When it comes to buying or selling property, estate agents play a crucial role in the process. However, not all estate agents are created equal. Commission is a sensitive topic in the real estate industry, as estate agents don’t have a fixed income and rely solely on commission. In this article, we will delve into the world of estate agents’ commission and what you should know when it comes to property sales and rentals.
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What is an estate agent’s sales commission and when is it payable?
Estate agents’ commission is negotiable and not prescribed by the (PPRA)Property Practitioners Regulatory Authority. Commission is earned once all conditions on the sales contract have been met. The conveyancer acts as the gatekeeper and will only pay out the commission to the estate agent after the property has been registered.
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What is the difference between sales and rental commission?
Rental commission is a monthly fee, usually between 10-12% + VAT of the monthly rental amount. Some estate agents also work for a placement fee, which is equal to the first month’s rental income. Sales commission, on the other hand, is a one-time fee paid on property registration.
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What is the average or going rate for estate agents’ commission?
Sellers can expect to pay between 5% and 7.5% + VAT of the selling price for commission. The commission rate varies between estate agencies, and the level of service offered also affects the commission rate. Estate agencies with lower commission rates (3-4%) may not provide as extensive a marketing plan as those with higher commission rates (5-7.5%).
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What should sellers know about estate agents’ commission when selling property?
Sellers should ensure they have a comprehensive marketing plan in place before contracting with an estate agent. This plan should include details on advertising, property portals, and other marketing efforts. The commission percentage should also be agreed upon and clearly outlined in the plan. When working with Keller Williams – Team Diamond League in the Pretoria Moot area, you can rest assured that you will receive a comprehensive marketing plan and the best possible commission rate.
Conclusion
Choosing the right estate agent is crucial when buying or selling property. Commission is an important aspect to consider, but it shouldn’t be the only factor. Keller Williams – Team Diamond League, a leading estate agency in the Pretoria Moot area, offers the best combination of commission and marketing services to ensure your property transaction is a success.