How to deal with Real Estate Agents to Save yourself big Money $$$

How to deal with Real Estate Agents to Save yourself big Money $$$

You would be surprised by the mistakes that agents make that you would think they would have enough experience to avoid making. This can work to your advantaged if you are on the ball though. Here are some things I’ve learnt over the years that have saved us thousands. Hopefully it can do the same for you!

Commission Rate

Negotiating a good commission rate is the first place to save yourself some serious money. Say the asking rate is 3% on a house worth $300,000 If you can negotiate even a .05% less that equates to $1,500. Not small bickies at all! You can often get a full percentage off – so it adds up very quickly indeed. • It’s always negotiable: Keep in mind that the Agents will make it seem as though they are not negotiable and that it is the ‘standard rate’, which may or may not be the case but doesn’t mean you have to accept it. Be prepared to walk away, (as with making a deal on a car). Do not completely close the door as such – it’s important to always remain courteous and leave yourself the option of being able to going back if necessary. More often than not though especially in the current leaner real estate market times they will need your business and realize you are serious and will negotiate with you.

Emailing

Is a good way to keep an accurate record of the questions you asked and importantly the answers that are given.

Keep a Record

If you are on the phone it is extremely prudent to take note of the date and the things you discussed with your agent. If you have more than one agent be sure to note which one you were speaking to.

Ask Ask Ask

This applies even if you ask what may seem to be obvious questions about “What happens next and what happens if….” It is with some of these seemingly obvious questions that you have some sort of recourse when the ‘obvious’ doesn’t end up happening as it should and costs you time and/or money.

A case in point

I emailed our agent about exactly what needed to occur to be able to get the early release of Deposit Money owing to us (also known as a Section 27) – I was told everything was under control. Then the day comes when we can legally access the money, which happened to fall on New Years Eve day, only to be told that our Lawyer had to prepare the documents for this to occur. He was off on holiday not to be heard of for 2 weeks, leaving us high and dry. ‘Not Happy Jan’ but it paid off to have asked that question because…… At the end of the day with the above mentioned oversight, plus a few others we were in a position to get a reduce commission rate (by half no less), which is nothing to be sniffed at!! Better in our pocket than there’s as they say.