Join Australia's most dynamic and respected property investment community

profit on marketing fees

Discussion in 'The Buying & Selling Process' started by bruzzer, 24th Nov, 2015.

  1. bruzzer

    bruzzer New Member

    Joined:
    24th Nov, 2015
    Posts:
    2
    Location:
    sydney
    Hi,

    when selling a property, can agents make profit on marketing fees?
    when obtaining a quote, they vary from agent to agent so this got me thinking.
    can they put say 10% or 20% on top of their marketing costs?

    is this any different to their commissions?

    thanks
     
  2. D.T.

    D.T. Adelaide Property Manager Business Member

    Joined:
    13th Jun, 2015
    Posts:
    6,250
    Location:
    Adelaide, SA
    They can, but it has to be disclosed in their paperwork you receive and specified as a rebate, kickback, commission, etc.

    It may be none of the above; the agent may have negotiated a better deal due to their listing volume or business relationships.
     
    Last edited: 24th Nov, 2015
  3. LifesGood

    LifesGood Home Building & Development Consultant Business Member

    Joined:
    26th Jun, 2015
    Posts:
    671
    Location:
    Perth WA
  4. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,395
    Location:
    Melbourne, Nationwide
    I had the opportunity to sit in the classroom for the agents rep course about 12 years ago. This information could be completely out of date at this point...

    We were told at the time it was common practice to generate a quote for advertising based on the actual price of advertising for an add of that particular size in various local magazines. The agency would then buy the whole page for a significant discount and would pocket the difference.

    This was back in the days when most advertising was done in the local newspapers, the domain and realestate sites were still in their infancy. I imagine the regulations have had several reviews since then.
     
  5. bruzzer

    bruzzer New Member

    Joined:
    24th Nov, 2015
    Posts:
    2
    Location:
    sydney
    hmm, ok interesting because local agents quoted me $110 per week for a small ad in the local paper but the next door agent quoted $160. its kind of confusing, im not bothered if they make some money its just not consistent.
     
  6. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

    Joined:
    19th Jun, 2015
    Posts:
    1,504
    Location:
    NSW
  7. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

    Joined:
    14th Jun, 2015
    Posts:
    2,486
    Location:
    Sydney & Adelaide
    The agent should provide you with a marketing budget, and also disclose any rebates. And any unused marketing monies accounted and returned