The Internet has revolutionised the business model for many industries such as retail, banking and professional services by providing supply side efficiencies and reducing costs. How about real estate?

How much should you pay to sell your home? Real estate commission rates in New South Wales, including Sydney, are not set by law. This means you can negotiate with an agent about their sale commission rates.

Purchasers chase properties they desire, they do not chase agents. The Internet has revolutionised the sale and rental of properties allowing clients to look at properties from the comfort of their home before visiting a portfolio they have chosen.

The role of a good agent is to:

Give accurate advice regarding the market and likely selling price. A price point pitched too high can devastate a marketing campaign.

• Provide a unique sales and marketing strategy including accurate budget.
• Manage the efficient provision of marketing materials, including photography, copy, brochures, signboard, Internet, and editorials.
• Present the property in the best light, which can often include styling.
• Manage the sale process professionally, by appealing to the desires of prospective purchasers and responding quickly to the requirements and questions of interested parties.
• Negotiate with interested buyers.
• Provide feedback and communicate the campaign progress with the vendor.

All the above components are important, however the art of negotiation, particularly for high value properties, should command a premium fee component. A mediocre salesperson will negotiate a mediocre price and top salesperson will negotiate a top price. Negotiation is therefore the most important agent skill you need to ascertain when engaging an agent.

How do I engage the best agent?

• Research the agents in your area.
• Select and interview two or three agents.
• Ask open questions, particularly relating to negotiation successes.
• Ask for a unique sales strategy for your property.
• Most importantly, answer the question, can I trust this agent?

Having completed the agent assessment process you will be in a position to determine and negotiate the appropriate commission.  Be aware that the major sales agent franchisees pay a substantial percentage of their fee turnover to their head offices and are consequently constrained in their flexibility to negotiate fees according to the level of work and expertise required for an assignment.  Independent agents, have far greater capability to negotiate an appropriate figure.