OpenAgent Review Do you need them
My first review of OpenAgent was created when they originally hit the market.
Since then, a number of things have come to light, so the old review has been retired !
My Latest review is here:
The First Review:
If the time has come to sell your home using the services of OpenAgent might cross your mind.
What does OpenAgent do?
From their website:
“ We spend our days figuring out what makes a great real estate agent and gathering as much information as possible about real estate agents in Australia. We look at over 40,000 real estate agents (ALL real estate agents in Australia) to figure out who is the best agent to sell your property. You can benefit from our hard work, and our service is free for sellers.”
Wow. OpenAgent sounds great! Hmmm. Maybe we should take a quick look under the hood. Open Agent do you need them
Ok. OpenAgent claim to be “free for sellers”. Really? They do all this for nothing? How do they make any money? Well, if you are the seller, OpenAgent does not charge you directly for selling your property. AWESOME! ….. But (and we all hate “buts”) for the real estate agents OpenAgent charges a “standard industry referral fee” on successful sale. OK, a referral fee. That doesn’t sound too bad at all, but to be sure, I’ll do the sums and see just what this referral fee equates too.
The first matter of business was to find out what the fee is and just how the fee is applied.
Wow. This proved to be no easy task. ( see details below )
Anyway, I managed to find out in the end:
OpenAgent charge 20% + GST of the agents commission on successful sale.
Time for the maths:
Lets take the average entry level home in Canning Vale selling at $600,000.
Good agents in Canning Vale tend to charge 2 – 3 % commission (of course there are those that charge just over 1.5%, but we won’t concern ourselves with these guys, with real estate agents you really do get what you pay for….. but that’s fodder for another post!)
Open Agent charge the agent a fee of 20% of the agents commission + GST on successful sale.
Assuming a 2.5% agent commission we get the following:
20% of 2.5% of $600,000 = $3000
$3000.00 + GST! on a $600,000 sale!
That’s right, $3300.00
OpenAgent Review Do you need them
Wow. What do OpenAgent provide for this fee? Again from the web:
“… We do the research so you don’t have to. It takes just 2 minutes to search and request results for your suburb.“
Couldn’t this be achieved by any seller with access to Google and a few phone calls or emails to the local agents? The vast majority of sales agents do not charge for “quotes”.
OpenAgent do claim to “monitor” your agent during the sales process, but the strange thing is, if OpenAgent have done the job they claim to do, and the agent recommended by them really is the best agent for the job (providing a professional and complete real estate service) he wouldn’t need to be monitored in the first place!!
I’m guessing the guy doing the monitoring would be sweating just about now…… I wonder if he can spell R E D U N D A N T ?
Is OpenAgent worth its fee? Hmmm. I’ll let you decide that one for yourselves. OpenAgent for Real Estate Agents Do you need them
OpenAgent Review Do you need them ?
With relation to my Real Estate services, here are the facts.
If you were to choose me to sell your $600k entry level Canning Vale home via OpenAgent I would have to pass on to you the $3300.00 “referral fee” that OpenAgent charge me. If you had contacted me directly this fee would simply disappear.
In Summary: OpenAgent is part of a plethora of companies out there (Sell My Castle, Local Agent Finder etc) that offer to put you in touch with the “BEST AGENT” via one means or another, touting no cost for the seller. These organisations would appear to be, for all intents and purposes, the very embodiment of the classic middle man. In Real Estate, as with any transaction, what do we consider the Golden Rule when trying to reduce transaction overheads? Simple: Just cut out the middle man!
Lastly, there is a great article by Glenn Batten from the Business2 website ( find article here ) regarding OpenAgents practices. To their credit, OpenAgent have since changed this tactic, but it still deserves a mention as it provides a peek into the mindset of those involved. The current site as it stands today shows stats and photos of agents…. but no names and no phone numbers. You need to contact OpenAgent to get the agents contact details. Fair enough. This wasn’t always the case. In 2014 the site displayed the names and phone numbers of all agents.The trick being, the phone numbers provided for each salesperson was not their actual phone number and any message you type in the send message option was never received by them. The mobile phone numbers were controlled by OpenAgent. All contact was actually intercepted and sold on to the salespeople as a lead. I wonder how many people using the OpenAgent site at the time knew this?
OpenAgent Review Do You Need Them ?
l Estate Agents Do you need them
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