Whenever you sell your property, you are required to give a certain percentage as commission to real estate agents. This rate differs from one property agent to the other. The good thing is that you can negotiate the fee to be charged once your property has been sold.
It is advisable that have knowledgeable on property valuation before you hand over you home to property agents. In case you do not know the appropriate fees and commission charged by estate agents, then you should not worry. This article gives you a guide the on the taxes and commissions that are associated with real estate property.
How much are the real estate fees?
Most real estate agents calculate their commission based on a percentage of the property’s selling price. There are just a few agents who have a fixed fee. The problem is that it is not easy to find such real estate agents. In essence, when your property is priced high; you will be charged a lower amount as commission.
On the other hand, those whose property is cheaply priced should be ready to part with a significant amount of commission. You should also be prepared to pay GST on the total fee. In case you have property worth $800,000, and the percentage fee is 2.5%, then you will pay $20,000.
What are the current fees for the property?
Before you decide to sell your property, it is advisable that you know the market price for such property. Knowing the current market price requires that you get knowledge on handling property agents. In 2014, real estate agents had the liberty to set their prices. It was because most of the states were deregulated. Thus, they based their fees on the demand for property, value for the property and their experience. Currently, the rate charged by the property agents range between 2 to 5 percent. This rate can reduce depending on how good you are at negotiating.
Can the rate be reduced?
Being charged a reduced property rate is possible. You can negotiate with the real estate agent to charge you a small interest rate. However, many factors will make them accept your plea.
For instance, the percentage will reduce if your property is going to sell at a high amount and if it is located in a lucrative area. In such cases, you can get away with paying reduced fee on your property. You can also look for a property agent who has the lowest fees.