Certainly the company had other agents who didn't ask for a fee. But if you need to know who, Robert, you can PM me.
If it's true I think it's a great idea. :classic:
Anyone who's ever shown houses will agree I'm sure.
There was an allegation that this had happened in relation to one realty company on the north coast about 18 months ago. Agent had apparently asked a couple for an upfront payment before showing properties & payment would be deducted from purchase. Fortunately couple had expat resident friends who directed them to other realty companies which didn't have this policy! I won't name the company because I was never quite certain that this was company policy or just one maverick agent's policy........... Certainly the company had other agents who didn't ask for a fee. But if you need to know who, Robert, you can PM me.
I agree with you! The business is full of tire kickers, especially at the lower end
I was with a broker last night that will only show 1/2 million plus properties and is very upfront about the client being able to qualify they have the money and are genuinely looking to purchase property.
She is doing VERY well and business is booming. I was stunned at the amount of 1/2 million plus properties that are moving here.
First time I've heard of this in real estate. I think it is a great idea for the low-end tire kickers. Even more of an incentive to utilize a quality realtor. For high end, I don't think so. To qualify the prospect well seems to be a better policy.
In our consulting field, we've done this for years, on the high end jobs, especially if we have to do complex specifications. It takes many hours and lots of investigation and research and the customer could turn around and give our spec to someone else to implement. So, we charge for this and cut it back to the customer if they purchase.
When I looked in December 2005 and made an offer the same month, my Century 21 agent had only shown us about 12 places in 2 days! I asked him what commission he made and he told me 10 %! He made easy money even after his split pecentage with Century 21. The villa closed March 2006.The company on the north coast that started charging 'possible purchasers' up front dropped the scheme fairly quickly like a hot potato. There were (& still are) too many professional AND unprofessional sellers/marketers of properties who refuse to charge buyers (so they get the punters!!!).
Personally I have serious qualms about up-front charging of prospects - WHO is the Realtor representing? The buyer or the seller? Isn't there likely to be a conflict of interests here?
Further, charging at between 6% & 10% of sale value for their commission, Realtors make a very good living. I can see that if they are not professional enough to 'vet' their prospects correctly nor able to 'budget' for the lost time/effort involved in showing prospects around, then they need to get some form of deposit to cover their non professional approach - as a result I would steer well clear of them as a buyer & most likely as a seller too!
Final point (& I know the answer to this before typing it!!) - will the Realtor reduce the commission levels to the seller because their risk element (built in to the agreed charge up front) mow be reduced accordingly?? ~ Grahame.
When I looked in December 2005 and made an offer the same month, my Century 21 agent had only shown us about 12 places in 2 days! I asked him what commission he made and he told me 10 %! He made easy money even after his split pecentage with Century 21. The villa closed March 2006.
If an agent wanted money from me, to take me to any possible purchase sight, I would probably lose it and drop them on the spot! That's how they make their money! What's next, you want me to fill your tank too and take you to lunch or dinner?
Give me a break!
Steve