Infolio

Flat fee vs commission: how should you pay your advisor?

5 December, 2014 / Category: Blog

Flat fee vs commission: how should you pay your advisor? banner image

If you have decided that it’s time to buy a new home, your first decision is that of going it alone, or seeking expert help. But is a buyer’s advocate really an advisor if they charge you a commission that is based on purchase price? To you the buyer, such measures can seem quite sales focused, and less attentive to your needs. And so, in choosing your advocate it’s important to deliberate; what makes a true advisor? And when does an advisor not become just another salesperson driven by price and profit? These are all important things to consider when selecting your buyer’s advocate.

Financial commitment, what does it bring?

Ask yourself this question. If you make no financial commitment to an advisory business, do you feel that your advisor:

  • Will have your best interests at heart?
  • Will be motivated to find you a suitable property quicker?
  • Will find you a quality property that is attuned to your needs?

Like any form of professional consultancy, property management is an investment. If you hire the right people, it will be money wisely spent. Unlike amateur advocates, Infolio experts have your best intentions at heart; ready to do whatever it takes to fulfill your property needs.

Commission VS fixed fees

Do you think it’s right that you are charged a commission based upon your purchase price, rather than a fee for service? As with many contractors, the fees for hiring a buyer’s advocate can vary depending on the level of service you choose, the scope of job, and the professional’s expertise.

As a very general guide, many buyer’s advocates full service fees are typically 1-3% + GST of the purchase price. This arrangement is quite similar to what most real estate agents will charge for selling a vendor’s property. Alternatively, some advocates, such as Infolio, are willing to negotiate a different payment plan.

Regardless of the payment arrangement you agree upon with your advocate; genuine buyers must commit to their advisors to build strong and trusting relationships. Only once confidence in your advocate is established will the process work best for you.

Salesperson VS advocate

In today’s market, many buyer’s advocates operate as salespeople, charging either no upfront commitment fee or an administration fee only. These sorts of advocates are often scared of losing business, or being undercut by their rivals.

Here at Infolio, we do charge a commitment, but you will get nothing but the very best advisory service. Our flat fee system means that you know what you are paying upfront, with no risk of unforeseen fees, and guarantee of a superior outcome. We will say no to properties more than we will say yes, driven by the desire to buy you the right property, for the right price.

Our fee for service system promises a true and honest advisory service, delivered by advocates who are motivated by their passion, not by a commission. At Infolio, we love nothing better than a successful result—the most important bottom line.

Sincerely yours,

Infolio

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