I understand what you say for bonus. But valuation company was too low because it say value was $400,000. 2 real estate agent says $400,000 to $440,000 and one says $420,000 to $450,000. But Ian Reid salesman says agents always say high price to get house for sale. Ian Reid salesman tell my friend to have bonus from $400,000 so agent will work hard to get good price and to get more commission. Agent do a little work and then house sell at auction. Then Ian Reid get all the bonus not the agent.
I hope this explains the philosophy behind incentive based commissions and why we make such recommendations. If you have any further queries, then we are happy to investigate or explain further.
I understand what you say for bonus. But valuation company was too low because it say value was $400,000. 2 real estate agent says $400,000 to $440,000 and one says $420,000 to $450,000. But Ian Reid salesman says agents always say high price to get house for sale. Ian Reid salesman tell my friend to have bonus from $400,000 so agent will work hard to get good price and to get more commission. Agent do a little work and then house sell at auction. Then Ian Reid get all the bonus not the agent.
@BollywoodStar1980 Over the past 10 years we have found that an independent valuation will in most cases be the most accurate opinion of market value prior to marketing and introducing buyers to the property and therefore recommend incentives around this level. i have checked the past 2 years of sales and can't find a sale matching that which you describe but as i have said if you would like me to look into it any further then i would encourage you to contact me on 9430 0000, Ben Reid, Manager.
In the example that you have described, your friend with our assistance achieved a fantastic result, in what has been a very tough market. This is why many vendors choose to structure the commission with a bonus or incentive. Further to this it is our policy to have our vendors re-confirm the total commission was acceptable when the property is sold.
Now, if your agent can use his marketing and negotiation skills to get your selling price up over this level then there is a big improvement on their commission. Are agents prepared to work harder with that sort of incentive? You bet they are and it costs you nothing, because the buyer is the one paying the fee from the additional price they paid for the property.
It is better to structure your fee, so that you pay them a flat rate up to the valued worth of the property, then a good incentive to get you more than that. Ex: You could offer them 2% up to $400,000 and 20% of everything they can get you above that figure. This would mean now on a sale price of $400,000 you actually save $2000 on commission or on $410,000 the commission is $10,200, almost the same as what they would have got on a flat rate of 2.5% on the lesser sale result of $400,000.
Ex: The home is worth $400,000 and you have it listed with a flat fee of 2.5% commission, which would be $10,000. Now, suppose the agent brings you an offer of $390,000. That would make their fee $9,750, only $250 less than if they found you $400,000. With only an extra $250 to be gained for himself, the agent will be concerned about losing the $9,750 he already has. He’s going to be very keen for you to sell at that lower price. But you stand to lose a good deal more than $250! You lose $9,750.
I have friend who use this company to sell her home last year she was shock when she realise how much commission she have to pay. She agree to have a bonus on top commission, like was recommended by the Ian Reid salesman. Her $438,000 house cost commission of 2.2% and also 22% bonus for $38,000 because this over $400,000. Total commission = $17,996! This same as 4% commission and on top she also pay almost $2,000 adverting too!
Thank you for comments, we always welcome the opportunity to explain why we recommend a certain marketing strategy or commission structure when it comes to selling. Without knowing specifically which property you are referring to, it is hard to explain the exact circumstances around this home. However, normally with an incentive based commission the base rate would have been reduced from the original proposal (for example 2.5% down to 2.0%). The higher incentive then over an agreed figure.
Damn!!! Ian Reid is one good looking bloke! So is the dude with the mo and glasses sitting on the left side of the board meeting. OMG, how can I meet these dreamy men?
I understand what you say for bonus. But valuation company was too low because it say value was $400,000. 2 real estate agent says $400,000 to $440,000 and one says $420,000 to $450,000. But Ian Reid salesman says agents always say high price to get house for sale. Ian Reid salesman tell my friend to have bonus from $400,000 so agent will work hard to get good price and to get more commission. Agent do a little work and then house sell at auction. Then Ian Reid get all the bonus not the agent.
BollywoodStar1980 5 months ago
I hope this explains the philosophy behind incentive based commissions and why we make such recommendations. If you have any further queries, then we are happy to investigate or explain further.
VendorAdvocacy 5 months ago
I understand what you say for bonus. But valuation company was too low because it say value was $400,000. 2 real estate agent says $400,000 to $440,000 and one says $420,000 to $450,000. But Ian Reid salesman says agents always say high price to get house for sale. Ian Reid salesman tell my friend to have bonus from $400,000 so agent will work hard to get good price and to get more commission. Agent do a little work and then house sell at auction. Then Ian Reid get all the bonus not the agent.
BollywoodStar1980 5 months ago
@BollywoodStar1980 Over the past 10 years we have found that an independent valuation will in most cases be the most accurate opinion of market value prior to marketing and introducing buyers to the property and therefore recommend incentives around this level. i have checked the past 2 years of sales and can't find a sale matching that which you describe but as i have said if you would like me to look into it any further then i would encourage you to contact me on 9430 0000, Ben Reid, Manager.
VendorAdvocacy 5 months ago
In the example that you have described, your friend with our assistance achieved a fantastic result, in what has been a very tough market. This is why many vendors choose to structure the commission with a bonus or incentive. Further to this it is our policy to have our vendors re-confirm the total commission was acceptable when the property is sold.
VendorAdvocacy 5 months ago
Now, if your agent can use his marketing and negotiation skills to get your selling price up over this level then there is a big improvement on their commission. Are agents prepared to work harder with that sort of incentive? You bet they are and it costs you nothing, because the buyer is the one paying the fee from the additional price they paid for the property.
VendorAdvocacy 5 months ago
It is better to structure your fee, so that you pay them a flat rate up to the valued worth of the property, then a good incentive to get you more than that. Ex: You could offer them 2% up to $400,000 and 20% of everything they can get you above that figure. This would mean now on a sale price of $400,000 you actually save $2000 on commission or on $410,000 the commission is $10,200, almost the same as what they would have got on a flat rate of 2.5% on the lesser sale result of $400,000.
VendorAdvocacy 5 months ago
Ex: The home is worth $400,000 and you have it listed with a flat fee of 2.5% commission, which would be $10,000. Now, suppose the agent brings you an offer of $390,000. That would make their fee $9,750, only $250 less than if they found you $400,000. With only an extra $250 to be gained for himself, the agent will be concerned about losing the $9,750 he already has. He’s going to be very keen for you to sell at that lower price. But you stand to lose a good deal more than $250! You lose $9,750.
VendorAdvocacy 5 months ago
I have friend who use this company to sell her home last year she was shock when she realise how much commission she have to pay. She agree to have a bonus on top commission, like was recommended by the Ian Reid salesman. Her $438,000 house cost commission of 2.2% and also 22% bonus for $38,000 because this over $400,000. Total commission = $17,996! This same as 4% commission and on top she also pay almost $2,000 adverting too!
BollywoodStar1980 6 months ago
Thank you for comments, we always welcome the opportunity to explain why we recommend a certain marketing strategy or commission structure when it comes to selling. Without knowing specifically which property you are referring to, it is hard to explain the exact circumstances around this home. However, normally with an incentive based commission the base rate would have been reduced from the original proposal (for example 2.5% down to 2.0%). The higher incentive then over an agreed figure.
VendorAdvocacy 5 months ago
@BollywoodStar1980 please read the following comments from bottom to top. word restrictions. sorry.
VendorAdvocacy 5 months ago
Damn!!! Ian Reid is one good looking bloke! So is the dude with the mo and glasses sitting on the left side of the board meeting. OMG, how can I meet these dreamy men?
Missrrrecky 7 months ago