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Fees Commission Based Vs Fixed Fee
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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