Rat and Mouse
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Fri
05
Jan
A reader writes: fixed fee for web referrals?
Hi As a developer/investor in Central / SW London, I spend a lot of money on agents fees. I don't begrudge it if they add value but it seems that most of my purchasers are coming to them through Primelocation so I am paying 2-3% for a referral and viewing service. That's an unacceptably large share of my margin. There is little use these days for or value added by boards, shop fronts, printed details - I can do these myself. Likewise the viewings. Generally, I shouldn't need their market knowledge or I shouldn't be in the business. I and, I feel sure, many other professionals would welcome paying a fixed or low %age fee solely for access to referrals from the websites. For Primelocation to object to this would, surely, be anti-competitive and grounds for referral to the OFT? I wonder whether any of your agent readers would consider this a reasonable model for extra business?
Comments

It's tough but (a) other sites have been referred to OFT over not carrying private sales and I suspect that Primelocation would successfully argue that they can choose who's ads they carry.

As to asking an agent to charge a lower fee for simple referrels, I suspect that with supply so low at present they may well be tempted but I expect that they would see this as the thin end of the wedge and decline your offer. I can't believe that an agent can't add more buyers into your properties - Sorry.

Posted by Henry Pryor - PrimeMove.com at January 5, 2007 2:57 PM

Comments

Interesting...

Posted by at March 23, 2007 6:55 PM


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