Connells Group fee-share scheme gathers momentum
The Connells Group is in the throes of a fee-share scheme aimed at helping estate agents on the brink of mothballing their business or closure.
Speaking exclusively to The Negotiator, David Livesey (pictured), Connells Group chief executive, says the group will pay agents who transfer their unsold stock a share of the fee revenue if and when one of their properties is sold.
Agents can expect to receive 30% of the fee revenue generated by their transferred stock, depending on property type.
For example, agents whose stock comprises repossessions may receive a smaller fee because of the additional work involved for Connells.
Agents will not receive any upfront payment for the transfer of their portfolios.
Livesey says: “For the agent that’s closing, it’s potentially a bit of a silver lining to the horrible cloud."
Under the scheme, local agents and Connells will jointly liaise with vendors to seek permission for the stock transfer after which Connells will agree a fee-split arrangement with the agent.
Connells has so far undertaken around 25 transfers of stock, with each portfolio containing between 10 and 70 properties per branch that are subject to contract or for sale.
Andy Goundry, partner at Goundry Pearce Estate Agents in Cornwall, agrees that the scheme could help ailing agents.
“If a company has to close, it gives them a chance to maintain some income. And if they have ended up with creditors, it means that these stand a chance of getting some money back,” he says.