Ensure you never miss an issue of the
real estate business bulletin
REINSW backs traditional fee structures, warns against flat-fee agents

REINSW backs traditional fee structures, warns against flat-fee agents

REINSW backs traditional fee structures, warns against flat fee agents
by Sasha Karen 1 comments

The Real Estate Institute of New South Wales has endorsed agents who negotiate traditional fee structures, warning that upfront fee models pose real price risks for properties listed for sale.

REINSW president Leanne Pilkington said that the current weaker market highlights the impact upfront fees have on sellers.

“There had been a lot of press surrounding companies that offer a flat-fee upfront to sell a consumer’s home rather than the traditional commission model,” the president said.

“There is no motivation or incentive for these agents to take a professional approach in achieving the best possible result as they have already been paid regardless of the outcome.”

Ms Pilkington added that while in stronger markets upfront fees can save sellers money, the concept itself is hard to properly assess due to bursts of high demand and low supply.

She said that there is no way to see how this payment method functions consistently over the long term.

“As the peak body, REINSW is therefore concerned for sellers in this changing market who are vulnerable to such low-cost, high-risk strategies that have the potential to leave them in the lurch,” Ms Pilkington said.

“We encourage consumers to explore a full range of options when it comes to selling their most valuable asset: Don’t just go for the lowest-cost option as the risks are too high if you get it wrong. Never take anything on face value. Do your research and ensure that you are making the best decision.

“As the market cools, the true value of an experienced real estate professional can really be seen.”

REINSW backs traditional fee structures, warns against flat-fee agents
lawyersweekly logo
promoted content
Recommended by Spike Native Network
reb top 100 agents 2017

With a combined sales volume of over $14 billion in 2017, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
Coach your state of mind to unbridled real estate success

Leadership and mindset specialist, and founder of TMJ Coaching, Tanja M Jones joins host Tim Neary to reveal why most of REB’s Top 100 age...

View all podcasts

Will third-party lead generating platforms continue to entrench themselves into the real estate landscape?

Yes – but they are unwanted
Yes – and rightly so, they provide a useful service
No – they are leeches, have no inherent value and will not last
Huh? - what are third-party lead generators?
Do you have an industry update?