Simple Tips on Shortlisting Land Agents

When it comes to choosing real estate agents in Victoria, there can be a lot to consider. Your land can be your largest asset and for this reason, it is crucial for you to choose a real estate agent who is able to understand your requirements, and represent you and your property. Top real estate agents will be those who know the area well like the back of their hands.

They will be the ones who are aware of the situations in the real estate market and know about the recently sold properties and all other little things. In short, they will be highly experienced.

It is not just about general market knowledge, but also about the specific details of the property, and the condition of the local market.

The real estate agent you choose should be a local expert with proven track history, the right credentials, and expertise to match the property you are looking forward to selling. Despite all these points, one of the largest points for sellers is that there is going to be an overall cost of the service. Paying a real estate agent is also an important part of the process. So, before you take any decision, you should know how everything is going to add up. Also, how can you get the best value out of your partnership with the real estate agent.

When it comes to real estate agents, there are two main costs that should be considered – fees, and commission.
Fees are there to cover the cost of marketing as well as advertising. It is usually a set payment to cover everything from high-resolution photos, social media campaigns, flyers, property listings, and even drone flyovers.

Fees can help you in setting everything from a basic listing to comprehensive campaigns.

Despite the price tag, a good real estate campaign will be able to reach more people and create more buzz around the land. Therefore, it is generally recommended that a seller spends somewhere between 0.5% and 1% of the total property value on its marketing.

On the other hand, if we talk about real estate agent’s commissions, it will be a different thing. The commission is calculated as a percentage of the total cost of the selling price and what a real estate agent is paid for selling the land or property.

The commission rates vary from state to state, suburb to suburb. However, as a general rule of thumb, regional areas tend to have slightly higher rates because of fewer real estate agents and less competition. Fewer customers also mean selling a property that may take longer than expected in a saturated urban market.

Let us understand it with an example:

Across Australia, the lowest commission you are likely to know is about 1.6%. The absolute highest might be about 4% – 5%. The average rate for Victoria is said to be about 2.05%. (Rates may have changed over time)

Despite all this, not all real estate agents structure their fees in a similar way. It is quite common for real estate agents to also include marketing as well as advertising fees in the commission itself.

Another variation that you might come across –

  • Tiered Commission
  • Sliding Scale Commission

These commissions reward real estate agents for securing higher sales prices. Also, it is often a great way to motivate your real estate agent to work hard for your land/property.

So, there are different commission structures and options from which you can choose – all for good reasons. Commission structures should be flexible and should allow room for real estate agents and vendors to negotiate.

In order to improve your chances of negotiation, it is crucial for you to find a real estate agent who can be trusted and can also make you feel comfortable.

Real Estate Agents in Victoria

Real Estate Agents in Victoria

There is no dearth of real estate agents in Victoria. If you are looking for one, contact Raine and Horne Land Victoria. 

Melbourne is said to have the most dynamic and costly real estate market. Around saturated real estate markets, you will find lower commission rates due to higher levels of competition between the agents. If you have queries or doubts reach out to us. Our team of experts will guide you and put you on the right path to buying and selling acreage.

Taking all things into consideration, the average real estate agent’s commission in Victoria is 2.05%. However, the area is not the only factor that determines commission.

If a real estate agent is experienced and has a proven track record, they might charge more for their services. All the above skills in a real estate agent will give them an ability to achieve a higher sales price.

“As a real estate company, our goal is to provide a common forum where customers and real estate/ land agents can both benefit from our services.”

Negotiating Fees with Real Estate Agents

Negotiating Fees with Real Estate Agents

So, after you shortlist two or three real estate agents, the next step should be negotiating fees. This you can do by conducting face-to-face interviews. Through these you will be able to find out more about the real estate agents, their working style, fees, etc.

It might seem a daunting task but this step plays a crucial role in finding the best for yourself.

Here are some tips for negotiating fees and commission while you choose the best real estate agent.

  • Ask real estate agents about their commission rate and the structure. This will help you in comparing fees and services against other real estate agents in the market.
  • Do not expect a lot of wiggle room when it comes to negotiating commission rates. A competitive and deserving sales price requires a lot of work in order to run comprehensive marketing campaigns, carry out buyer’s follow-up activities, etc.
  • While it is important for you to find a real estate agent whose commission rate and fees fit within the budget, it would be a good idea to let go of the agents who promise you the lowest commission rate.
  • It will be a great idea to factor marketing and advertising costs into your budget. Being prepared ahead will give you a sigh of relief.
  • Make sure you get everything in writing. A reference point will make you look back on the terms and conditions of the agreement. It will also prevent you from being left high and dry, especially when it comes to selling the land or the property.

The entire blog will come in handy when you are looking forward to hiring real estate agents. If not, you can anytime contact Raine and Horne Land Victoria experts. We are here to serve you.