|
Estate Agents Commission - Why should I pay it?
|
Posted On :
Jul-24-2010
| seen (459) times |
Article Word Count :
498
|
|
Lately, many people frown on having to pay estate agents commission. This is partly because of uneducated agents who were unleashed on the marketplace to offer a shocking service and because of advertising done by certain property portals, advocating that property sales is a "DIY" job for the masses.
|
Lately, many people frown on having to pay estate agents commission. This is partly because of uneducated agents who were unleashed on the marketplace to offer a shocking service and because of advertising done by certain property portals, advocating that property sales is a "DIY" job for the masses.
This kind of thinking is problematic within it self and often leads to disaster. Imagine taking a stance of never going to the dentist or doctor and applying self-medication. Those results are interesting. Perhaps a legal matter, you could do research on the internet, speak to a call centre agent at a subscription legal service and then show up in court to defend your own case. How would that turn out? We consult with professionals because they (hopefully) have years of experience and knowledge. We know that they are in a position to assist us in a professional manner and know that we will not be subject to any pitfalls under their guidance.
Let's get relevant. Ever heard of the man who signed an offer to purchase to sell his house and then agreed to let the purchaser move in and pay occupational rent prior to his bond being approved? This "purchaser" decided not to apply for his bond or pay occupational rent. He was a professional squatter and the property owner had to incur great expense to have him evicted. This is one of countless examples where an experienced estate agent could have saved the day.
Some people feel that estate agents commission is too high. Larger franchises usually change 7.5% of the purchase price, while independent agencies vary anywhere between 3% - 6%. When an agent works for a franchise, they must share their commission with the agency and if not for the high percentage, would not earn enough money to survive. Independent agents do not have this expense and can therefore afford to lower their commissions. Generally speaking, estate agents do not make many sales in a month. Between 1 - 2 sales seems to be the average and sometimes. Many months can pass without making any sales. Although these commissions can seem high, when you average it out over 12 months, it is little more than an average salary.
Please remember that estate agents are real people with real families and real monthly expenses. Do not ever attempt to get out of paying commission when it has been earned by an agent. I am sure you can imagine what it would be like if your employer approached you on the 20th of the month and informed you that your salary won't be paid. Think about what you would do in this situation and if you can bear doing it to anyone else?
In conclusion, if you do use an estate agent to assist you to sell your property, ensure that they are qualified and experienced (as you would a doctor). Use their expertise to your benefit and always pay what is due.
|
|
Article Source :
http://www.articleseen.com/Article_Estate Agents Commission - Why should I pay it?_26806.aspx
|
Author Resource :
Courtnall Machanick is a real estate professional with 10 years of experience in the South African residential property market. He owns Chilli Property, a real estate firm for new developed houses in Midrand.
|
Keywords :
estate agent commisions, real estate commission,
Category :
Finance
:
Real Estate
|
|
|
|