Success fee vs commission
The critical difference between using a real estate agent and a lawyer to sell your property is that lawyers don’t charge a commission based on the sale price. Instead, the client pays for the time and resources that go into the sale, plus an agreed success fee.
What do lawyers know about real estate, you ask? A great deal. Day in, day out, we work with our clients to solve real estate problems and negotiate successful outcomes. We already help many clients sell property privately.
Frankton Legal uses a three-part fee structure. All our pricing is GST inclusive.
1. Property Pack
Before any property is advertised, we compile all the information that a prospective buyer is going to want to see - so we can iron out any creases before we advertise.
We recommend our vendors get a LIM and a Building Inspection. Having this information streamlines and speeds up the process for all parties.
To help you determine a fair asking price, we recommend getting a Valuation for each property we list. You decide if you want to make the valuation available to prospective buyers.
We can arrange Professional Photos and Signage – as well as promoting your listing on TradeMe Property and realestate.co.nz.
There is upfront cost involved in promoting your property. Generally that cost will be between $2,500-$5,000. If this cost is an obstacle to you, we can talk about different options.
You pay for the materials and resources that go into selling your house - we don't charge any margin on these costs.
2. Sales Work
Someone needs to answer the enquiries about your property, show prospective buyers through and present you with offers. The great news is that you only pay for the actual hours worked. If your property sells within a couple of weeks, there will be fewer Sales Work hours to pay for.
Each new property listing begins with an initial 10 hours of Sales Work (based on $100/hour). You then top it up, as required, in 5 hour blocks. If your property sells and we haven’t used all the Sales Work hours you’ve bought, we credit that amount against the Success Fee. We think that’s fair.
Every week, we provide a report on your property’s enquiry activity and the Sales Work hours we’ve spent. That way, you know exactly where you’re at.
What about additional advertising? If you want to advertise over and above the Internet listings in the Property Pack, we can take care of that. And – keeping it affordable and transparent – we forward the advertising invoice to you directly. No mark-ups here at Frankton Legal.
3. Success Fee
The Success Fee varies depending on the property type (house or section) It includes all legal fees relating to the sale.
Success Fee for a house:
Success Fee for a section: