Only a ‘fifth of agents are capable of achieving higher fees’

Estate agency fees are thrown into the spotlight in the latest video instalment from the self-proclaimed Great And The Good of the Property Industry.

Russell Quirk Video

Estate agency fees are thrown into the spotlight in the latest video instalment from the self-proclaimed Great And The Good of the Property Industry.

The Neg reported yesterday on November’s fireside style chat which was co-ordinated by Russell Quirk, Co-Founder of ProperPR and The Giggs Group Founder Matt Giggs.

The panel (main picture) also includes Peter Rollings, former Chief Executive and current board member at Foxtons; Sarah Edmundson, Chief Executive of charity Agents Together; Gemma Noonan, Operations Director at The Giggs Group; Iain McKenzie, Chief Executive of The Guild of Property Professionals; Adam Day, UK Country Leader at eXp and Mark Burgess, Chief Executive at Iceberg Digital and software CRM, Lifesycle.

FEES

Today’s session focuses on the ever popular topic of estate agency fees – starting with the argument: “Why do you have to charge 0.75%?”

When it comes to raising fees and justifying your worth it’s Agent’s Together Chief Executive Sarah Edmundson who lays down the gauntlet – arguing that while 100% of agents are capable of achieving more only 15-20% of agents have the metal to put that into their sale processes.

Peter Rollings, former Foxtons Chief Executive and current board member, points to the vicious circle that happens when you don’t charge the right fee you can’t recruit the right people – quickly pointing out that Foxtons, the biggest agency in London in terms of volume – charges double of any of its competitors.

Our average fee is 2.73% across the whole of London and that includes Kensington and Crystal Palace.”

“We don’t get much of the big stuff, but my God we have volume and our average fee is 2.73% across the whole of London and that includes Kensington and Crystal Palace.”

The argument is for marginal gain sayings Rollings, increasing fees by small increments at a time.

UNITED STATES

Russell Quirk points to experiences in other countries – mainly the United States.

Agents can justify higher fees across the pond, he says, because they build up a lasting relationship with sellers – keeping them updated on market movements and the like. So when they want to sell they know exactly who they are going to and the fee is easier to justify.

Overall, it’s another healthy and entertaining debate and runs at 11 minutes and 23 seconds.

Watch the latest instalment HERE.

Topics still to come…

Door knocking. Yes, door knocking.

How do we actually sell a property?

Paying individual agent’s commissions. Yes or no?

Licensing. Should we or shouldn’t we?

Leadership. Does it actually exist in the estate agency sector?

Brand and Marketing. Explained.

2023 opportunities. How to set your stall out this year.

Critical skills needed in 2023.


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