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Info on autioneers commission for high value house sale

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  • 25-01-2011 7:10pm
    #1
    noel123ie
    Registered Users Posts: 285 ✭✭


    Hi all

    Im selling a house currently values at 500000. We are trying to get the best deal from auctioneer from the point of view of his commission on sale.

    He normally charges 2% which is high on current industry rates. Im wondering am I best giving him a higher rate if house is sold within 12 months or a lower rate as price increases say drop from 2% to 1.75% after 1st 250000.

    We also could give say 1.5% up to 250000,1.75% to 500000 and 2% on anything upwards from this. I would hope to try and make the auctioneer get as high a price as possible, however it may also cause them to not take on board lower end offers. Who knows how their minds work :rolleyes:

    I understand we should be glad to get a purchaser but I really see these commissions as dead money

    Thanks for reading and any comments on strategy would be great
    Noel


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    #2
    Doop
    Registered Users Posts: 1,470 ✭✭✭Doop


    noel123ie wrote: »
    We also could give say 1.5% up to 250000,1.75% to 500000 and 2% on anything upwards from this. I would hope to try and make the auctioneer get as high a price as possible, however it may also cause them to not take on board lower end offers. Who knows how their minds work :rolleyes:

    Im sure the auctioneer would go for this, why not? run it past them see what they think. Or try another auctioneer.

    2% straight up sounds expensive... but then ive been out of the game for a while now. Have you had other auctioneers round?
    noel123ie wrote: »
    I understand we should be glad to get a purchaser but I really see these commissions as dead moneyl

    Well its your choice to engage a auctioneer, you pay for a service which you receive.

    Personally I dont think its dead money, in my humble opinion the auctioneer (if they're any good) will get you more money up and over what your paying them, therefore you profit from the service.

    Good luck with the sale!


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    #3
    Tigger
    Closed Accounts Posts: 16,705 ✭✭✭✭Tigger


    the commision won't be the issue here imho


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    #4
    antoinolachtnai
    Registered Users Posts: 9,787 ✭✭✭antoinolachtnai


    Well, thinking laterally, one suggestion would be to give 15 percent of everything over 400,000 euros, so if he actually sells it for 500k, he gets 7,500. You'd need to think a lot about the exact figures.

    Having a discussion like this will at least give you an idea how much he really thinks he can get for it.

    I'd imagine some auctioneers will go for something like this, a lot will run a mile.


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    #5
    Kosseegan
    Banned (with Prison Access) Posts: 987 ✭✭✭Kosseegan


    the auctioneer can't get blood from a turnip. His main role is to ensure that full market value is obtained. No matter how hard he works it will only be a fluke if any more is eventually obtained. Most negotiate their level of commission with regard to how easy it will be to sell the property. If they are going to have to struggle, with a lot of viewings over a lengthy period the charge will be higher. If it is relatively straightforward they will be prepared to take less.
    The most important thing is reputation.


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    #6
    Victor
    Registered Users Posts: 78,392 ✭✭✭✭Victor


    noel123ie wrote: »
    I understand we should be glad to get a purchaser but I really see these commissions as dead money
    Note that falling house prices is a complete barrel of laughs. :(


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    #7
    beeno67
    Registered Users Posts: 1,218 ✭✭✭beeno67


    antoinolachtnai wrote: »
    Well, thinking laterally, one suggestion would be to give 15 percent of everything over 400,000 euros, so if he actually sells it for 500k, he gets 7,500. You'd need to think a lot about the exact figures.

    .
    15% of everything over 400k would be 15,000 if he sold for 500k.

    Auctioneers used to charge 1% of sale price. As they semi-merged under group umbrellas and thus as competition decreased this rose to 1.5%. As competition continued to decrease the charge rose to 2%. This fee usually does not include VAT so the actual charge is 2.5%. Advertising is usually extra. I find it difficult to see how an auctioneer can justify charging €10,000 plus VAT plus expenses to sell a €500k house and indeed how they can justify that it costs twice as much to sell a 250k house as a 500k house.


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    #8
    gigino
    Closed Accounts Posts: 2,350 ✭✭✭gigino


    shop around and bargain hard as effectively you are spending a lot of money with them. I know a cousin who has his on the market is being charged 1% by the auctioneeer and he feels sorry he did not offer the auctioneer 0.5% or 0.75%. All auctioneers like to have properety to sell, and then to sell it. As it may not be more difficult to sell than a property worth 250k, how about offering 0.5% commission on the first 250k and 1 or 1.5% on the balance achieved ? If auctioneer A does not go for that, auctioneer B or C will.


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