How All-inclusive Agency Fee Saves Vendors Thousands of Dollars?
Property selling costs, such as agent and marketing fees, have traditionally been inevitable costs that vendors pay when they sell their property. The percentage of selling costs against the property sale price has not changed much but as property prices increase, so do the selling costs that are taken out of vendor’s pocket. This is because costs such as real estate agency fee are often calculated based on a percentage of property final sale price.
To put this in perspective, consider a typical house in popular Sydney’s upper north shore suburbs that is priced at $2,000,000. The two percent agency fee on such a property for a private treaty sale (auction sale fees are often considerably higher) will cost the vendor $40,000 on the top of upfront costs such as marketing, floor plan design, photography and videography that can easily come to $5,000 to $10,000; $45,000 to $50,000 does not sound cheap to sell a property at all, does it.
The increases in agent fees were naturally welcomed by real estates initially although it is clearly not fair nor justified. This is because there is not much difference in the effort they need to put in to sell a property in comparison to three years ago. More importantly, higher and unreasonable agency fees can potentially put back vendors to use real estate agents’ services and encourage them to look into alternate options, regardless of their effectiveness, that could impact and disrupt the whole industry. This is why some of the real estate agencies started to think more strategically and offer better rates.
Ivy Plus Real Estate, as a real estate agency that has a special commitment to offering higher quality services at a fair and reasonable cost, has also considered the matter of increasing agency fees and has come up with twofold solution. Ivy Plus Real Estate discounted its agency fees to be the best and most reasonable rate in the market; additionally, they also introduced ‘all-inclusive rates’ to their clients to ensure that vendors that sell their property via Ivy Plus Real Estate are reimbursed for all the typical upfront costs they incur, i.e. marketing, at the time of settlement.
With market-competitive and ‘all-inclusive’ agency fee structure that is offered by Ivy Plus Real Estate, vendors should expect to get around 30% off their typical property selling costs. This is irrespective of their final property sale price and the sale method, private treaty or auction. As a result, selling the $2,000,000 property in the example we discussed above via Ivy Plus Real Estate will put $17,000 back into vendor’s pocket!