Hi, l live in a rural area and thinking of selling my house, as it's a rural area it won't be an auction and there's not huge demand like in a city.
l was wondering it l set a minimum price l am willing to sell and if after a period of time say a year no one offers the minimum price and l decide to take my house off the market, what do l have to pay the real estate agent, for example do l have to pay the real estate agent the advertising fees, what's the average cost of that?
You should actually go into or call your local agency and have a chat to them.
Amazing how many people on this site seem so unable to actually speak to people to understand, discuss, and negotiate what is/isn't possible.
That said, generally you will be required to pay for all out of pocket expenses including advertising, photography, styling, listing fees on relevant websites, etc.
Similarly, sale contracts typically don't require you to pay for other costs (i.e. the agent's time) unless the property is sold within the agreed timeframe (notwithstanding some of the catches mentioned by others below).
Depends on the contract with the REA. If you tell them that’s your plan, they may charge you a base fee rather than commission.
Typically they just take a commission of the sale. So you only pay once it’s sold.
However, the advertising fees are what you will need to pay regardless. This includes things like advertising online (realestate/domain), the board at your property, photos, floorplans, writing the boring words that they use to describe your property.
Advertising can get hefty. Realestate/domain have set fees based on suburbs, so you won’t get variability in this one from different agents. The other items may vary though.
The only way to avoid advertising is to list your place off market. This means the agents will have to do more networking with prospective buyers, so they may charge a flat fee on top of the commission to do this. They may still recommend photos+floorplan and advertise it on their own website too.
Definitely go get some quotes. It’s the only way you’ll know.
what do l have to pay the real estate agent
Whatever you agree to in the contract.
A fairly barebones advertising + RE photography cost will likely be $2-$4k, varying based on location, etc.
Typically if an agent does not sell, you owe nothing other than these agreed costs. But as another poster mentions you need to be VERY careful of clauses of exclusivity, introducing buyers to property etc. So for example if you listed with Agent A and it did not sell, you list with Agent B after the exclusivity expires but if Agent B sells to a buyer who Agent A introduced to the property, Agent A will be entitled to commission. Agent B isn't going to share his/hers, so this comes out of your pocket.
If you delist the house from the market entirely and don't sell if Agent A fails, then this isn't an issue.
You'll be up for marketing costs and some labour.
Have you considered selling it yourself? If you have a firm price in mind and not expecting a bidding war, it can work.
We sold a city house with a three sentence ad in the local school newsletter. If you're in a tourist area, a sign and a note in the pub might find a buyer. It worked for one neighbour.
it won't be an auction…l set a minimum price l am willing to sell…
If it isn't an auction, the seller has to state a price (unless you go down the path of Expressions of Interest).
Depends on the state I think, but even auctions have to have a broad price guide.
We are paying 2.5% for rural sw Vic
No idea if that's competitive. We Don't have multiple agents to choose between
What you should read up on is 'Exclusive Agency Period'
In a rural area you may want to give them say 120 or 180 days (all negotiable).
If they sell the property within period, you pay them a fee.
After X days and it fails to sell, then you are free to walk away or sign a new contract with the agent or new agent.
In terms of advertising costs, that's a separate matter altogether. Cost is also negotiable.
Note- If you get the agent to arrange the photos, you may not own the photos, and therefore can't use the same photos with another agent. Again, read the contact on the photos/marketing.
how rural are you talking? whats the market like where you are? houses in rural NSW where i was living a year ago were selling super fast, and they are still going very quickly where I am now in semi-rural SA.
realise that way out in the sticks - ie coober pedy etc… places are harder to sell, but otherwise surprisingly few houses sitting on the market where i have looked.
hi l am in the warrnambool district area but on a small acerage outside the city
Find a local agent. Talk to them. I’d you think the price or conditions are unreasonable, try another one.
Everyone seller has a minimum price. How low that 'minimum' is will depend on how desperate you are to sell.
You should actually go into or call your local agency and have a chat to them. They can tell you exactly how much they charge and explain the terms of their contracts. They may or may not have exclusivity clauses.