Be wary of a scaled commission approach
Following on from my previous blogs on setting the right expectations, we have heard that some agents, who are over pricing properties to get listings, are also combining a scaled commission approach with the offer.
This may seem reasonable and in some cases scaled commission is normal, but when coupled with over-pricing it becomes a “dodgy” sales technique to mislead the vendor in an attempt to validate the potential for the agent to achieve the highest and most ambitious price promised in their appraisal.
If we peel back the layers of this offer, the difference between the base commission and the higher end commission is only a matter of a few thousand dollars to the agent and structured so that no matter what the property sells for the agent is basically getting close to his full commission anyway.
In the end, the vendors get their expectations reset to the lower sale figure and are “short changed” on the promise of a higher sale price that was never going to materialise in the first place.
Recruit your agent carefully.
Andrew Bruce & Samia Malouf
Riverview Realty is a boutique agency focused on achieving the maximum price, with a client engagement that is above the industry standard. We call it the “Ultimate Experience” which forms part of our unique selling proposition.
Ph. 02 9420 0083, 59 Tambourine Bay Road, Riverview.
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