Realtors work for commission, calculated as percentage of the transaction value. That is, the more money you are willing to spend, the more your agent's fee will be. At the same time, you will understand that many agents with different reputations, sets of skills and commission will operate in the market in parallel. We always treated this situation as non-transparent and unfair – find the explanation for that below:
WHY IT IS NOT FAIR
In the article "What is a realtor” we spoke about the roles the realtor combines, dealing with the transaction process. It sounds extensive, but in fact, for every deal the agent spends the same amount of effort, making the same set of actions. There is no difference for him in terms of labor costs whether to sell a one million euro house or a hundred thousand euro apartment, but in the first case, he earns ten times more than in the second.
Thus, it is profitable for the realtor to sell expensive objects, there is a temptation to discriminate customers based on their purchasing power. In case the agent follows a few more expensive deals parallel to yours, he is likely to pay you less attention, as it is more profitable for him to spend time on the sale of the object, making him more money. Additionally, he can try manipulating your opinion in order to lean you toward purchasing a more expensive object and increase his own earnings.
WORK FOR THE CLIENT
Realtor works neither for you nor for the developer, but for himself. The faster he completes the deal, the faster he is ready to earn again. In westarp.io we consider fixed commission to change the laws of the game in the real estate market in favor of the buyer, as it's possible to secure proper process of the real estate purchase for the same price with no price discrimination.
Be sure that our agents are fair-minded making advice and assessing the objects. our principle is not the sales manager affirmation that "my mission is my commission", but transparency, hospitability, and expertise.
WHERE IS THE MONEY, LEBOVSKY?
Some time ago we didn't charge a commission on your clients but got remuneration from developers. We didn't like it for two reasons:
1. This scheme forced us in some way to put the interests of the developer above the interests of the client;
2. Clients got used to pay for services and constantly expected some tricks.
Thus we introduced fixed commission in the amount of 5000 for every facility, paying back the whole commission to the buyers as a cash back from the developer after the deal (2-14% from the cost of a flat). You may spend this money to pay taxes, to buy furniture for your new flat or whatever else - we are sure it will come in handy after such an important purchase.
Why cashback specifically but not an ordinary discount? Business processes of the developer are set to secure permanent financial motion in the company. Therefore, it is more efficient for him to put money into circulation, and pay it back after the conclusion of the deal.
That means at present our clients pay common commission to the agent of Westarp.io, independent of the price of the flat and get cashback to spend as they wish. This practice applies to all geographical locations Westarp.io operates in