Private Sale or Estate Agents

Coops a few ideas of area and type might just find a buyer in here.

Several of my online clients do sell their IP’s through here so put it out there and they could private message interest back to you to avoid agents fees. What state are you in as well as this impacts on the contract inclusions and conditions, as they differ from state to state.

Either way goodluck.

DD

Buyers Agent (Dip Financial Services(FP)
Don’t sweat the small stuff,and it’s all small stuff!!

Coops,

Any decent Real Estate Agent will do more than handle your sales contract.

They should at a minimum:
– provide you with a well researched estimate of your properties value
– prepare a tailored marketing campaign
– provide a visible sales office to attract prospects
– hold open & guided inspections on the property
– staff an office of well trained sales people to service inquiry on the sale of your home
– alternatively auction your home to the highest bidder
– introduce you to a network of professionals including: legal services, finance professionals if needed for your next purchase, tradespeople etc
– advise you on the presentation of your property to maximise the selling potential
– Provide a 24/7 selling service
– Professionally negotiate the best offer on your property and be prepared to obtain you the highest possible price
– Prepare a contract, when they have found a seller with a suitable offer, that protects your interests
– Guide all parties through the transaction to settlement

Hope your sale goes well: agent or private!

Luke Woollard
Licensee
Pacific Lifestyle Property
http://www.plproperty.com.au

comments made are general information only. you should seek professional advice for your particular circumstances.

carolsha, since when does a real estate agent “draw up a contract”?????

None that I know of do this!!!

In any case, a real estate agent will never work as hard for a vendor as the vendor would themselves. Think about the following scenario (other things being equal)…

Agent commission is 2%.
Vendor wants to sell at more than $200,000
Agent finds a buyer pretty quickly at $200,000 and tells vendor.
If vendor sells, agent receives $4,000 and vendor receives $196,000.

What if showing the property for two more weeks and doing some additional work resulted in the sale price being $210,000????

Additional agent commission is $200.
Additional money for vendor is $9,800.

You tell me why an agent would bust their chops for another two weeks doing numerous hours of work for a maximum extra income of $200 when they can take the $4,000 now!!!

TMA

Hi Coops
We recently sold our PPOR through a real estate agent and after they kept their hefty little fee we vowed we would never sell through an agent again. At the time we were unsure we knew what to do and thought the agent would do so much to help us, all they did was keep us in the dark about everything. Apart from organising times for people to look at the place they did nothing else. I personally would’ve preferred to make these arrangements with the interested buyers myself, rather then relaying it through the agent. I am sure there are many many excellent agents out there but we wont use one ever again. Our solicitor did all the necessary paperwork and in the end some of the wheeling and dealing. I say go for it yourselves you will feel more in control of the entire deal. The costs saved will be better off in your pocket….Good luck with it all…[biggrin]

An Agent is not qualified to provide a valuation on your property. There is an old trick that Agents use called ‘crunching’ (or ‘conditioning the vendor’). This is most common during auction campaigns but is equally as effective through standard for sale campaigns.

What happens is the Agent will tell the vendor the price they want to hear (ie: a ridiculously high price). They call this a ‘FREE Market Appraisal’. It is basically sucker marketing vendors to get them to sign up.

Once the vendor signs, the Agent usually has an exclusive agreement for 3 months or more. They have you by the short and curleys!

As the campaign moves forward, the Agent will come back with offers below what they told you. They begin to point out the negatives of the property and the toughness of the market to ‘condition’ the vendor. Coming into week 3 or 4 and with such ongoing ‘conditioning’, the vendor is usually ready to take less than what they were told by the unqualified Agent providing the ‘FREE Market Appraisal’. The sale usually occurs at this lower price.

Although the Agent is not always successful using this tactic, it is successful more often than not. Real Estate is a numbers game. The more you ‘list’, the more you can sell after talking the price up to get the vendor to sign and then ‘conditioning’ to bring the price back down to realistic levels.

PS: The Jenman system is the worst system I have ever seen for ‘conditioning’. Apart from what Jenman Agents may tell you, no person in their right mind talks a price up. Everyone wants to offer less than asking price. Auctions have their place in strong markets when competition drives the price up!

TMA

TMA a reputable agent will give you a list of recent sales in your area of properties sold that compare closely with your home. The fact is that most people will always go with the agent that gives them the highest figure. This is only natural because we all want the most we can get. Vendors need to be aware of these tatics from some agents, get them to back up the figure they have given you, ask them to explain how they came up with their price e.g. how much is the land component, house, fixtures and depreciation on fixtures.
Go to other home opens in the area, compare your home with the ones being offered.
By going to home opens you are also interviewing the rep for when you might need one. Ask questions, see if you would employ this rep to represent you in a sale.
Don’t just pick one because of the figure they give you. As you have said get them to back up the figure they have told you by putting them in the hot seat e.g. you are not paying for advertising if you don’t sell at a certain price or I want to clear after costs a certain figure. The rep can walk away if he/she feels that this price is not achievable.