Login
ISCOVER
Everyone has an opinion, and some people feel compelled to speak out. Here are just a few comments prompted by daily news broken on www.theadviser.com.au over the last month
Connective questions competitor volume claims
I agree, settlements are where it’s at. Saying that though, does any broker really give a toss about how many deals other aggregators are processing/settling? I know I don’t – it has no bearing on my business.
English Bob
English Bob, I find it interesting, as a one-man operation, to see just how my settlements compare to others in theindustry. Connective’s figures tell me their average settlements per broker are just under $839,000 per month, or a little over $10 million per annum, and the average book is just over $23 million per broker. It does give me a warm fuzzy feeling to know my own figures are much, much better than that.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
Brissy Broker
Must agree here, it is not a deal until it settles – none of us are paid for applications! The fat lady only sings at settlement time.
Regional Broker
BANKS HAVE ROOM TO MOVE ON COMMISSIONS
Personally, I’d like to see the existing commission structures tweaked! More work needs to be done on conversion/quality metrics and how they are treated. Having loans count towards conversion where the lender has declined it due to circumstances outside our control is a major issue. What they don’t realise is due to the existing metrics, some lenders don’t get loans they could possibly get due to a fear of ‘conversion’. I see those who simplify their commission structure first will be the ones that will end up being the most supported.
Boned
I don’t believe the majors are happy with their current market share and broker economics. The broker market is changing with lending products that are not available to the broker market and only available directly to clients from the bank. Our only way to deal with this is to support lenders that are not doing this to the broking industry. I hope it’s not too late.
Bob
Brokers split over developer kickbacks
How can you be giving ‘advice’ about property and getting a kickback from one developer only? How is that independent? Brokers will end up with a worse reputation than financial planners. Charge a fee for the property advice or refer them to a buyers’ agent. Otherwise you are just a product flogger like financial planners and will end up with the same credibility.
Ethical Broker
I am disgusted by anyone operating in the professional services industry who receives any form of remuneration from property transactions as a ‘middle-man’. There is already an official term for being paid to sell property – ‘real estate agent’ – they are required to be licensed and then get paid by vendors (not buyers). Brokers are no more qualified to know property than they are shares! Aggregators need to step in here. Governments need to intervene, too. This practice of brokers filling their pockets as ‘property distributors’ has the potenial to become Storm Financial Mark II.
Simon Pressley
Doesn’t it all depend on where (ethically speaking) the industry chooses to set the bar? And also, what representations you are making to your client (especially as to independence or impartiality)?
Richard Livingston
Why the hell is it unethical to take a referral payment from a developer if it’s all disclosed to the client? We pay referral fees to real estate agents, accountants, and solicitors for introducing clients to us. Referring doesn’t mean you are offering investment advice. If a client asks about investment opportunities in real estate and you are able to refer them to someone you believe is on the ball, then that is an extra service you’re providing. Whether the investment succeeds or fails falls on the head of the developer, not the referrer. If you think it’s unethical to refer to a developer then maybe you shouldn’t obtain the finance for your client for investment purposes.
Mitch
AGENTS THE KEY TO INCREASING REFERRALS
What’s the point here as most of the successful real estate firms have in-house brokers and their real estate agents are generously rewarded for keeping all business within. Those that don’t are nearly always most interested in “kick backs”. Who wants to dance with the ‘devil’?
Marcus
Agents expect substantial kick backs for their referrals. With commissions at the current level and cost of operating expenses, it is pointless to get more business from agents. After paying the agents, the leftover commission is barely covering costs.
Raymond Tai
