Are you planning to sell or let a property through an agent, and you are concerned about the commission of a real estate agent?
When a sale of your property is done by an agent they are entitled to a commission from you. This commission may be a fixed amount or a percentage of the value at which your property is being sold at.
But which option to choose, an agent with the lowest fees in the market or an agent who is best in the area?
When you are selling your property you will be looking to get the best value for your property, any agent who is working for a fixed commission might not have the right motivation to value your property efficiently.
An agent with a fixed commission structure would seem a reasonable option but is it the best?
Let’s say an agent charges a fixed commission on the property sold i.e. €2000 and values your property at €200000 and on the other hand, there is a real estate agent out there charging 1% commission, who has the market and area knowledge and has sold properties in the area. He would value the property according to the earlier sold properties and as per the area. Let’s say he values your property at €220000, which would make his commission to be €2200. Which is relatively higher but the value of the property is higher as well. Which turns out is more profitable over this difference of €200 in the commission.
So, taking the services of the agent who has the lowest fees might not be the best option but an agent who is known in the area and can value your property efficiently is the agent you should sell your property through.