Why Pay Agents Commission?
Lately, many people frown on having to pay estate agents commission. This is partly because of uneducated agents who were unleashed on the market place to offer a shocking service and because of advertising done by certain property portals, advocating that property sales is a "DIY" job for the masses.
Some people feel that estate agents commission is too high. Larger franchises usually charge 7.5% of the purchase price, while independent agencies vary anywhere between 3% - 6%. When an agent works for a franchise, they must share their commission with the agency and if not for the high percentage, would not earn enough money to survive. The split in commission is exacerbated where the sale is concluded by another agent bringing in their buyer.
Independent agents do not have the expense of running a large office and maintaining a website and can therefore afford to lower their commissions. Generally speaking, estate agents do not make many sales in a month. Between 1 - 2 sales seems to be the average and sometimes many months can pass without making any sales. Although these commissions can seem high, when you average it out over 12 months, it is little more than an average salary.
Please remember that estate agents are real people with real families and real monthly expenses. Don’t try to get out of paying commission when it has been earned by an agent. I am sure you can imagine what it would be like if your employer approached you on the 20th of the month and informed you that your salary won't be paid. Think about what you would do in this situation and if you can bear doing it to anyone else?
In conclusion, if you do use an estate agent to assist you to sell your property, ensure that they are qualified and experienced (as you would a doctor). Use their expertise to your benefit and always pay what is due.