There are several well-known but cut-price estate agent firms which charge their fees upfront, but most traditional high street agents steer clear of this practice, wary that it may put people off from instructing them.

However, Kate Gostelow, Sales Director at North Wall in Liverpool (main picture), has done just that, and is making more money as a consequence. How has she done it?

Starting two years ago, North Wall began offering property sellers the opportunity to reduce the usual 1.8% +VAT fee down to 1.1 or 1.2% +VAT by paying an amount at the outset.

Under a ‘partial pre-pay’ arrangement, which most customers choose, they are charged £1-£2,000 to secure a lower rate.

Completions soar

By doing this North Wall has seen its completion rate soar from around 50% to a whopping 86%.

“I was 100% resistant [to begin with], and it has been a huge mind shift for me,” she told The Neg.

It has been a game-changer.”

“But it has been a game-changer,” she says. “It is not for everybody, and some [customers] will say ‘I will take my chances with an online agent’.”

Time wasters

However, there are some real advantages to the ‘blended fees’ model: “You cut out a lot of the time wasters,” she says.

“Sometimes you feel like you are working for nothing.” With video and other marketing costs of £1,200 and upwards you can see what she means.

The inspiration for the shift in approach came from Ian Preston, who as well as being a founding director at Yorkshire-based agency Preston Baker, is also a consultant trainer.

North Wall acquired a licence for the fees package from Preston.

Improved cash flow

Preston Baker adopted the fees upfront model four years ago after running a pilot trial, and hasn’t looked back, Preston says.

He is aware of 20 agencies of varying sizes that are also using it now as well, and they have improved their cashflow across the year, he says.

Preston offers a CRM package, Greenhouse OS, to support the no fees upfront model.

Read more: Upfront fees ‘skin in the game’ would stop fall-throughs