I admire this fellows initiative but I am afraid if he comes up North he will become dog tucker inside 3 months. Most people build in the agents commission in the selling price from the beginning so its no shock. Besides most agents will negotiate their commission either from the start, or when there is skin on the table. Best if luck to him
but I don’t like his chances.
“New breed of real estate agent charges by the hour”
December 27 2014
NEW BREED: Real estate agent Kim Franklin of Bellamy’s says his clients should think of him as a professional consultant.
A Christchurch real estate agent is offering an alternative to sellers fed up with paying percentage commission. He wants to spread north with his unusual model of charging hourly fees, reports ELOISE GIBSON.
House sellers fed up with paying real estate agents tens of thousands of dollars’ in commissions – regardless of how much work was done – may have a saviour in the form of a small Christchurch sales firm.
Kim Franklin, who charges by the hour to sell houses, is in talks with potential partners in Auckland about spreading his unusual business model.
Like a lawyer or accountant, Franklin sees himself as a highly skilled professional whom home owners employ as a consultant.
He earns a steady stream of income which arrives every week, regardless of whether he has made a sale, freeing him from the boom and bust pay cycle that can make agents stressed and desperate to sell.
Clients of his two-partner firm Bellamy’s pay only for the actual hours worked – an appealing pitch when the average agent’s commission is $18,000 plus GST.
On the downside, sellers must pay the same fees regardless of whether their house sells or how much it sells for.
It requires a lot of trust in the agent.