Real estate jargon can sometimes be confusing. For example, have you heard of the term “Discount Rate” when it comes to selling your home and do you know what it means? Let’s demystify it for you!
The discount rate is the difference between the advertised price and the final selling price, expressed as a percentage of the listed price. For example, a property advertised at $370,000 that sells for $342,000 has a discount rate of 7.6%.
Discount rates are not hard to find online. In the Cooma area, Domain.com lists an average discount rate of 9.4% for houses. This means that on average for a 4 bedroom house, real estate agents in the Cooma negotiated a selling price for almost $30,000 less than the vendor wanted.
If you’re selling your home, that’s a lot of money out of your pocket for your next move!
If you’re looking to sell your home, don’t be afraid to ask questions about discount rates. Any agent looking to secure your business should:
- Know their company’s discount rate compared with the average rate for your town
- Be upfront about how much you can realistically expect to achieve for your home
- Provide evidence to support their suggested selling price.
- Listing your home at an inflated price, simply to get you to sign, will cost you more in the long run.
- Demonstrate expert negotiation skills to achieve the highest price possible for you home
- Be trained to discourage bargain hunter buyers
Fisk and Nagle First Choice’s discount rate in Cooma is 3.6%. Compared with other agents, that means we get an extra $17,922 for our vendors on the sale of an average-priced 4 bed home.
If you’re looking to sell your home in Cooma, go to the agents who’ll put more money in your pocket.
Contact Geoff from Fisk and Nagle Real Estate today on 02 6452 4043.
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