Auctioneer costs at 3%

Hi there,

I'm selling a bungalow in an Irish town which has quite low property prices. The valuation on the property is 59-62k. The previous auctioneer wanted 1.75% plus €350 advertising costs but wasn't very good on response or being proactive selling. The new one I'm considering is very hard working, responds quickly and seems really straight. However they want a minimum fee of €1800 plus VAT plus €500 advertising costs. That equates to around 3% commission which seems very expensive.

Is this acceptable a minimum fee when selling in Ireland? Let's assume the auctioneer is potentially a very good one.

Thanks in advance

It seems a fair price to me for a proactive auctioneer.

1% fees were fine when properties were selling for €400k. But 1% of €60k is €600 which would not motivate an auctioneer. And don't forget, he gets nothing if he doesn't find a buyer.

I presume that the fee of €1800 is only payable if he sells it?

Brendan

You were going to pay a lower rate but the house wouldn't sell. You pay a higher rate with a better chance of selling the house. At the end of the day what do you want? To sell the house of course. Therefore go with who you think is going to get the job done.

Obviously it would be no harm negotiating with the auctioneer in advance on him possibly reducing his fee?

From what you're both saying, It sounds normal for an auctioneer in Ireland then at the better end of the scale. I agree that you get what you pay for in the end. I just wanted to get a feel for what is perceived as an acceptable fee.

Thanks for your replies.

celtic65 said:

From what you're both saying, It sounds normal for an auctioneer in Ireland then at the better end of the scale.

Click to expand...

Just to be clear - I hadn't heard of auctioneers charging a minimum fee before, so I don't think I could say it was "normal".

However, I do think it's a good idea.

Brendan

Thanks Brendan and I'm inclined to agree with you. I think if a fee is too low because its done on a commission basis, there may be less incentive to market properties in the lower price brackets.