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profit on marketing fees

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

  1. bruzzer

    bruzzer New Member

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    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

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    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

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    It's illegal to make money off marketing items charged to the owner. If it were to happen, as DT said, full disclosure would be required but I don't think an agent could get away with it in WA regardless.
     
  4. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    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 This information could be completely out of date at this point...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

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    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

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    The agent who quoted $110 may be passing on to you his discounted rate from the newspaper due to the volume of adverts they do and the deal struck.
     
  7. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    The agent should provide you with a marketing budget, and also disclose any rebates. And any unused marketing monies accounted and returned