banning commission

When I left university I decided to set up an estate agency!!!! and instead of charging commission I set up my proposition on the basis of a very low upfront fee plus the cost of the Home Information Pack, and NO COMMISSION. A year later and having spent over £15,000 of my fathers savings on marketing I have to report that the business model does not work. Despite offering a full estate agency service, and by the way I am qualified as estate agent "NFOPP Technical award in the sale of residential property" the public have consistently gone with the estate agents who offer a "free" commission based service. Now you might think it's a no brainier "aprilhomes"7,000 hits on the web site every month, full estate agency service for £150 upfront plus your HIP cost against say for a £250,000 sale commission of £5,000 plus HIP costs, but the public just don’t get it. The moral of my story is that the FSA and other quangos populated by people who, like myself when I left University, have no practical experience of the real commercial world can never understand the reality of real business life and the harsh facts of dealing with the public from a true commercial perspective. As it is RDR favours banks and the big direct sales force operations who will be able to continue in their old ways, they must be absolutely wetting themselves at the though of the demise of their only real competition the commission only IFA.

Posted by: Gareth Thomas BA Hons

What about the poor

I have advised many clients who have taken out a £10.00 term plan to cover their mortgage/family needs. They can begrudge signing up for that ten pound plan but I "sell" it to their need. If I have to negotiate an upfront charge I will be through the door quicker than that. Thanks to the FSA foresite the great unwashed of the country will have next to no cover. Still the wealthier members of society will be happy to pay for our services. It will not work. Like nil commission pensions didnt work. Bunch of clowns.

Posted by: Tied Agent