All Topics / General Property / Paying agents for services by the hour?

Viewing 9 posts - 1 through 9 (of 9 total)
  • Profile photo of propertyhourpropertyhour
    Member
    @propertyhour
    Join Date: 2013
    Post Count: 3

    Hi everyone,

    Does anyone know of any agents in the Sydney area that would offer their services by the hour, in exchange for a smaller commission on sale of the property?

    Obviously this would allow an agent to make money throughout the entire process and have cash coming in, then still have commission as an incentive to complete the sale of the property.

    What do you think is a reasonable figure per hour?

    Profile photo of S RobertsS Roberts
    Participant
    @s-roberts
    Join Date: 2013
    Post Count: 6

    What objective are you looking to achieve?
    Do you want to pay less for the sale of your house or are you looking to give the agents more money.
    Personally I think most agents would ensure their bill able hours would offset any reduction in their commission.
    And what exactly is their incentive to push through a sale- They would make more money by just stringing vendors along as long as they can.

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    Agree with S Roberts – I wouldn't want an agent trying to sell one of my properties while being remunerated by the hour! It would end up costing more.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,850

    Likewise, not sure what you are trying to achieve – agents put forward an amount for their commission and then take a risk as to how long they will spend on the sale. The longer it takes the less profit in the deal for them. Why would they consider signing up for an hourly rate and get a minimal fee if they sell on the first open?

    Profile photo of propertyhourpropertyhour
    Member
    @propertyhour
    Join Date: 2013
    Post Count: 3

    Possible reasons for agents:

    1) Agents could do some freelance work and earn some cash on the side, while they are working their normal jobs

    2) Agencies get paid as they go, rather than working for the possibility of no reward at the end. This helps with cash flow.

    3) Commission could still be paid, but at a lower amount, i.e 0.5% as a means of keeping them motivated

    Possible reasons for sellers:

    1) The seller wants to try to minimize costs because they believe their property is unique and will sell quickly. They take a gamble as to how long it will take for them to sell

    2) The seller wants to be involved in the process, so they bring on an agent to do 20 hours work to set up the sale and help with the marketing, then to help advise on legals etc.

    Does that make sense?

    Profile photo of jenni_nextplace.com.aujenni_nextplace.com.au
    Member
    @jenni_nextplace.com.au
    Join Date: 2013
    Post Count: 36

    Na, not sure why would when the agent works for free unless they sell your property, why pay for them when you don't have to. 

    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010

    I'd rather pay for results than remunerating for work input.

    It encourages faster sales IMHO.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of propertyhourpropertyhour
    Member
    @propertyhour
    Join Date: 2013
    Post Count: 3

    This method takes the risk away for the agent, if they dont sell the property, they still make money for their trouble. If you incentivised the sale with a smaller commission, you are still encouraging the agent to complete the sale as soon as possible.

    If the sale takes long than expected, the seller pays the penalty. If on the other hand, the property sells quickly, the agent gets lower commission.

    I know this is different to the standard way that real estate works, but perhaps it is time to shake this up

    Profile photo of JothamJotham
    Member
    @jotham
    Join Date: 2012
    Post Count: 47

    Don't pay an agent anything until your house is sold for the price your happy with, make sure your agent is a good negotiator and can get the buyers highest price! BHP. 

    Do not work with an agent you feel uncomfortable with, and if you feel like something is wrong, then it probably is. Agents are amount the worst sharks out there. 

Viewing 9 posts - 1 through 9 (of 9 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.