Agents Costs? Does this sound reasonable?

[*Beema*]

I am selling my investment property, and my agents has quoted me the following for selling the house:

$2500 for all the advertising, which includes a sign board out the front (6 foot x 4 foot) $245, Major state Newspaper Sat/Sun for three weeks ($470 each week), Flyers to hand out for those who visit $210 for 100, incl full colour A4 photos and house plan, layout and printing), we also got "House of the Week" full page add last week in another newspaper for $350, and Real Estate.com $250.

If we sell earlier we don't pay for the other week or two in the Newspaper.

Plus

1.7% for selling

Does this sound reasonable? I have never sold a house before and this is the house I built when I first got a FT job permeanent job straight out of uni so a little bit sad to be selling

[~Kim~]

Our advertising fees were $2000 for all that, but we live in a country town too where the newspaper costs aren't very high.
1.7% sounds great though. Generally they are tiered but average we found was 3% or so.

[FabFiona]

I think they are about right. We paid around $2400 for a similar advertising package. In hindsight I would have bought a cheaper one, but too late now.

I can't remember exactly but I think our agents commission was around 2.5%

[Antheia]

Hmm that sounds really strange to me. When we sold our house in December last year the commission was 2% and that included all advertising, sign etc...

[nickle730]

Hmm that sounds really strange to me. When we sold our house in December last year the commission was 2% and that included all advertising, sign etc...

On a home which sells for $500K that 0.3% difference in commission is equal to $1500. Beema would pay $2500 for advertising but $1500 less in commission (assuming the house sold for $500K and the entire advertising budget was used) so the agent's offer is similar to yours Antheia.

Having said that, Beema I reckon the advertising budget is too generous. Most people look on the net these days if they are buying property. If you are in an area where the market moves quickly I would be tempted to skip the state newspapers, pay for the sign, the net and the local paper as well as the agents window (which should be free!). You need the flyers as well so that your buyer can take home pictures to remind themselves how lovely your house is and how they would like to pay TWICE the price you are hoping for!!

The commission sound good at 1.7%.... Good luck!!

[FabFiona]

Most people look on the net these days if they are buying property. If you are in an area where the market moves quickly I would be tempted to skip the state newspapers, pay for the sign, the net and the local paper as well as the agents window (which should be free!). You need the flyers as well so that your buyer can take home pictures to remind themselves how lovely your house is and how they would like to pay TWICE the price you are hoping for!!

Agreed. This is the part that I wished I'd skipped but bubs was with me when I was doing the paperwork so I wasn't really paying attention! Oooppsss!