Incentive for agent
- Thread starter ger
- Start date
I s'pose that could work, i think you could over do it with the advertising, anny keen house hunter out there scan anarea, and they rarly miss a bargin, ss being the main culprits!, the commission rates you've segested are high to me but they could be an example, see what the agents are willing to negotiate on, but it is a tough market at the moment and if you got say, 925k that maens you get to live another day as this amount of money can buy so much in this market.
The standard REIQ commission is 5% of the first $18,000.00 and 2.5% of the balance, plus 10 % GST. The commission fee is negotiable, but more importantly appoint an agent who is going to earn it.
Cheers
Sue
keep in mind it might be better to offer the discount to buyers, not the agent.
Maybe at the higher end of the market, there is more ability to get someone to pay over the odds, so then you either purchasing the 'REA brand' to drag interest and or their network of buyers.
I have thought REA have a pretty good idea of the price, and if they say your property is ~$900k, then I doubt what additional effort they are going to give to try and get $1m.
It is my experience that REA would far prefer a known (and yes smaller) commission to sell in a relatively known time frame, compared to a possible higher commission but which could take many months, if at all, to materialise.
If the price is potentially marketed at a very high price. I suspect they will use the advertising on the property to market their brand and cross sell their other properties.
Any competent agent should know the difference between a property worth 900K and 1mill. Most of today’s buyers with that sort of money to spend are quiet educated in property values especially with today’s internet and property data available to the general public, unlike 10 years ago.
In QLD the max commission on a 900K property is $22,950 before GST, do you really think an agent is even worth that much for selling you property if its priced correctly for today’s market ? Yet you’re prepared to throw him an extra 10K for under valuing your property and getting the correct 1m it is worth.
In QLD the max commission on a 900K property is $22,950 before GST, do you really think an agent is even worth that much for selling you property if its priced correctly for today’s market ? Yet you’re prepared to throw him an extra 10K for under valuing your property and getting the correct 1m it is worth.
Unless of course you sell with Go Gecko and pay the capped commission of $5950 regardless of sale price.....
Yes, yes.... it's just a shameless plug but I couldn't resist
Kev
www.gogecko.com.au
Yes, yes.... it's just a shameless plug but I couldn't resist
Kev
www.gogecko.com.au
As soon as someone buys a franchise I guess.
We have had plenty of enquiry from WA however licensing regulations are very restrictive in WA so we are focused on a few of the other states at the moment. We have 3 in Canberra (counting Queanbeyan although technically in NSW) and have sold one in SA with another 2 or 3 in the process. We have around 18 in Qld and growing fast.
Kev
www.gogecko.com.au
I'd be happy to give you some info but obviously there is a process in place regarding applying for franchise details.
If you or anyone is interested in knowing more, email your contact details to me at [email protected] and I'll look after you.
Sorry to be brief but also I have always been involved at Somersoft to assist others and learn myself not to flagrantly promote any product or business I may have. My shameless plug was meant in jest more than anything but I appreciate your interest so just send me an email and we'll take it from there.
Thanks
Kev
www.gogecko.com.au
If you or anyone is interested in knowing more, email your contact details to me at [email protected] and I'll look after you.
Sorry to be brief but also I have always been involved at Somersoft to assist others and learn myself not to flagrantly promote any product or business I may have. My shameless plug was meant in jest more than anything but I appreciate your interest so just send me an email and we'll take it from there.
Thanks
Kev
www.gogecko.com.au
There have been a couple of others that have operated here for many yrs.
One I used in 1991 who was offering a kit and charging a flat fee.
RE agents and REBA tried to get them shut down as being defacto agents acting without a licence, but they failed.
I have noticed the same guy operating form the same office has now changed names but is still operating under the same principle.
If Go Gecko is acting under Re licence but just charging a flat fee, I can't understand why WA licensing would be any more restrictive??
I understand it was a tongue in cheek plus shameless plug Kev, but I think you will find ppl here who are genuinely interested in the idea of selling for a flat fee.
Anyway a guy with a name like 'Kev' has to be a good bloke right?
Good enuff for a Prime Minister....good enuff for me.
Kevin (kp)
fees are totally deregulated so I am not sure why an agent would pay for a franchise when they can just advertise that they are a fixed fee agent anyway?
I can't see how they would survive but I guess if you get a volume happening... like all low fee businesses I suppose. they said easyjet wouldn't survive. I actually considered setting up an easyjet style RE office about 10 years ago, but RE laws in this country are over rgeulated and just an inefficient barrier to competition - too hard, bigger fish to fry. consumers are so demanding and doing that for a piddling comm would just be way too much grief
now we just need fixed fee conveyancers and heck... how about lawyers??!!
I can't see how they would survive but I guess if you get a volume happening... like all low fee businesses I suppose. they said easyjet wouldn't survive. I actually considered setting up an easyjet style RE office about 10 years ago, but RE laws in this country are over rgeulated and just an inefficient barrier to competition - too hard, bigger fish to fry. consumers are so demanding and doing that for a piddling comm would just be way too much grief
now we just need fixed fee conveyancers and heck... how about lawyers??!!
Sorry KP, I didn't explain how the laws are restrictive.
You have to have 3 years experience to gain a license therefore restricting our opportunity to attract a franchisee unlike other states where a new person to the industry can obtain a license after intense training.
NZ is very much the same as WA.
Kev
www.gogecko.com.au
Brand, Systems, Support, Reduced costs, Networking opportunities..... Australia has the largest franchising industry in the world.
You are right, it is about volume. Just like opening a petrol station at $1 a litre you would have a queue from Perth to Brisbane. We have set targets of market share our businesses are expected to achieve.
We have looked at models like Waltons, Virgin and Aussie Home Loans.
The thing we believe the industry lacked was a clear Business model, a model which was entirely systemised and process driven rather than reliant on individuals and salespeople who built there own brand under the office banner and then resign, leaving behind an enormous whole in the businesses turnover and therefore profitability. We have stripped away many unnecessary costs to a traditional real estate agency and can run our business model far more efficiently and at a fraction of the expense ensuring excellent profit and a more robust model during market downturns such as we have just seen.
Running any business is never easy but with a determination to succeed and some good business sense the Go Gecko franchise model is an excellent choice for a profitabile franchise.
Cheers
Kev
www.gogecko.com.au
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