More than 67 per cent of real estate agents do not pass on the additional costs of marketing a property to the vendor and instead cover the costs with their commission, new research has found.
In a recent Real Estate Business straw poll, 23.6 per cent of the 937 respondents said they charged vendors an additional fee for the marketing of their property.
Just over eight per cent claimed that they recouped some of the additional marketing costs.
Agents shouldn’t shy away from charging vendors an additional fee for the marketing a property given the time and resources required to successfully market a home, LJ Hooker Wembley principal Peter Locke said.
“The seller has a right to say what they wish for and how they will like their home to be marketed, therefore agents have the right to charge vendors with the associated costs of doing so,” the Perth-based principal told Real Estate Business.
“Generally, the more marketing a home receives the higher number of people in competition for the property. With the average days on market up and around 125, marketing is a crucial part of selling a home in timely fashion.”
These comments were largely echoed by Brenton Gadsby, sales executive for Bradfield & Prichard in Double Bay, NSW.
Speaking to Real Estate Business, Mr Gadsby, whose agency is based in Sydney's high-end eastern suburbs, said he was surprised to hear that such a large portion of the industry did not charge vendors additional marketing fees.
“In our office we have a saying, ‘you’re either on the market or in the background’. Most vendors understand advertising costs are simply part of the package,” he said.
“Marketing a property is about achieving the highest possible sales price for the vendor, so it surprises me that more agents are not passing on the cost.”