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Fact - Commission IS Negotiable |
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Many Agents will flatly refuse to negotiate a rate lower than the maximum rate of commission permitted by law - many Sellers are led to believe that commission rates are “fixed” or “set”, or that there is only one rate of commission allowed. |
| Fact - Commission is not de-regulated in Queensland (for residential sales) |
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The Queensland State Government has set a maximum rate of commission – but Agents are free to charge any other sliding scale, flat rate or flat fee, provided that the total amount payable does not exceed the maximum permissible.
The maximum rate of commission is calculated at 5% of the first $18,000 of sale price, and 2½ of the balance of sale price, plus GST. A quick method of calculating this rate of commission is:
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= Commission
(don't forget to add 10% to this amount for GST) |
At Active Property Sales we offer a FULL real estate sales service at a reduced rate of commission. We established our business with lower overheads so we can pass on the savings to our clients. |
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Why don't other Agents Reduce Commission? |
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Some Agents will say that Agents who are willing to reduce their commission will be too keen to reduce the sale price of your home. At Active Property Sales, this is simply not true - we are committed to working with you to sell your property for a great price. Check our testimonials to see just how happy our past Sellers are with the prices we have obtained! We know that some real estate agency owners have instructed their staff NOT to reduce commission, under any circumstances. The process of selling real estate usually requires the Seller and Buyer to negotiate a sale price – this negotiation is conducted by a real estate agent. It is entirely appropriate for a real estate agent to negotiate a commission with the Seller, and at Active Property Sales, we are happy to do so. |
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Property: A four bedroom en-suite low-set family home with double lock-up garage and swimming pool, in a popular location close to all amenities.
The Listing Price: The Seller accepts the Active Real Estate Agent's recommendation to list at a figure slightly above the maximum price that the Agent feels the property would achieve.
The Method of Sale: A 60-day Exclusive Agency with Active Property Sales.
Comments: Because this type of property is in high demand, and because the Seller is comfortable with the recommendation in terms of price and method of sale, we have negotiated a commission of 2.2, including GST. The Calculator below will show the savings to Sellers who enjoy 2.2% commission:
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Want More Information about Commission? |
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Check out the State Government's website www.fairtrading.qld.gov.au, or phone 1300 658 030 and request a copy of their “Real Estate Realities” guide. These guides are also available from our office – just ask! |
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