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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