More than 50 per cent of agents have given clients a discount on their standard commission, according to a new survey.
In the Real Estate Business Half-Yearly Sentiment Survey 2013, 54.7 per cent of 287 participants answered that they had given a discount to their vendors in the first half of the year, while 45.3 per cent said they had not.
The survey also reveals that 82.9 per cent of respondents had been asked to discount their commissions.
Director of hockingstuart Mooroolbark Ken Chappell said he had discounted his commission but it was a tactic that was only used in certain situations.
“If you had something on the market for a long time and you have got a fairly stubborn vendor in terms of price, and you get close to that figure and you just want to do the deal, sometimes you can bite the bullet just to get it off the market and get it sold," he told Real Estate Business.
With the current market in a state of buoyancy, Mr Chappell said it was not a question he was commonly asked, but generally it was a case of negotiating price.
“It’s very easy for a vendor to come back to you and say, 'If you can’t get another $5,000, take it off your commission'. But if you stand your ground and work it through with the vendor, they will soon realise that you’ve worked very hard to get the price you have,” he said.
Bruce Baker from RE/MAX Territory said he had been asked by vendors to discount commissions but refused to do so.
“By discounting your commission, you’re discounting your service,” he said. “We choose not to discount our service fee because we offer a professional service and I think our fees are appropriate.”
Mr Baker said he was honest in rejecting any request for a discount by explaining to vendors that his agency offered a professional service
“I think the minute you start discounting your fees then I suppose something’s got to give somewhere. Where does it stop?” he said.