Why pay real estate agents’ fees?
For some reason, real estate agents generally don’t have the best of reputations—perhaps not quite as bad as lawyers, but not great either!
Of course, there are more good agents than bad ones but, often, the issue for a property vendor is centred on agent’s fees.
Comments such as: 3% of the purchase price, what did you do for that? I’m not paying your fees, ask the purchaser, or I’ve changed my mind, I can only pay 1%, are all too common.
The myth is that all real estate agents fees go to their “bottom line”; the reality is that most of the fees cover staffs costs, office running costs, marketing costs, petrol and car running expenses and so on—and the big one, time. Almost every customer wants to see 5/6 apartments or houses over 2/3 days before they lease or purchase; then there is the time dealing with owners, vendors and negotiating and signing up any transaction.
The net result being that, like any business, hopefully there is a small profit at the end of the day…
What do you think? Do agents justify their fees? Should there be a better system than fees being based on “success”?
Perfect Homes is a leading Chiang Mai real estate agency with extensive experience in the city, regionally, nationally and internationally.