All Topics / Finance / Real estate agent fees, commissions etc?

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  • Profile photo of gammonbrusgammonbrus
    Member
    @gammonbrus
    Join Date: 2008
    Post Count: 96
    December 1, 2010 - 3:48 am

    Hi all,

    First of all I didnt know exactly where this should be posted, so hopefully this is the right forum.

    Can anyone tell me what are the general commission structure (say an average, as I’m sure it would vary greatly between companies) that real estate agents work on such as

    1. When selling a house for $400,000 what would you have to pay to the real estate agent in fees?

    2. If you are actually the selling agent working for a real estate company, what is your cut of the commission? I have heard that real estate agents don’t get paid at all and leave purely off commissions they make only when they sell a house. Is this true, I thought we had a minimal wage law etc.

    3. Is working in real estate such as a selling agent, a place where you can make really great money.

    And just for kicks, does anyone know any figures of commissions agents receive for big ticket houses such as $1million plus houses?

    Thanks heaps
    Joe

    Profile photo of onthemoneyonthemoney
    Member
    @onthemoney
    Join Date: 2010
    Post Count: 134
    December 1, 2010 - 6:32 am

    Hi Joe,

    Here’s a link to an Agent Fee Calculator that works on the Fair Trading formula for max comm…
    http://www.legalmart.com.au/calculators/QLD/conveyancing/sale.htm

    Generally If the purchase or sale price is less than $18 000, the commission is 5 per cent of the price.
    If the purchase or sale price is more than $18 000, the commission is $900 and 2.5 per cent of the part of the price that is more than $18 000.

    Here’s some other useful links related to Finance and Property
    http://www.wealthwithproperty.net/?mode=default&cmd=get&id=42

    Getting back yo your questions..
    1: Max comm on $400k is $10,450
    2: Generally a 60/40 arrangement
    3: Depends on the market if its a hot market then yes otherwise no and/or it depends on your skills

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856
    December 1, 2010 - 8:11 am

    Nsw/act are deregulated, agents charge as much as they can get away with, it varies dependent upon your market. There is no scale.

    Fully licensed Agents can work commission only or work on a ‘ledger’ ie get paid a retainer but this is deducted from any commissions earned.

    Profile photo of possumpalpossumpal
    Member
    @possumpal
    Join Date: 2006
    Post Count: 48
    December 1, 2010 - 8:22 am

    Joe

    Why imply that you want to know "just for kicks"?

    Why not just be honest and say that you are thinking of starting you own agency and want to know how much money you will make.

    Tim

    Profile photo of gammonbrusgammonbrus
    Member
    @gammonbrus
    Join Date: 2008
    Post Count: 96
    December 1, 2010 - 11:33 am

    Thanks for your answers guys, comprehensive and exactly what I was looking for so cheers.

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