I see what you are trying to do, but the advertised price may be inflated and I don't believe it is really a valid benchmark for the purposes of calculating a fair discount, if the buyer chooses to use the % method.
Property mentor - Binvested Nathan Birch
- Thread starter sprightly
- Start date
I see what you are trying to do, but the advertised price may be inflated and I don't believe it is really a valid benchmark for the purposes of calculating a fair discount, if the buyer chooses to use the % method.
+1. I wouldn't go for it. The way I see it, your and your clients interest aren't aligned - your interest is to find the property on which you can achieve the biggest discount and hence fee - your client's interest is to acquire the property that most suits their needs at the terms and price that suits them best. These could possibly align, but don't automatically.
How on earth can you deduct anything from a discount? Am I being thick?
You could also get your mate to list his $350k house for $500k, 'talk him down' to $400k, score a whopping commission, get your mate a killer deal and fleece your client.
People will always work out ways to make incentive schemes work for themselves.
BR
Yes but my interest is to get you the best price so that I get paid too.
Not just flog you anything and get paid my full commission under the current fee structure other BA's are charging.
The only way is to have less of a discount!
First of all any BA can do that which is illegal. Commissions are capped at 2.5%. I missed that in my example. So in the case of my example it would be $12,500 not $15,000
Commissions are capped at 2.5%. The buyers interest and my interest are more aligned with this structure compared to the current fee structure of other BA's.
They could just flog you anything and put their fee on top.
My fee structure forces the agent to earn their fee and lowers the price for the buyer.
That sounds so much better when you say the fee will be deducted from the discount. Almost sounds as though I'm not actually paying anything. Hurrahhh
Wow!
And again. For someone who professes to be a BA, you have not one ounce of respect for your colleagues.
There are a couple of very highly regarded BAs on this forum who have proved their worth time after time, & here you are professing to be much more honourable than them, because they apparently 'just buy anything' because they will get paid no matter what.
Wow!
And again. For someone who professes to be a BA, you have not one ounce of respect for your colleagues.
There are a couple of very highly regarded BAs on this forum who have proved their worth time after time, & here you are professing to be much more honourable than them, because they apparently 'just buy anything' because they will get paid no matter what.
But Super Andrew isn't a BA. Or is he? He's getting paid now? But doesn't have a license. I'm confused.
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And again!
Please explain how your structure forces the agent to earn their fee, because I've bought more than a few properties, and even on my very first one I had no problem negotiating a better price than the advertised fee.
Also note, that if you are looking at properties in Timbucktoo, where no houses have been sold in a few years, yet every second house is for sale it takes no skill at all to get a large discount.
And again!
Please explain how your structure forces the agent to earn their fee, because I've bought more than a few properties, and even on my very first one I had no problem negotiating a better price than the advertised fee.
Also note, that if you are looking at properties in Timbucktoo, where no houses have been sold in a few years, yet every second house is for sale it takes no skill at all to get a large discount.
Wow!
And again. For someone who professes to be a BA, you have not one ounce of respect for your colleagues.
There are a couple of very highly regarded BAs on this forum who have proved their worth time after time, & here you are professing to be much more honourable than them, because they apparently 'just buy anything' because they will get paid no matter what.
Skater all you do is pick on general statements I make. I am sure there are many good buyer agents out there. Maybe they can consider the fee structure I am proposing.
My statement is referring to the fee structure of buyer agents which I think is not aligned with the interest of the buyer.
On the Australian Buyer Agent Association website they say that BA's can charge 2.5% of the purchase price. That is the same fee structure selling agents charge. Don't you think there is something not right about this?
How about you provide some constructive criticism on BA fee structures which can help other investors who visit this forum?
This is not about me. This is about fee structures of buyer agents and that they are not appropriate.
People who don't have anything better to do but bully me made this about me.
You could just flog me anything and put your fee on top (because it ison top of the purchase price) just the same as other BAs. The only difference is that you are incentivised to find overpriced properties so that you can maximise your fee through negotiating a discount.
Surely the value of the BA is in the sourcing of the correct property rather than negotiating a discount. I'd rather buy a wonderful property at a fair price than a fair property at a wonderful price. Apologies to WB for murdering his line.
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Look, up in the SS forum.......
is it a BA?
is it a REA?
is it a Spruiker?
Yes - its SuperAndrew!
Yay! All three in one! Gotta be a bargain.
