Agents should increase their fees in 2023 so the average reaches at least 2%, a senior industry executive claims.
Adam Day, founder of online agent Hatched and now international expansion leader UK for eXp, said agents are worth more than the typical 1% they are now charging.
He said the previous 18 months have been easy to sell property, so there was a justification for lower fees, but he suggests agents can show their true worth and value in the new “tougher market.”
Day said in a Twitter video: “We are going into a market, that the media is telling us is tougher, less buyers, falling property prices, this is the time to start putting your fees up.
“I speak to different eXp country leaders about what the average commission is, no-one charges as little as we do.
“I am on a mission this year to talk about fees and get our fees up.
“We should be charging 2% min or a £5,000 plus VAT in fees at the very least, that is a good benchmark to start with.”
He said agents shouldn’t be afraid to walk away if a rival high street brand or online firm is charging a low fee to attract buyers, adding: “If you are offering professional photos, drone footage, presenter lead videos, WhatsApp voice calls and all the stuff I am seeing in eXp and outside, then you are offering a lot more than cheap fee online agents.
“The value is there and you can justify charging more.
“Clients will understand that if you want to get a personal service, you have to pay for it.”
Day recognised that he comes from a “cheap online agent” but said: “I have seen with my own eyes that cheap fee agency doesn’t work for the client or agent and you get a DIY service.”
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Drone footage, presenter lead videos are all gimmicks to try and gain higher fees....we all know properties sell if they are the right price and advertised on rightmove - it really is that simple.....
Or another way of looking at it, property has drone footage and videos but is overpriced will it sell....NO.
More suited for higher end properties where the fee isn't a factor.
OR, you pitch for the instruction on a nice prop against a competitor offering more and better marketing, guess who wins.
If accurate vals and RM are all it takes, Strike will kick a$$.
You get paid low fees for what you do and high fees for WHo you are.
"Adding value" is a nonsense. The assets that matter are trust, remarkability and humanity - not something that is easily replicated.
Methinks Adam is unaware of the current cost of living crisis in the country...
My local EXCP agent has 2 properties on the market none under offer
Spot on article. How many agents know how much it costs to sell or rent a property?
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