Estate agent fees in Dublin

[BIG-notorious]

It’s explained here.

No it isn't. You reference a paper and make a statement which is in no way connected with the paper you reference. The role of information asymmetry regarding product quality in distorting market pricing is in no way related to signalling in game theory. And the usual investigations effectively eliminate information asymmetry anyway making it even more irrelevant to whatever point you seem to believe you made.

And even if you think someone isn't serious why would you not act as if you believe they are if the house is worth buying? If fhey send contracts to your solicitor that's a very strong signal that they're serious, and these days you'd anyway be a fool to stop looking until a sale is nailed down.

By that logic they shouldn't bother putting any effort in to selling at all.

They should put in just enough effort so they get a quick sale at market price. The last 5% on a €500k sale might be the price of a new car for you but it's not going to equate to even a good night out for the well dressed salesperson by the time they pay tax.

Remember that an estate agent's first and most important sale is to the owner who is selling the property. Once that's done 90% or more of their fee is money in the bank in a sellers market. Would you break your back puttinginbtwice as much work for an extra 11%? When the same time selling yourself to another vendor would double it instead?

 

[ClubMan]

Remember that an estate agent's first and most important sale is to the owner who is selling the property.

Huh?

 

[BIG-notorious]

Huh?

For the last decade or more a fairly quick sale of any property with good title and no major defects is essentially guaranteed. Houses sell themselves these days due to to demand outstripping supply by some distance. Estate agents don't exactly have to work hard to get a place sold once they have it on their books.

But property owners don't, or at least shouldn't, pick an estate agent at random. From your account above you certainly didn't- you considered several options based on price and perceived quality and bought the services of one.

So the primary marketing effort of all of the estate agents you contacted should have been to you. They sold their services to you and that was the event which effectively guaranteed the fact and amount of their fee. The sale of your home to the purchaser was only relevant to the timing of the payment of their fee and, with the variables such as solicitor-lender-insurerer-purchaser efficiency, was mostly outside of the control and influence of the auctioneer as was the sale price.

Therefore the first and key sale the auctioneer made was the sale of their services to you. Everything else was basically the autopilot.

 

[T McGibney]

They should put in just enough effort so they get a quick sale at market price. The last 5% on a €500k sale might be the price of a new car for you but it's not going to equate to even a good night out for the well dressed salesperson by the time they pay tax.

Remember that an estate agent's first and most important sale is to the owner who is selling the property. Once that's done 90% or more of their fee is money in the bank in a sellers market. Would you break your back puttinginbtwice as much work for an extra 11%?

Someone hasn't read Dr Paddi Lund on how critical non-essentials are the key to running a business.

Why would any customer bother hiring a service provider in any field who's not willing to break sweat for them?

 

[irishguy]

It depends on the value of the home too and the location. Iv recently been quoted 0.9-1.5% + vat + costs on the southside.
There is scope to negotiate with them all, but tbh a good estate agent will easily be worth the commission. Go arrange a few viewings and ask a few questions see what the process is like. Also the agent that quoted us 1.5% wasnt a great experience to buy off of and we got an agent for 1% which was very good (On other houses we were bidding on)

 

[ClubMan]

Go arrange a few viewings and ask a few questions see what the process is like.

I've been to many viewings with a family member over the past few years and most of the time the EA doesn't have (or won't give out?) much more information than is already in the published listing and didn't do much more than open the property to let people in to look around.