EA commission amount

movilogo

I understand EA usually gets 1% of the sale price.

But what is the amount of commission individual sales negotiators get for each sale?

I am trying to figure out whether they have an incentive prevent selling at lower price or few grands of lower price is still good for them as more transactions means more money for them.

Thrugelmir

1% of £1,000 is £10. That's what the agency earns. A % of that as commission is negligble.

G_M

I may be wrong but I understood they were often incentivised by targets eg number of sales Completed in a given month or quarter.

AdrianC

movilogo wrote: »

I understand EA usually gets 1% of the sale price.

The agency business, yes, around that figure. From which they pay all their costs of being in business - premises, rates, advertising, tax - as well as their staff costs.

But what is the amount of commission individual sales negotiators get for each sale?

It'll depend massively on each individual's contract of employment. Targets may also figure heavily, if there is a commission element, so you can't say a blanket figure even for individual sales within the year.

I am trying to figure out whether they have an incentive prevent selling at lower price or few grands of lower price is still good for them as more transactions means more money for them.

You seem to forget one minor detail - the EA doesn't decide what offer gets made, or what offer gets accepted. The buyer decides what to offer, the vendor decides what to accept.

movilogo

I may be wrong but I understood they were often incentivised by targets eg number of sales Completed in a given month or quarter.

That's mostly what happens in car dealerships. They get fixed commission on all cars irrespecive of at what price the car got sold.

You seem to forget one minor detail - the EA doesn't decide what offer gets made, or what offer gets accepted. The buyer decides what to offer, the vendor decides what to accept.

EA decides what offer reaches to seller and passes decision to buyer.

I can't imagine they do not manipulate it to suit their needs.

I have faced situation where no decision communicated to buyer on offer status at all!

Thrugelmir

movilogo wrote: »

That's mostly what happens in car dealerships. They get fixed commission on all cars irrespecive of at what price the car got sold.

Cars are very different to houses.

AdrianC

movilogo wrote: »

That's mostly what happens in car dealerships. They get fixed commission on all cars irrespecive of at what price the car got sold.

I have absolutely no idea if they do or not, never having seen a car salesman's contract of employment - but I'd find that very hard to believe. Especially if you're suggesting there's no element of target involved.

EA decides what offer reaches to seller

No, they have to pass all offers on, legally, unless the vendor has given specific instructions.

and passes decision to buyer.

Are you suggesting that they'd lie - they'd tell a buyer that their accepted offer has been rejected (or simply not pass the information on), or their rejected offer has been accepted? Here in the real world, that would see them keeping their job for about three seconds flat, because it's not something that's going to be possible to ignore, is it?

I can't imagine they do not manipulate it to suit their needs.

Step away from the conspiracy theory. It's simply laughable.

I have faced situation where no decision communicated to buyer on offer status at all!

Were you the vendor or the buyer? If the buyer, do you know that it wasn't the vendor simply ignoring your offer? If the vendor, do you know it wasn't the buyer then evaporating having changed their mind?

[Deleted User]

movilogo wrote: »

I understand EA usually gets 1% of the sale price.

But what is the amount of commission individual sales negotiators get for each sale?

I am trying to figure out whether they have an incentive prevent selling at lower price or few grands of lower price is still good for them as more transactions means more money for them.

If they work for a smaller company get a % of the office commission. This means that the people who arent selling the houses (sales progressors, admin staff etc) will still earn. The negotiators in smaller independent companies would have a higher basic salary and earn about 2% of the fee.

Agents in larger corporate agents will earn maybe 5-10% as a commission but their basic salaries are a lot lower.

There are lots of ways to earn commission in corporate agency sales but its generally not worth pushing a buyer too far trying to get a few hundred pounds extra as it risks the sale altogether. They will be more concerned with trying to flog the legal services, mortgage services, surveys etc etc as that is where the real money is made.

I've not met a sales negotiator in many years of being in this industry that will care if your property sells for £5k under asking or if they get asking price. They just want to get a deal done and sell the add ons

If you want best chance of getting a deal pushed through for price you want then negotiate to 0.75% if its under maybe 95% of asking price, 1% if its asking price, or 1.25% if its a certain amount over asking price. That maybe gives a better chance of them trying to achieve a good price.

For the most part no one will care too much about them earning a few quid extra at the risk of losing a buyer altogether.

AdrianC

I've just seen an ad on a local FB group for a part-time "sales negotiator" for one of the EAs in town (national chain brand).

Minimum wage. Plus commission. Must have own car insured for business use.