Reply To: Estate Agents Fees

#64996
Chris M
Participant

@Fuengi wrote:

wow, this thread has become informative!!
To chris mccarthy, the information has been very interesting. Thanks!

A question.
You said you’ve closed down the IN system you use?
Does that mena if one of your salepeople sells my friends apartment she will get charged 2% + 1% of 7.5%? since your not on the IN now what are you arguments for keeping the higher commissions. I know you telesale people are calling all your clients (as mentioned earlier) but as you said it takes time.
I heard (yes gossip) that VIVA done most of the sales on the IN, with the lion share being VIVA properties, but other agency buyers? Is this true? will you still be sharing with other agents? is it feasible with 2% commissions?
Last but not least. My friend has her property on with you at 7.5% (she has not been approached yet regarding lower commissions). In 6 months she has not had a viewing, even though she was told that by going IN the property is more likely to sell because of the 50 agents, etc… Now she either stays at 7.5% but does not have the benefit of the IN, only your 12 or 14 offices or she pays X amount upfront to viva but has to pay a lower commission which is simply added onto what she wants for her property. So the argument is “We could not sell your property before at X amount with 50 agents” but we can now sell it for a drop in commission with 12/4 offices?

(hope i’m don’t sound combatitive just curious)

Dear Fuengi,

I am glad the information has been very interesting, and I am very grateful that everyone has been so open in return and prepared to try and understand our proposition.

I think I posted my first mail on Monday, and have tried to respond to everyone in turn across each day and before I know it, here I still am on Friday.

I think I have by and large covered almost every issue, I propose to answer each mail that is addressed to me up until today, as now a number of mails are naturally posts between others, and the debate more general.

Then, I think I had best get back to my day job next week, and will make a final post hopefully by the end of today or tomorrow.

But to your questions…

We will not be keeping the higher rate of commissions, please have your friend contact us and if she wants to re-list then we will do so.

I think it is true to say that our company did most of the sales on the IN, about 65% of the volume I believe. We will not per se be sharing with other agents in the future, we will list and promote our own vendors properties.

The real truth here is that an agent supposedly sharing properties does not work. Take a look at Flynn’s comments about how some agents use other agent’s properties to burn resales and sell new developments even to the point of doing so in front of the vendor. And sadly, we have many more reasons as to why it simply does not benefit the vendor or the buyer to have agents sharing.

If your friend had no viewings in six months, then that would be distressing, as it has been for Katy’s daughter, we are selling properties every single day and right now in numbers akin to our better years, we don’t need to work with 50 other agents to sell a property, as I said there are many reasons why this does not work, but that is probably a separate issue.

Hopefully that helps, and I can spend a bit more time today to go through the final posts and as I said get back to the day job.

Thanks

Chris