What does 'Pooled Commission' mean?
Pooled Commission
Some estate agents work on a system where all the negotiators get paid an equal share of the fee charged by the agent. If you are selling such agents should be avoided as the negotiators have no incentive to compete with each other and so the price you achieve for the sale of your property is likely to be lower.
Search Results for 'pooled commission' in How to Really Buy a Property
Chapter 23:
Why Vendors Choose Bad Estate Agents
"...The first step is to be sure that the staff are motivated to sell. For this reason avoid agents that operate a "pooled commission". In this situation the fee goes into a central pot and then a percentage of that is shared between every negotiator who works there, whether or not they were involved in that particular transaction. The result is that the moment one negotiator has interest in your property the other negotiators lay off, knowing they will get a percentage of the deal. To them this is a simpler option than coming out at eight in the evening with an alternative buyer even if they might offer you an extra five or ten thousand pounds. That alternative buyer may be desperate to buy your property and more financially sound but they will never be told about it.
..."
"...The commission paid to a negotiator not on pooled commission is usually between ten and twenty percent of the fee the agent is charging. As such negotiating a low fee is not always as clever as you might think. If you feel very pleased with yourself for having bargained with a dozen agents and finally found one you could twist down to 1% consider this:
..."
Search Results for 'pooled commission' in Property FAQ
There were no results for 'pooled commission' in Propery FAQ
Search Results for 'pooled commission' in Property Terminology