Hi all,
I am selling a house in QLD and there is an advertising clause that said advertising costs $1.230.00 the house was on the market for 3 weeks only and I get a cheery email asking for the advertising money to be paid asap as they said the paper insisted it be paid straight away. As naive as I was (I have never sold any of my properties before) I signed giving the agent exclusive selling rights and I informed him that no advertising money would be paid until the property is sold. . They didn’t like it and said was highly unusual but agreed in the end to wait until sold.
Being interstate I have not ever seen any advertising other than
on the net and now it seems if I have been taken for a row now knowing advertising should only cost around $500. Wished I would of run it past the forum in the first place.II will now ask for a copy of all advertisements that they promised to send but haven’t. Have I any recourse if I find that the adds only cost $500 if in deed they have advertised or to I put this down to another lesson learnt???
Thank you
Jenny1
Jenny1
Why should you pay for the advertising? I don’t charge anyone for advertising as a licenced agent.? I figure that my comission is sufficient. I would request a copy of invoices from the advertising media not the Real Estate as its illegal to over charge.
Why should you pay for the advertising? I don’t charge anyone for advertising as a licenced agent.? I figure that my comission is sufficient. I would request a copy of invoices from the advertising media not the Real Estate as its illegal to over charge.
check out
http://www.jenman.com.au/BS_Advertising.phpComments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Thank you Duckster you cheered me up no end with the link you attached.[confused2]
Where to from here as I have stated I have not as yet paid for the $1230.00 advertising fee on the other hand I have seen no advertising??
Thank you
Jenny1
Hi Jenny
I paid advertising of about $2400 ( acution) for a place in Melb I sold a year or so back. The Auction didn mean a sale and then I paid about 3% in commission.
These days I would negotiate on total selling costs and expect a commission cost of around 2.5-3%.
Ask the agent to send you copies of all “advertsing” that you ahve supposedly paid for.
Negotiate a reduction in commission if not satisfied.
One of the problems with Agency advertising is that they are really advertising themselves not your property, have a look at how much advertsing space they take up in the ads they do for you and you will get an inkling of what I mean.
Warm Regards
SueMIT | Owen Real Estate
Email MeCheck the authority you signed with the agent. If we charge advertising we do not ask for it up front it would be paid upon settlement of the property. We also put in the Authority no sale no charge so if we dont sell the property there would be no cost to you. You would only pay sales commission and advertising on completion of a sale.
Thank you all for your replies, the agent got a little huffy when I asked to see the advertising that I paid for and he swore that he wasn’t on commission [confused2].
Callander that was a good point no sale no charge. I have only got a few more weeks on the Exclusive listing with this agency so I will see how the exhibition goes this weekend fingers crossed for me!
Thank you
Jenny1
I am also a licensed agent [blush2] (but more so an investor [biggrin])
I think anything over $1000 is ridicilous! Don’t ever let an agent talk you into the big colourful display adds, you are just paying for them to promote their agency, not your property.
We’ve sold properties using signboards and classified ads in the newspapers describing the property.
Always ask them how much cheaper the display ads would be if they didn’t have their company logos printed in the newspapers in colour!!!
We bill our clients exactly what it costs us and have reciepts to show them.
I agree that comissions are enough, but if the agency keeps paying for advertising for property that does not sell and therefore does not bring in a commission, the business will fall over very quickly!
Investment Property Management
http://www.adprop.com.auIt’s actually illegal for an agent to ask for advertising upon settlement – it should be paid up front. This is because the agent now has an interest in the property (the advertisement costs) and they may be seen to try to sell the property at a lower price because they want to make the sale and recover their advertising expenses.
http://www.goals2gether.com
Commit your goals to the entire community! Find a partner and achieve your goals together! Goals2gether.com is the place to find real help from people who have and are achieving the same goals as you!Originally posted by goals2gether:It’s actually illegal for an agent to ask for advertising upon settlement – it should be paid up front. This is because the agent now has an interest in the property (the advertisement costs) and they may be seen to try to sell the property at a lower price because they want to make the sale and recover their advertising expenses.
http://www.goals2gether.com
Commit your goals to the entire community! Find a partner and achieve your goals together! Goals2gether.com is the place to find real help from people who have and are achieving the same goals as you!I have honestly never heared of this [biggrin]
Just prepared a settlement summary today and included advertising (total of $135) to be paid at settlement. Most vendors perfer this because they don’t have to come up with money up front.I honestly can’t say what the legislation is like in other states, but paying money for advertising at settlement is perfectly permissable and preferred in SA [biggrin]
Investment Property Management
http://www.adprop.com.auDr X, here is Vic this is also normal practice and the preferred way by most Vendors (no up front costs). An REIV Authority has two options regarding payment of Advertising.
Opt 1, payable upon signing the Authority
Opt 2, Payable upon written damandWe forward an account sales to the Vendor Solicitor prior to settlement advising what fees are payable upon settlement (written demand). Dont see how this is illegal.
I do not see any justification to charge a commission and advertising expenses. Agents are working for them selves! If they are paid a commission-then advertising is a part of their operating costs or it should come out of the commission when the property is sold. Especially if you are locked up with an exclusive listing that guarantees them a lump sum equal to several months wages.
In my opinion agents have in fact become advertising salespeople. You pay them to advertise their business.
I am currently selling a property in Bendigo and opted to do my own marketing. It costs me a few hundred dollars for two signs and $130/month on the http://www.domain.com.au website.
Wish I had have known this a year ago… I sold a property in Toowoomba,QLD and the agent charged me so much in advertising that I had to pay it off for two months in weekly installments. It was $300 a weekend for a tiny ad in the local newspaper and took 6 weeks to sell! [grrr]
I will definitely negotiate advertising costs in the future and if I have to pay any at all it will be at settlement.
C
Hmmm what do you hate you find out there is always another way to skin a cat…The update is today we received mail with the advertising bill attached for payment but as I have already discussed it does not get paid until the house is sold.
What irks me is I told the agent no more expensive paper adds he is only to advertise on the internet he said no exhibition this week as no adds going in I said put exhibition times on the internet site that house is already adverties on he said too late for that I should of told him earlier [grrr]!!!
Don’t know why I am paying him commission if I have all the ideas
I thought he might of thought of that one himself
…Jenny1
Hi Jenny
Sorry to hear about your advertising troubles .
It happens that last week I bought a book called ‘REAL ESTATE without agents’ written by Terry Ryder . It is a very worthwhile read and can really open your eyes up to the crap that goes on with most agents
There are enough costs in property investing with out agents fees IMO .
Cost me $32 ….the best money I have spent for a while .
I hate doing business with dishonest people
Good Luck .
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