If you've ever sold a property, you may have wondered why you had to shell out up to 4% of the sale price to keep the agent happy.
Independent Real Estate Consulting - a consulting firm that effectively acts as a middleman between agent and seller - is one outfit looking to change this in its promise to split the agent's commission with the consumer.
People selling property, instead of approaching an agent directly and paying a large commission, can now instead register on IREC's website. IREC then contacts the agent, who pays the consultants a 'referral fee.' This referral fee, which comes directly out of the agent's commission, is then split 50:50 between IREC and the seller.
According to founder Robert Williams, the concept is based on an existing industry courtesy that one agent refers a client around to other, more suitable agencies.
"The agent will pay a referral fee, which works out around 20% of the commission that the agent would receive. The agents don't mind, because they are grateful for the business we bring them," he said.
For example, if your agent was making $10,000 from selling your property, if you used a referral service, the agent would make $8,000 and give the referrer $2,000, of which you would receive $1,000.
"Agents do provide sellers with numerous benefits, but in my experience in the real estate industry, people always think the commissions are too high. This service allows people to reap the benefits of agents without paying sky-high commissions," said Williams.
For more details on this service, please visit
www.independentrealestateconsulting.com.au
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