HOW MANY HOURS’ WORK IS INVOLVED IN THE SALE OF A HOME?

Usually less than 10 hours. Sometimes as little as four hours – if you exclude the time spent at the listing presentation.

Even less for an auction sale. Consider four open-for-inspections at 30 minutes each and then 60 minutes on auction day. That’s three hours. And often the open-for-inspections are delegated to a junior – especially if you have listed your home with a so-called top agent.

With the average commission now exceeding $20,000 and even above $100,000 in upmarket areas, agents can earn a hefty income. For doing very little. Or so it seems.

Work it out. At 10 hours, it’s $2000 an hour. For an average property.

Or an auction on an upmarket home could work out at around $25,000 an hour.

Little wonder the industry is crawling with agents. But, before you get too judgmental, remember that what you are paying for is the agent’s effectiveness. You need to consider their ability to get you the highest market price.

Can you justify paying an agent $100,000 commission for four hours’ work? Well, if the agent negotiated $1,000,000 more than you expected (or accepted), maybe.

But if you have a property where the commission is $20,000 and the agent sells it at or below the standard market price, the agent likely hasn’t done anything you couldn’t do yourself.

Think before you sign.

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This is an excerpt from Neil’s latest book “EVERY QUESTION YOU MUST ASK BEFORE YOU SELL YOUR HOME”. To pre-order the full book, click on the cover below.