The costs and responsibilities of a real estate agent

Real estate agents conduct property walkthroughs. Picture: Shutterstock.
Real estate agents conduct property walkthroughs. Picture: Shutterstock.

A real estate agent helps clients to purchase, rent, or sell properties as well as offering advice about the current market conditions.

They conduct property walkthroughs, and provide assistance to property buyers, sellers and tenants who are leasing.

As with anything, when you are looking for a real estate agent, a good deal of research is required.

Jason Bedwell is a real estate sales manager, auctioneer and REIQ contract trainer.

"As a seller, one of the most expensive things you can do is give a good property to a bad agent.

"A good agent will effectively cost you nothing and ensure you won't miss out on any profit," he said.

A good agent will effectively cost you nothing and ensure you won't miss out on any profit,

Jason Bedwell

A real estate agent or sales person does similar work to a real estate broker, but brokers are licensed to manage their own a real estate businesses and agents must work with real estate brokers.

According to Jason, as the industry has been disrupted, we have transitioned into a more convenience based online driven economy.

"The sales agent's job description has evolved to require a much higher level of expertise in marketing and negotiation."

This comes with a greater requirement for speed and transparency from more knowledgeable consumers.

Real Estate Agent Responsibilities

  • Review purchase contracts to ensure terms are met
  • Promote properties with ads, listings, and open houses
  • Generate client leads to buy, sell, and rent property
  • Counsel clients on market conditions, prices, and mortgages
  • Develop a competitive market price by comparing properties
  • Create lists for real estate sale properties, with information location, features and square footage
  • Show properties to potential buyers and renters
  • Present purchase offers to sellers
  • Facilitate negotiations between buyers and sellers
  • Promote properties with ads, listings, and open houses
  • Prepare loyalty contracts, purchase agreements, rental agreements, deeds and other documents for each real estate transaction
  • Maintain your real estate license and knowledge
  • Review purchase contracts to ensure terms are met

When you are shortlisting potential agents to help sell your property, you need know what it will cost you, specifically their fees and commission.

According to openagent.com.au, real estate agent costs in Australia can vary from state to state.

The fees and commission you pay are the largest single cost associated with a property sale, so it makes sense to know what you are being charged and how this will impact your finances.

Depending on several factors in the local marketplace like turnover, Jason said that with the average sales price and relative competition, commissions can range anywhere from 1 per cent to 3.5 per cent or more.

That means if you sell your house for $500,000, then commission billed at an average rate will cost you approximately $14,000.

"The litmus test is the value-added mix the agent can provide to find the extra 5 per cent to 20 per cent the in market," said Jason.

It is also worth knowing that agent commissions are not regulated in Australia, and are 'set' by the market.

This story What does a real estate agent do and the cost associated? first appeared on Port Macquarie News.