We have all seen the TV ads, LocalAgentFinder is only confirming what we all know: “with the wrong agent you could lose tens of thousands of dollars from your sale price”. For anyone that might not know, LocalAgentFinder is an online portal that purports to connect sellers with the “right local agent”, because “The right agent makes a big difference”. They also constantly reinforce, in verbal and nonverbal communication, that it’s about fees! Agents post a profile, and a “bid” rate of commission for a listing, along with marketing costs, including how much they are prepared to subsidise, for sellers to compare. Consider this: In Brisbane the best agents are commanding up to, and in some cases over, 3%. Is it likely that a successful, leading agent would compete for business on a site driven by heavily discounted fees? I don’t think so ! What’s most likely is that the opposite will occur ie. Agents that are struggling for listings will be pitching to get the business by over promising and under quoting. In my opinion, It’s a likely scenario that if an agent has invested funds into securing an appointment – be it by extensive canvassing campaigns, subsidising advertising or discounting fees, when it comes to final negotiations it’s highly unlikely that said agent will have only the seller’s best interest in mind. The reality is they need to recuperate those expenses “at any cost”. Competition amongst agents to secure a listing in this manner can’t be conducive to the best possible advice/result for a seller. What’s more, is it likely that a top agent would want to get into an agency agreement with a seller that chose their agent based primarily on the fee rate? The real impact is that this creates a poor foundation for any ensuing business relationship between seller and agent. From the outset, it’s certainly not a win – win! As they say; you pay peanuts to get monkeys.