How can agents make money in 30 seconds or less?
Referrals.
This is the reason agents are often so keen to get your details and phone numer even though the house you’re selling is kilometres away from their office, if not on the other side of town and maybe even interstate.
Agents get a cut by referring you to a closer, more suitable agent.
Industry average is 20% of the sale fee, but it can range up to 30%. So let’s do the maths…with a fee of $10,000 – $15,000, that’s $2,000 – $3,000 that an agent will receive without lifting a finger.
This is standard referral practice across Australia. But under Victorian Legislation, the agency paying the referral fee must disclose it in writing.
Many referral agencies befriend the consumer. They claim they diligently research and compare the comparative attributes of rival agencies. Reality? It’s just a fee-based operation.
These referral operations are disguised as ‘vendor advocacies.’
Don’t get me wrong, there are, of course, other referral services and even real estate agents that take a hands on approach to referrals. These are the people who actively participate in the process, justifying their fee. Their inside knowledge of the agency they refer you to and industry knowledge places you, the consumer, in a better position.
If you have been referred to an agency, it might be in your financial best interest to ask to share in the referral bounty of 10% back to you!
It could just be the quickest money YOU have ever made!
Interestingly, we couldn’t find any links for you that cover referrals. This side of real estate is simply not acknowledged.
