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One prominent agent referral portal has introduced a ceiling cap to its fee structure in a courageous response to feedback that referral fees are out of value, particularly for high-end properties.
LocalAgentFinder has changed its fee model, capping the charge on properties above $800,000, effective immediately. Previously, the platform charged 0.375 per cent on sales across the price spectrum.
CEO Matt McCann is satisfied that LocalAgentFinder’s willingness to listen and respond positively will be well received by the market.
“We take industry feedback very seriously and, in the context of the recent growth in property prices in many markets, expect the new fee structure will both better match market conditions while proving popular with agents,” Mr McCann said.
“We listened to the message that referral fees are too high and create a barrier to joining the platform, particularly for those agents selling properties in higher-value brackets.”
Mr McCann added that agents are better off under the new fee structure.
“An agent selling a $2 million property at 1.8 per cent commission will attract a LocalAgentFinder fee equal to 8.3 per cent of their total commission, representing a significant discount to the industry standard of 20 per cent.”
Quality
LocalAgentFinder has also increased the capability of its call center, both in terms of size and skill.
“We’re talking directly to more home owners than ever before and using these detailed conversations about their needs and requirements to guide them to the right agent through our proprietary algorithm,” the CEO said.
“This will deliver a substantial improvement to the quality of the vendor information passed to our agent network — another thing we know the industry wants.”
Mr McCann feels that these developments will find favour with savvy agents.
He also said that it has become apparent that consumer demand for agent comparison services is on the rise.
“Consumers are looking for honest reviews and independent performance data so they can make informed purchasing decisions,” Mr McCann said.
“Agents who appreciate this trend and invest into understanding the platform and being responsive towards vendor opportunities can generate tremendous value for their businesses.”
In the last 12 months, approximately 65,000 Australian home owners registered on the LocalAgentFinder platform to compare and connect with real estate agents.
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