If an agent lists a property and it doesn't end up selling and the vendor moves it to another agent (exclusive) and basically "fires" the first agent, does that agent get anything at all? Obviously no commission, and since it seems the majority of agents now only charge for paper ads upfront and then their commission covers the rest, how do agents get paid if they don't sell a property!?!?
Question about agent fees
- Thread starter stevie_sloth
- Start date
Isn't the same for a buyers advocate too?
Oh yeah!
Actually, to be more accurate, many sales people earn a base salary + commissions. However, the agency will not keep a sales person or a BA on if they do not produce the goods, as they can't afford to carry 'dead weight'.
Many 'good' REAs and BAs prefer 'commission only' arrangements as they can earn more this way.
Ahhhh, they don't.
Good incentive to get them working hey? No sales = no eat.
Technically principals can make a killing actually...they rip punters blind with advertising fees...
In my view thats why agents push auctions more in downturn cycles so at least they can keep ticking over dollars...auctions require marketing.
I am looking at a cheapie currently under $200k...land value, knockdown basically and the owner has had it listed with the agent for 7 months, already been ripped $7k for advertising to date when i saw the agents declaration of fund splitting at settlement and now the agent is going iinto auction mode again for the third time..
Suckers are born every day and agents prey on this..
Agents don't make money on the advertising cs2, where did you hear that?
rebates are all but dead and gone from papers...
most agencies will charge advertising at cost for newspapers... which already includes their discount for being an agent.
Websites are a different story as agents pay a subscription fee to list as many properties as they need to... subscription fee doesn't cahnge depending on the number of ads so usually the fee charged to the client is some kind of standard worked out on averages.
most agencies will charge advertising at cost for newspapers... which already includes their discount for being an agent.
Websites are a different story as agents pay a subscription fee to list as many properties as they need to... subscription fee doesn't cahnge depending on the number of ads so usually the fee charged to the client is some kind of standard worked out on averages.
Have you seen the size of the glossy RE section in the Inner West Courier. Its about 3/4 of the whole paper and its a thick paper.
There has to be BIG rebates happening there. The local RE industry just could not afford to pay for that.
I don't believe print rebates have disapeared. But more to the point, do they pass that 'discount' on to the vendors?
There has to be BIG rebates happening there. The local RE industry just could not afford to pay for that.
I don't believe print rebates have disapeared. But more to the point, do they pass that 'discount' on to the vendors?
I didnt hear it, I know it as fact.....Many agents make a premium on advertising....it's pretty common.
I know agents who do the following:
- Charge $200-$500 for R/E.com.au listings...now agents pay a yearly premium for their service, with all agents listings it sure as hell doesnt come anywhere near breaking square, agents make a profit on this.
- Charge for rental listings on R/E.com.au
- Agents have accounts with newspapers: Small block adds or general advertising agents receive discounts left right and centre, many do not pass on this discounted rate, they inflate it.
- Agents often receive free advertising space from a newspaper...agents often use this space for feature adverts and charge the seller for this service when it is costing the agent zero dollars.
I can keep going on and on if you like.
This may not refer to all agents but it does refer to many I know.
What happens in other states outside Qld I do not know.
Depends, if you signed an agreement with the first agency, and it hasn't expired yet. You may haveto pay him or her commission from the sale.
Make sure any agreement with the first agent has expired and you'll be fine.
Not so sure about that. If the buyer was introduced by the first agent and the contract has expired you still could pay the comm.
Hi Evand,
Sorry very true, good pick up.
The first agent may also be entitled to a commission after the fixed term has ended if the property later sells to a person who was initially introduced by the original agent. It may be more difficult to prove, but it is possible.
You also may need to cancel the Exclusive Authority in writing even after the authority period has ended, as written in “fine print”, exclusive agreements may run indefinitely.
Similar threads
