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| News » Residential Property Law » Lauristons' flat fee a 'risk both ways' |
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24/10/2008
Lauristons' flat fee a 'risk both ways' |
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The introduction of a flat fee option by Lauristons is potentially problematic, it has been claimed.
According to Peter King, the chief executive of the National Association of Estate Agents (NAEA), the launch of a flat fee option could pose risks for both the estate agent and its clients.
London-based Lauristons is now offering its customers a choice between a fee of £999 or the traditional estate agents' commission of two to three per cent.
However, Mr King has warned that this could be a bad decision because the flat fee is much lower than the average amount paid in commission.
With regards to Lauristons' clients, he noted that they will pay the fee up front, so will lose the money if their property does not sell.
Mr King said: "It is a risk both ways. The agent is at risk, because £999 is way below the average commission. On the other hand, [if] the property is withdrawn that £999 stays with the agent. So if they don’t sell it, then they are still getting money back for their costs."
The National Association of Estate Agents (NAEA) is the UK’s professional body for estate agency and has 10,000 members in the UK and overseas. |
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