There is a conviction that selling privately can save money by not paying commission. In fact it works the other way!

Look at the table below. It illustrates savings that you make by using an agent. When savings are measured against the agent's fees of 7%, it almost pays to use an agent!

Not all these costs will be evident in every transaction, but a large part of them will be present.

What does Save Money when Using An Agent?

% Saving

Higher sales price from a qualified agent
(results based on company statistics)

3 - 9.5%

Quicker sales save extra bond payments, rates
and insurances

1 - 2%

Legal fees

1 - 3%

Advertising, sings, flags etc.

1 - 2%

Needless repairs and expenses

1.5 - 2%

Quicker transfer and cancellation of bond, etc.

1.5 - 2%

Owner's time

1.25 - 1.5%

Total:

10.25 - 22%