We have an offer on one of our IP’S through agent who’s agreement runs out on 3/10. He had it sold a month or so ago and he let the buyers stuff around for nearly 4 weeks and then they pulled out. The tenants were moving so i let that happen and put another 10k on and had inspections today, one of the other offers from a month ago has back with 5k more. during the week the owner of my PM Agency rang me and said his inlaws are wanting to have a look and are keen, they really like the area and missed out on one over the road and have now sold, but he won’t look at it untill other agents agreement runs out on monday. I rang him today after the offer and the problem is he and his wife are flying to NZ on monday and can’t look at it with inlaws untill the following tuesday. Should i stick by my agent and take the deal or take the risk and wait a week.
PM did say he might not think its worth what i have been offered anyway. I suppose taking the offer is the ethical thing to do, agents fees are 7,350. Any opinions, give it to me straight.
Robo
ps. if you are wondering why i didn’t list it with pm he has only just taken over rent roll from another agency.“during the week the owner of my PM Agency rang me and said his inlaws are wanting to have a look and are keen, they really like the area and missed out on one over the road and have now sold, but he won’t look at it untill other agents agreement runs out on monday”
> If it were me, I would get the PM to take a look while they are in town. Why can’t he look at it until the other agent’s agreement expires. Can’t you take him to look at it yourself? He doesn’t have to put an offer in until the agreement expires, but surely there is nothing in your listing agreement that says you can’t show people yourself. Your existing agent doesn’t need to know. I may be missing something, but the PM agent will know if it suits at all straight away (even though he is not buying it). You’ll get something to work with before he goes to NZ, and whether or not there is going to be much more mileage in it.
Of course if you live away from the property none of that will work very well.
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We all need somewhere to live – but do we all need a CBD apartment?Brc,
I live 10m away, he won’t look at it until the other agents agreement finishes, he said if they find out i will have to pay comission anyway and i suppose he has a reputation to uphold.
The pm lives in same town. If you sell it to someone who looks at it while the agents agreement is current don’t you have to pay then their comission?
RoboHi Robo,
What is that saying, something about a bird in the hand? For me take the written offer and work from there and see what evolves over time.
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958There is a huge difference between someone wanting to look at your property and them buying it.
I would suggest you decide whether an immediate sale is better than waiting for another buyer. Your call – but I wouldn’t rely on the PM’s relatives buying after taking a look. I know I have looked at far more houses than bought by a ration of prob more than 50:1.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Thanks Guys we decided to take the offer after the agent extracted another 2.5k. See what happens if it goes to exchange if not there is always the PM. I did ask him if he would buy it without looking inside and he said he would never do that, but has sold plenty to people sight unseen: interesting. I asked our agent how he feels now after wanting to list it at 239k and the offer now is 247,500. He didn’t really have a answer mumbled something about different people will pay different prices.It was originally on at 245k and we accepted offer of 241k and that fell over so i put it up to 255k. The offer at the moment is from an investor who offered 240k first time around. Not a very good return 247,500 rent 225p/w. Luckily i got it 4 years ago. Makes you wonder where some agents get there values from, there all saying at the moment you have to get your price right if you want to sell, how many homes are being sold for less than what people will pay just because the agent wants to list them low to get the sale?
Thanks RoboHi Robo
Congratulations on accepting the offer. As you say, let’s hope it goes to exchange and settlement.
For future reference, in NSW, you could have overcome your PM’s reluctance to go through your REA buy signing a “non exclusive” agency agreement with your REA after their “exclusive” agency ran out. For an agent with a “non exclusive” agency to get paid their commission, they have to physically introduce a prospective buyer to a property. With an “exclusive” agency agreement they get their commission no matter who buys the property (during the term of the agreement).
So with the “non exclusive” agency in place you could have kept the offers coming from your REA and chased other offers yourself, while only paying commission if you’d accepted an offer via the REA.
I hope this helps.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Thanks Paul, when the exclusive agency runs out, having no current agreement is that the same as a non exclusive agency or do i need to sign a new one.
thanks
RoboRobo
You’re probably right about having to pay commission if you show the property while listed with a particular agent. It would depend on the agreement you had with that agent.
As for listing the house price too low – I fell for that one on my first sale. Initially I was happy to have it sold so quickly. I realised later that if people snapped it up so quickly it was underpriced. One of the most expensive lessons I have ever had.
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We all need somewhere to live – but do we all need a CBD apartment?Hi Robo
Have a look at the exclusive agency agreement that is just about to run out to check, but usually once an exclusive agency has time expired that’s the end of it.
You can then sign up as many agents as you like with non exclusive agencies and you’ll only pay commission to any of those agents if they “physically” introduce the buyer to the property. This physical introduction requirement allows you to find a buyer yourself and not have to pay commission.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
hi robo
I would take the offer on the table before I would somebody telling me they may buy a property.
but I would check that contract ( and everyone must check contracts very carefully) if you have signed a exclusive standard contract you will find in the small print that the agent can claim there commision for upto 3 months after the expiry of the contract.
also if you have signed with an agent and the agent sends the listing to more then one agent ie a group and your purchaser has seen or introduced by more then one agent the that property the purchaser must cross out in the purchase contract that they will pay the agents introduction commission ( I as standard cross it out, it is in most contracts,if you don’t you are leaving yourself open to multipul agent claims)
I usually and have last week sent my contracts back upto 4 times until the contract comes the way I like it before its signed.here to help
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