This method takes the risk away for the agent, if they dont sell the property, they still make money for their trouble. If you incentivised the sale with a smaller commission, you are still encouraging the agent to complete the sale as soon as possible.

If the sale takes long than expected, the seller pays the penalty. If on the other hand, the…[Read more]

Possible reasons for agents:
1) Agents could do some freelance work and earn some cash on the side, while they are working their normal jobs

2) Agencies get paid as they go, rather than working for the possibility of no reward at the end. This helps with cash flow.

3) Commission could still be paid, but at a lower amount, i.e 0.5% as a means of…[Read more]