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Do estate agents pay commission/referral fees to third parties?

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SideB
SideB Posts: 173 Forumite
in House buying, renting & selling
I was wondering if anyone had ever heard of / know if estate agents ever pay commission to third parties, in exchange for successful leads on buying/renting properties?

Thank you!
«1

Comments

  • Guest101
    Guest101 Posts: 15,764 Forumite
    SideB wrote: »
    I was wondering if anyone had ever heard of / know if estate agents ever pay commission to third parties, in exchange for successful leads on buying/renting properties?

    Thank you!

    I'm slightly confused by what you mean?

    An estate agents job is to sell, not to buy.
  • marksoton
    marksoton Posts: 17,516 Forumite
    EA's are far too greedy for that. They only ever take commission/kick backs from third parties.....
  • SideB
    SideB Posts: 173 Forumite
    Guest101 wrote: »
    I'm slightly confused by what you mean?

    An estate agents job is to sell, not to buy.

    I meant, if an individual, such as me, could send leads to an estate agent for people interested in buying or renting, do you know if estate agents might be willing to at least split commission?

    I just wondered if anyone has heard of anyone doing this!
  • marksoton
    marksoton Posts: 17,516 Forumite
    SideB wrote: »
    I meant, if an individual, such as me, could send leads to an estate agent for people interested in buying or renting, do you know if estate agents might be willing to at least split commission?

    I just wondered if anyone has heard of anyone doing this!

    I very much doubt it. Agents do their own marketing in sought after areas.
  • agrinnall
    agrinnall Posts: 23,344 Forumite
    10,000 Posts Combo Breaker
    Why would any potential renter/buyer come to you rather than direct to the letting/selling agent? What do you have to offer them that they can't do for themselves? Sounds like a non-starter as a business plan to me.
  • eddddy
    eddddy Posts: 17,943 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    SideB wrote: »
    I was wondering if anyone had ever heard of / know if estate agents ever pay commission to third parties, in exchange for successful leads on buying/renting properties?

    Most EAs contracts allow the EA to appoint third party sub-agents and/or intermediaries.

    The sub-agent/intermediary almost certainly gets a piece of the EA's commission for introducing a buyer.

    You could try negotiating a sub-agency agreement with EAs. But I suspect that you would need a very compelling proposition.

    (For example, if you had a business that arranges visits to the UK for Chinese property investors - EAs might see that as a compelling reason to make a business arrangement with you.)
  • SideB
    SideB Posts: 173 Forumite
    agrinnall wrote: »
    Why would any potential renter/buyer come to you rather than direct to the letting/selling agent? What do you have to offer them that they can't do for themselves? Sounds like a non-starter as a business plan to me.

    It wasn't a business plan, it was a question. What I have to offer isn't relevant!
  • Guest101
    Guest101 Posts: 15,764 Forumite
    SideB wrote: »
    I meant, if an individual, such as me, could send leads to an estate agent for people interested in buying or renting, do you know if estate agents might be willing to at least split commission?

    I just wondered if anyone has heard of anyone doing this!



    People buy and rent specific properties, they don't choose the agent and then see what they have.


    So no, your idea has no actual viability
  • fixx
    fixx Posts: 792 Forumite
    Part of the Furniture 500 Posts
    I've seen it once - but in Switzerland (so a very different housing market), never in the UK. And that was offered by an independent estate agent dealing in top end properties, to a very well connected person.
  • marksoton
    marksoton Posts: 17,516 Forumite
    SideB wrote: »
    It wasn't a business plan, it was a question. What I have to offer isn't relevant!

    Vote one for dumbest comment of the year.
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