transaction is.
If you have a Solicitor or Conveyancer you have used before, you should be able to obtain a quote for their services over the telephone. Some of the information they may find helpful will include:
Ø The type of title you are transferring, (if you know it),
Ø The time frame involved,
Ø Your planned method of sale,
Ø And whether you want them to handle your purchase as well.
Remember, if you do not know anyone who could handle these matters for you, your First National Real Estate Parramatta Consultant will be more than happy to refer you to an experienced and caring professional who can supply you with an obligation-free quote.