We all know that most real estate agents and agency firms work on commissions. This means that the more they sell your house for, the more money they make. “Great” I hear you say, “I want to get the best price for my house”, but did you know that an agent purely focused on their commission could be costing you a sale?
In an agent’s ideal world, all offers presented to them will come from the the individual wanting to purchase the property but sometimes it comes from another agents contact , this is called a conjunctional offer.
What is a Conjunctional Agreement?
“A conjunctional agreement between a listing agent and another agent to share a fee arising from the introduction of a customer to the listing agent by the other agent.” (REIWA)
Is it fair to ask your agent to share their commission?
Who cares! It’s your property and you want it sold for the best price possible. Do not forget this very important point, it is the agent's job to act in your best interest; hence while at the negotiating table before you sign them up as your agent, ask the question and get a feel for what the firm's policy is and more importantly the agent's personal stance. Although rare., it is always best to know exactly what you are getting into.
How do you make sure your Agent accepts Conjunctional Agreements?
Unfortunately there is no way in guaranteeing that an agent is going to accept leads from other agents but here are a few pointers to try and help:
Don’t be shy, ask your agent what their policy is on the issue. They might only accept offers from other agents after a certain time period which will give them the opportunity to market and sell your property themselves before exploring other avenues. This could be acceptable to you, as long as you’re aware. Remember their job is to achieve the best possible price and outcome so timing may be an acceptable exception.
Schedule a short meeting with the Agency’s Director and check what their office policy is on the issue.
What is PEB Real Estate’s stand on the issue?
Director or PEB Real Estate, Jerry Collova is passionate about providing a positive journey for his customers and has very strict guidelines that his sales agents abide by.
Accepting conjunctional offers is just one of the many policies set out by the company which contribute to awarding his customers with a first-class experience.
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PEB Property Group is a complete financial planning advisory service for Perth families. Offices are located in Inglewood and Willetton, Perth, Western Australia and offer - Financial Planning · Finance Broking · Property Management · Real Estate Sales · Property Investment · Development.
PEB Finance is a trading name of PEB Brokers Pty Ltd ACN 604 784 401 | Australian Credit Licence 389510 | Credit Representative Number 476313.
PEB Real Estate is a trading name of PEB Real Estate Pty Ltd (Licensee) ABN 33 604 199 617 | Triennial Number RA70508.
PEB Financial Planning is a trading name of PEB Group WA Pty Ltd ACN 142 958 254. Rebecca Howarth and Howarth (WA) Pty Ltd trade as PEB Financial Planning. Rebecca Howarth (ARN 244928) and Howarth (WA) Pty Ltd (ARN 433328) are Authorised Representatives of NEO Financial Solutions Pty Ltd. AFSL 385845 | ABN 64 141 607 098.
Disclaimer: Any advice contained in this article is of a general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regard to those matters. Information in this edition is correct as of the date of publication and is subject to change.