One prominent agent referral portal has introduced a ceiling cap to its fee structure in a courageous response to the 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 percent 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 percent commission will attract a LocalAgentFinder fee equal to 8.3 percent of their total commission, representing a significant discount to the industry standard of 20 percent.”
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