Selling property agents fee

[TILT]

Having half a dozen large franchisors control the bulk of the business in Brisbane
creates a cartel where the commissions are held at artificially high levels . More so at the top end of sales. Agents should be made work off a set fee or hourly rate .People selling properties of over $500.000 pay TOOOOOOOOOOOOO much.

While the total number of franchises increases the number of major franchisors stays the same and their power to control the market becomes stronger. Independent agents don't mind this at all. Makes their job easier.

The number of agents in Australia is over supplied by 90%. Put them on a set fee and watch 90% of them disappear overnight. The industry is a dinosaur

 

[Rolf Latham]

Having half a dozen large franchisors control the bulk of the business in Brisbane
creates a cartel where the commissions are held at artificially high levels . More so at the top end of sales. Agents should be made work off a set fee or hourly rate .People selling properties of over $500.000 pay TOOOOOOOOOOOOO much.

While the total number of franchises increases the number of major franchisors stays the same and their power to control the market becomes stronger. Independent agents don't mind this at all. Makes their job easier.

The number of agents in Australia is over supplied by 90%. Put them on a set fee and watch 90% of them disappear overnight. The industry is a dinosaur

A few "shoulds" here ...............

A mentor once said to me if you dont like something, dont complain about it unless you have the willingness to make a difference.

In your case, quite obviously, you have identified a business opportunity for property sales over the 500k mark whom you believe pay too much currently in comms.

Get out there, build a business plan, find some investors and find some folks that feel like you do and get into it, and chase that business.

Market efficiency and dynamics will soon either work with you, or against you

What Say you ?

ta
rolf

 

[thepeoplesagent]

The number of agents in Australia is over supplied by 90%. Put them on a set fee and watch 90% of them disappear overnight. The industry is a dinosaur

90% tilt? So basically there is double the amount of agents there should be?

Tilt, can I respectfully suggest that your argument is a little flawed… You say agent’s fees are too high because there are too many. Well, in traditional society, it works the other way.

The more agents there are in a particular area, the more competitive they will be in their sale fee. I have seen this on a first hand basis. When I first started there was only a hand full of active agents. Now, every man and his dog have an agency. We would mostly achieve 3.3% for most sales, now we very rarely get that. Only because we have to compete with other agents who charge 2.2%.

Infact, your common agent is probably one of the only professions which is earning less and less as time goes on. Our fees are continuing to drop yet our overheads are the same if not more expensive.

At an extreme example, if there was only one agency in Sydney, they could charge nearly whatever they wanted. At the moment, the only thing from stopping that is the 90% of “surplus” agents.

 

[Rolf Latham]

90% tilt? So basically there is double the amount of agents there should be?

I interpret Tilts numbers to mean that for every 100 agents, 90 are in excess.

ta
rolf

 

[mattysavager]

I wonder what TILT does for a living?

Perhaps he would prefer that the government further regulates the industry, and limits the number of agents licensed in the state. Maybe there should be one agent per suburb? That would definitely put pressure on those agents to lower their fees? Wait, unless my memory of year 9 business is betraying me, I do think it works the other way.

The number of franchisees/independent agencies has nothing to do with commission rates. Franchised agencies have Principals (and business owners) who will decide how best to be competitive in their market. If they decide that charging standard commission will net them more profit than reducing commission to attract more clients, then that is their choice.