Home Finance the pros and cons of the franchised estate agency

the pros and cons of the franchised estate agency

by AEA Staff

Estate agents are professionals who specialize in selling property. Estate agents work on commission and the agency typically takes a healthy cut from selling the property. However, estate agents can also negotiate with buyers to offer more for the property. Because of this negotiation, buyers should not be discouraged by the high commission rate. For sellers, these negotiations can provide more leverage than a standard listing price.

As a result of this power, sellers have a major advantage when it comes to listing with an estate agent. While the commission is high, the power the agent might have to negotiate with the buyers means that it can be compensated for.

Whether sellers should use an estate agent largely depends on the type of property they are trying to sell. For example, if a house is being sold for less than $100,000, it should be listed with an estate agent. However, if the property is valued at more than $400,000, the property should be listed by a real estate agent instead.

The major disadvantage of using an estate agent is that the agent can increase the commission fee significantly. However, they can also offer more negotiating power in the case of a bidding war over the property.

The advantage of using an estate agent is that they have the power to negotiate on behalf of sellers and buyers.

The disadvantage is that the commission can be too high for those looking to sell a property.


A franchised estate agent provides suitably capped charges and reassurance of the same level of service every time you call because all the staff at the branch will deliver the service at the same standard. However, this could be seen as a downside because this means that the estate agent doesn’t provide a personal or bespoke service which could lead to limited knowledge or a lack of passion for your needs.

related posts

Leave a Comment