Most vendors (sellers) hire agents to sell their homes and everyone knows that advertising costs a lot. What not many people know is, that vendors transfer that cost to the buyers. Yes, that’s true – the asking price for the house is usually worked out this way – whatever vendor is hoping to sell it for plus real estate agent’s fee.
Here’s a real-life example – I was considering a house that was advertised for 295K. It so happened that I got to speak to the vendor himself. So I made him an offer and he told me –”Well, that’s too low, I am looking to get 290K”. When I checked to see how much was the estate agency fees, guess what I heard – 5000, what a surprise.
So my advice would be – before you start negotiating, work out what the real asking price is for that property. Find out how much the advertising real estate agency charges and subtract that from the asking price. The reason here is, when you make an offer and it is under the asking price but very close to the value of the house, the vendor is more likely to accept your offer.
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