Sliding scale for estate agents commission?

Question

It was suggested on here to negotiate a sliding scale for commission with estate agents, i.e. the higher the price they sell it for, the better their commission. What percentage/scale would you suggest I ask for? (UK please).

Answer 1

The commission needs to be based on the services provided.

A larger office will probably want a larger commission as they will have more agents potentially showing your house, larger marketing budgets, access to things such as MLS and probably provide more in terms of financing assitance, inspections, etc.

A more experienced agent will probably demand a larger commission also.

I would start by calling several agencies in your area to find out their "standard" commission and what services they provide. You can then decide how much those services are actually worth to you.

Keep in mind that the agency you work with will most likely not get the entire commission. Commissions are usually split between the agency who lists the property and the agency who actually sells the property. It is then split between the agency "Broker" and the individual agents who actually had a piece of the sale.

Answer 2

I don't think the sliding scale will get your property sold any faster. In essence the more the Realtor can sell the home for the more they will earn anyway since commission is based on percentage.

Most Realtors won't look at small differences in commission, they are more concerned that they can get a buyer and seller together.

Regards,
Joe Ballarino
http://www.AmerivestRealty.com