New Scam Targets Home Buyers and Sellers-Reality

We can thank the profession of the estate agency for providing us with a wide range of very effective and profitable sales tricks (for the agencies) such as the overvalue, the phantom buyer, the block, the phone-a-friend, the price-slash, the sealed-bid scam, the web of the spider and the slash-and-grab, just to name a few. The position of estate agents seems clear at first sight. They are hired by the seller to get the best price within the time required by the seller for the seller’s property. This means that the seller pays estate agents and, theoretically, they should always act in the best interests of the seller. Nevertheless, things are seldom so simple in real life. visit site

Agents are generally under enormous financial pressure to shift assets. A fairly modest basic salary is obtained by most individual estate agents. This could be as low as £1,000 (£12,000 a year a month. But if they achieve or exceed their sales targets, an officer can easily double or triple this from commission. Furthermore an agent can pocket thousands of pounds more from a wide net of people such as property developers, lawyers, surveyors, mortgage salespeople, financial advisors, friends, and even family members to push their way through lucrative business. Similarly, a branch manager of an agency could have a fairly low basic salary of around £ 1,660 a month (£ 20,000 a year). But from achieving a decent level of sales and further increasing their earnings up to £ 70,000 or £ 80,000 from the gratitude of their appreciative business contacts, they can increase this to over £ 50,000 a year in exchange for providing them with a stream of money-making opportunities, usually at the expense of homebuyers and sellers.

Agents are also subject to intense psychological pressure to sell from their mangers. For their employees, many agencies operate a ‘burn and churn’ policy – they get trainees in often directly from college, and push them to meet ambitious sales goals with 11-hour days and 6-day weeks that are not uncommon. Those who achieve their sales goals without being burned out keep their jobs; those who miss them repeatedly get replaced – churned out. Many agencies will have ‘come to Jesus meetings’ monthly or even weekly, where they gather all their employees together and each agent has to justify their results – how many properties they have brought to the books of the agency, how many phone calls they have made to potential buyers, how many viewings they have arranged, how many sales they have closed and how much business they have generated for the potential buyers Those who hit targets are praised and can get immediate cash bonuses and other prizes; they are publicly humiliated by those who miss them.