A written estimate of your sale price This is the agent’s best estimate of the price they expect your property could sell for, based on sales of similar properties in your area. This is referred to as an appraisal or a current market appraisal (CMA). How they recommend selling your property They should recommend the best way of selling your property, for example, by advertised price, tender, auction or deadline sale. The agent will set out how you’ve agreed to sell and what marketing you’ve agreed they’ll do. The agency agreement will include a listing price if your property is being marketed with an advertised price but not if it’s being sold by another method. What commission you’ll pay They should tell you what commission you’ll have to pay them, when you’ll have to pay and how this payment is calculated. Commissions can vary between agencies, so you may want to compare different agencies or negotiate with your preferred agency. The agent must explain the formula used and give you an estimate in dollars of the commission you’ll pay if your property sells at their estimated price. Usually the agency will take their commission out of the deposit once your agreement for sale and purchase becomes unconditional. What expenses you’ll pay for Usually you pay extra for marketing the property, but you don’t have to pay extra if you don’t want to. Ask what marketing is provided for free by the agency, for example, they may put details of your property in the agency’s office or on its website. You need to consider the cost of extra marketing against the possible benefit. The agency should prepare a detailed marketing plan explaining what you’re paying for and when. Remember, you’ll have to pay for the extra marketing even if your property doesn’t sell. When the agency agreement ends The agency agreement must have a set date, or timeframe from the time the agreement is signed, for when the agreement ends. The agreement must also say under what circumstances you might have to pay commission after the agreement ends. Remember, the real estate agent works for you, and you pay them for their services. Make sure you’re happy with their approach before you decide to sign an agreement with them. If you are unsure about any terms in the agency agreement, seek independent legal advice. What the agent should tell you before you sign an agency agreement
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