Clients accept solicitor fees as ‘necessary cost’ but not brokers’ – Star Letter 25/06/2021

Clients accept solicitor fees as ‘necessary cost’ but not brokers’ – Star Letter 25/06/2021

 

This week in a Marketwatch piece, HD Consultants owner Howard Reuben, Rose Capital’s managing director Richard Campo and Darryl Dhoffer, mortgage and protection consultant at The Mortgage Expert debated whether broker fees should be on a par with solicitors fees.

They suggested that due to a higher volume of business and heightened property prices there should be a restructuring of procuration fees, commission, and broker fees to better reflect the increased workload.

Paul Smulovitch said: “The difference here is the perception. Most clients accept a solicitor is a necessary cost and will pay accordingly, however, regarding brokers some clients are aware they can do without or use effective robo-advice so it is being sensible and justifying the charge.”

He added: “However, as most conveyancers charge circa £1,000 for work, as a broker fee this is not unreasonable at all.”

Adam Hosker said: “[It is] your business. Charge what you think works best for your business. If you think broker fees should match solicitors and be based on case complexity, then do it.”