Fees Commission Based Vs Fixed Fee

Commission Based

• Agents can be motivated to earn more if there is a commission as opposed to fixed sale fee
• For eg if the property was £150,000 and fixed fees charged was £999.00 & commission was .7%
• Fixed Fees would be £999.00 and .7% the cost would be £1050.00, therefore for another £50.00 the agents is motivated to get the best price possible
• If there is an upfront fee paid than the agent already has their fee there they might not be as motivated to perform as much as a commission based agent

Fixed Costs

• Client knows what their costs at point of sale, it avoids any calculations, not that they are complicated.
• If a customer is on a budget than this type of a fee structure might suit them.
• The service provided might not be as comprehensive as the commission based for eg. Fixed costs might not include viewings, these might be an extra charge.
• Depending on the % charged the commission based might cost the client another £100.00 but it might result in a better sales price for the sale of the property