Is there such a thing as “Free Marketing” when selling real estate?
Since 2014 Real Estate commissions in Qld have been deregulated, that means that there is no longer a cap on the commission that the agent can charge for selling your home.
This can be a good thing as good agents can set fees according to their success rates, usually meaning if they have a proven track record and can sell your property at the best possible price, they can justify setting their fees accordingly.
The difference in your final selling price can far outweigh the difference in agent commissions and marketing fees – that’s because selling your home for a much higher price means more money in your pocket, even with a higher commission. Hence, it’s usually well worth the money to go with an agent who will work hard for you and has a proven sales record of delivering on promises. The onus will be on the agent, who seriously now needs to be able to demonstrate that they are a marketing and negotiation expert.
All agents don’t structure their fees the same way, and you may think you have chosen an agent who offers free marketing, but these will inevitably be absorbed into their selling costs. Think about it! If the agent can’t convince you to market your property in a professional and appropriate way, or provide you with a tailor made marketing plan to achieve the best possible result for you, then ask yourself if you have picked the best agent for the job.
Also remember, that there may be a conflict of interest if the agent claims there are no marketing fees, as they could now try to sell your property at a lower price, just to re-coup the marketing fees they have paid.
When choosing an agent, be sure to compare apples with apples and be clear if their commission includes all marketing costs or the marketing fees are a separate cost. Find out what fees are chargeable if the property doesn’t sell. Make sure you get all fees and costs in writing from the word go. That way you won’t be left high and dry when it comes to selling time.