The costs of commercial property deals can be huge, and this is why commission free agents can provide you with the best service.
There are many different ways that estate agents can be paid, and a lot of consumers are more than familiar with estate agents earning commission when they make a sale. The higher the price, the more money the estate agent will make but you will find that many clients and customers are more than happy to employ an estate agent that works on commission.
This is because the commission works as an incentive for the agent who knows that the more they sell the property for, the higher their fee will be. This provides the client with confidence that their estate agent will be motivated to work hard on their behalf and to achieve the best possible result. In this regard, you can see why so many estate agents work on commission and why so many of their clients are happy with this situation.
Of course, not every estate agent works on commission. This is as true for the commercial estate agency sector as it is for the residential market, and it is only natural that some clients will ask questions about this service. After all, if so many clients are happy to pay their estate agents on a commission basis, why would estate agents work on a non-commission basis. With this topic in mind, do commission free commercial estate agents work?
Firstly, not all clients are happy to see their estate agent operate on a commission basis. For properties that are likely to sell at a high price, which is often the case in the commercial sector, a commission-based agent could receive a huge sum of money. Most clients would prefer this not to be the case and you’ll also find that many agents don’t believe this is good for their business.
An agent may receive a lot of money for one sale from a commission but if the client doesn’t feel that the agent deserved this fee, they will be unlikely to use their services again. Estate agents that consider the long-term nature of their business may decide that working on a commission free basis is essential to developing relationships with clients and obtaining work time and time again.
Some clients may have concerns about an agent lacking in motivation without commission, but this is unlikely to be the case. Reputation, recommendations and testimonials are essential for commercial estate agents, and this provides the inspiration and motivation for an estate agent to provide a prominent level of service, even if they aren’t earning commission.
It's also worth remembering that an agent may not feel it is worth the time trying to get the highest price possible. For example, an extra £10,000 on the asking price could only equate to an extra £200 of comission for the agent (assuming they charge a 2% comission). So whilst £10,000 is a lot of money and most customers would expect their agent to try and secure this, the reality is the agent's motivation is not aligned with the customer for smaller final negotiations amounts.
These aspects are big reasons why commission free commercial estate agents work and provide a high standard of service to clients. If you are looking to find out why a commission free commercial estate agent could be ideal for your needs, get in touch with Virtual Commercial and we will do our best to show why we are the commercial estate agent for you.
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