Finding a top agent for a great price
Costs relating to your choice of real estate agent fall into several buckets. There are direct costs such as marketing costs and commission to pay once the property sells. There are also potential indirect costs such as selling below market value and a long sales period.
These indirect costs are less visible and harder to quantify, but they can be significant. Our analysis shows that the top agents sell for $19,000 more than the average agent. The stakes are higher the more your property is worth.
Accordingly, it is important to consider the indirect costs when comparing proposals from prospective agents.
To minimise the risk of high indirect costs it's best to approach the agent selection process in the following order:
- Identify the top performing local real estate agents.
- Shortlist two or three agents and request an appraisal.
- Negotiate a competitive fee.
In contrast, if your first step is to shortlist agents based on which agents charge lower fees, there is a greater risk you will hire a poor agent and you may not realise the full potential value of your property. Saving $5,000 on agent fees is not worth it if you sell for $19,000 below market value. A long sales process can also disrupt your plans or increase your financing costs if you have already purchased another property.
When you request a quote through AgentIQ, the agents know you are comparing their proposal with the best local agents. You'll receive a competitive quote from a proven top performer in your neighbourhood.