With the growing number of real estate agencies offering to slash their commission or to set a flat rate fee for selling your home, there needs to be a level of caution excercised by anyone considering listing their home, according to a local real estate agent.

Torquay resident and property consultant at Bruce Falk Property Geelong Scott Hunt believes that while cut price commissions may initially seem attractive to vendors, there may be consequences that are not obvious when signing an exclusive listing agreement.

"While many people see agents’ commissions as excessive and would welcome the opportunity to “grab a bargain” when choosing an agent, I say BEWARE," says Scott.

"The most obvious problem with this thinly disguised marketing ploy is that a flat fee offers the agent no incentive to get the best possible price for your home. If you pay them a set fee regardless of the outcome, then what financial incentive are you giving them to go out there and do their absolute best to try and find you and extra $10,000, $20,000 or $50,000 for your home. In many cases this will result in you saving money on the commission but losing a lot more on the sale price" he adds.

Mr Hunt believes a tightening market will always bring out more agent's willing to do anything to get listings, including cutting their commission rate dramatically. If vendors choose an agent on the amount of commission they charge he suggests they also set some clear expectations that the agent will do eveyhting they can to get the best possible sale price.

"Commission sales are the ultimate incentive for any sales person. Sure your agent might say they pride themselves on service, or doing a great job, but at the end of the day there’s no better motivator than money. So wouldn’t you want to give your agent the best incentive to go the extra distance for you?"

For the latest real estate information and advice contact Scott Hunt at Bruce Falk Property at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or by visiting his real estate blog at www.realestate3228.com.

---

Add this page to your favorite Social Bookmarking websites