You have to wonder if the average home seller really ever gives much thought to the work that goes into selling the average home. Real estate agents will tell you that they work 12 hours a day 7 days a week to get their clients properties sold. If they are managing the sale of say, 15 properties at a time, on average that means they will invest about 6 hours into the sale of any individual property. The average commission for an estate agent is 2% of the sale price plus marketing costs. Break that down and the agent is earning about $2,500 per hour. Now that is not bad work if you can get it!
Do you earn $2,500 per hour? Probably not, but then again you simply do not have the expertise that your estate agent has. All that education, all that knowledge. Obviously he or she deserves that hefty fee.
So what is it that an estate agent does that the home owner can't?
First of all they prepare the home for sale. Oh no, wait a sec actually it's the home seller who does that. The seller does the cleaning, the de-cluttering, the yard work needed to improve a home's street appeal. But at least the agent does tell them they need to, even if they don't actually pitch in.
Next the agent prepares the sale documents. Well actually they call a home sellers solicitor or conveyance to do that for them but it's the thought that counts.
The agent probably also places the online ad, writes a bit of sales copy and arranges for a For Sale sign. The homeowner could not possibly do that themselves could they? Well actually they wouldn't even need to. A service for FSBO (for sale by owner) sellers like Buymyplace.com.au can do it all for them for about $250 but who needs to talk about things like saving money?
The real estate agent also handles the inspections. Except they do probably need the home seller there to answer most of the questions because well, the seller does know more about the home than they do, they actually live there.
But, they argue, as a real estate agent I will get you the best possible sales price for your home. Maybe. If knocking $10,000 off the price to get it sold quickly at that commission in the bank faster is a possibility I may talk you into it. But it'll still be a good price! Never mind the recent research done across NSW Australia that showed that "more often the seller will get a better price than previously quoted by an agent"