Average management fee (1 Viewer)

[z600]

Does anyone know the average management fee (comission) you pay a real estate agent for managing your property?

 

[codydhu]

Does anyone know the average management fee (comission) you pay a real estate agent for managing your property?

about 8% i think, depends on the agency agreement.
why do you need to know?

 

[z600]

Just wondering if my parents are getting ripped off

 

[pete_mate]

you should be more concerned about whether the agent is getting a good price than whether he charges 4% or 6%, there's much more money at stake.

for example, stephen levitt, in freakonomics:

"you shouldn't rely upon the real estate salesperson you hire to sell your home for the best price. Realtors make more money by churning through sales quickly, so they consistently underprice their clients' homes and badger their clients into selling too early.

Levitt studied 100,000 home sales in Chicago and found that when selling their own homes, real estate agents held out on average for ten days more than their clients did and, all else being equal in terms of the quality of the house, got over three percent more for it, or $10,000 on a $300,000 home."

 

[Sexy Ari]

you should be more concerned about whether the agent is getting a good price than whether he charges 4% or 6%, there's much more money at stake.

for example, stephen levitt, in freakonomics:

"you shouldn't rely upon the real estate salesperson you hire to sell your home for the best price. Realtors make more money by churning through sales quickly, so they consistently underprice their clients' homes and badger their clients into selling too early.

Levitt studied 100,000 home sales in Chicago and found that when selling their own homes, real estate agents held out on average for ten days more than their clients did and, all else being equal in terms of the quality of the house, got over three percent more for it, or $10,000 on a $300,000 home."

k.

 

[Apocalypsse]

you should be more concerned about whether the agent is getting a good price than whether he charges 4% or 6%, there's much more money at stake.

for example, stephen levitt, in freakonomics:

"you shouldn't rely upon the real estate salesperson you hire to sell your home for the best price. Realtors make more money by churning through sales quickly, so they consistently underprice their clients' homes and badger their clients into selling too early.

Levitt studied 100,000 home sales in Chicago and found that when selling their own homes, real estate agents held out on average for ten days more than their clients did and, all else being equal in terms of the quality of the house, got over three percent more for it, or $10,000 on a $300,000 home."

Im pretty sure one of our "Current Affairs" shows did something on that here. Pretty gay to be doing that kind of thing.

 

[pete_mate]

Im pretty sure one of our "Current Affairs" shows did something on that here. Pretty gay to be doing that kind of thing.

yeah but he used statistics evidence and scientific methods at one of the most prestigous schools of economics in the world.

today tonight uses anecdotal evidence from senile old people with voiceovers and music.

 

[velox]

Better off selling it yourself. We are going to sell our property ourselves, but that's because its in a very easy location to sell.

I think people are getting a few things confused here. The OP is probably talking about rental management fees, in which case I have no idea. For selling a house its 2%, which is a rip off. Consider a $1 000 000 home, when they sell it, they get $20 000!