Episode 3: Zali Reynolds - Understanding Sales Commission

Zali Reynolds, from Shelter Real Estate in Glen Iris, is here to talk to you about how to be savvy when talking to your agent about sales commission when selling your property.

Sales commission is one of the bug bears of signing up an agent. What’s too much? What seems cheap? What does it include? When does it need to be paid? It’s a really scary process, especially when you’re talking about your most important asset. Zali Reynolds is in today to explain what’s acceptable and what to be weary of.

Intro:

Top producing agent, Zali Reynolds comes to real estate right today to talk to us about understanding sales commission. Zali owns boutique agency, shelter real estate in glen iris, and has previously been the director of one of Booroondara’s leading luxury estate agents. She has years of market insight and experience, ensuring her dedicated service gets her clients the results they desire with the support they require. She has won numerous awards for sales, works tirelessly for her charity, Global Village Housing that provides housing in Cambodia, and is devoted to her family. Zali is leading by example to show the world that she is consciously committed to helping others alongside actualising her own ambitions. Welcome Zali.

1. How much sales commission should we be paying?
2. What do we get for that sales commission?
3. How does the sales commission get split within the office?
4. What do you think about commission with incentives?
a. Recently an agent got fined for underquoting to a vendor, knowing full well that they would get more for the house, but put a low price on it, with an incentive, achieving the higher price. How can we make sure that we aren’t being conned into a higher commission?
5. What do we make of the companies that offer an ‘all-inclusive’ flat fee rate to sell your home?
a. We know purple bricks is over, but are there any other agents still offering this service?
b. Why haven’t they worked in Melbourne?

6. When we get 3 agents with similar experience to give us their proposals to help us sell our home, what should we be looking for?
a. If they all give the same commission structure?
b. If they don’t give us the same commission, what should we be concerned about?
7. Charles from Point Cook has had his agents through and he’s deciding who to go with. One included a separate auctioneer’s fee. Should we be paying that, or should that be absorbed into the sales commission?
8. So, can you now explain the different types of structures – falt percentage, incentive based/tiered fee or a flat dollar amount.
9. I know when I sold my first property, I was told 2% commission, but we have to pay the government as well, so its 2.2%. Not what I was expecting. How about GST… should we ask if it’s inclusive or not inclusive of the commission rate?

Special Offer From Zali:

If you would like to sell your home knowing that your commission is going to a cause, call Zali Reynolds at Shelter Real Estate on 9889 3990 or go to shelterrealestate.com.au