Hi guys
I’m looking at purchasing a property in Regional Queensland.
In the particular market I’m looking in I’ve experienced integrity issues with a particular agent. You’d think agents would realize by now prospective buyers have access to most if not all information on a particular property.
Anyhow, I’m currently looking at a property at the moment which is marketed by this agent. The property is owner occupied and I’m thinking of approaching the vendor directly and negotiating on the property.
There would be substantial benefit to the vendor by negating the agents commission fee and give me room to negotiate. Win-Win all round.
I’m not sure about the mechanics but has anyone any experience with a situation like this and are there any legal ramifications?
Any thoughts,
Jack
wait for the for sale contract to end, (usually 3 months) and then the vendor can do what they like.
blocka wrote:wait for the for sale contract to end, (usually 3 months) and then the vendor can do what they like.Thanks blocka.
Is there anyway the vendor can exit the sales contract early of his own volition?
Jack
Ask the vendor, who needs to be not only willing, but legally able.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
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thecrest wrote:Ask the vendor, who needs to be not only willing, but legally able.
Cheers
thecrestYep sounds like a plan.
Thanks for the help guys.
Jack
H Jack
Just be aware that, even after a listing agreement has expired, an Agent may be successful with a claim for his/her commission, if s/he introduced you to the property during a period when s/he had an 'exclusive' listing agreement on the property. That's one of the reasons Agents nearly always get your name and address when they first talk with you.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
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PaulDobson wrote:H JackJust be aware that, even after a listing agreement has expired, an Agent may be successful with a claim for his/her commission, if s/he introduced you to the property during a period when s/he had an 'exclusive' listing agreement on the property. That's one of the reasons Agents nearly always get your name and address when they first talk with you.
Cheers, Paul
Thanks Paul for the heads up I wasn’t aware of that one. Thankfully I’ve not made any direct inquiries with the agent on this one but I’ll tread carefully none-the-less.
Cheers mate,
Jack
Are you prepared to lose the deal because you want to wait out the exclusivity period? Also, if you don't like dealing with the agent, get a hired gun to do the negotiation, that way you have an expert on your side, you reduce your risk by not waiting out the exclusivity period & you don't deal with the agent.
Scott No Mates wrote:Are you prepared to lose the deal because you want to wait out the exclusivity period? Also, if you don't like dealing with the agent, get a hired gun to do the negotiation, that way you have an expert on your side, you reduce your risk by not waiting out the exclusivity period & you don't deal with the agent.Yep. All good points Scott No Mates.
The property itself looks like a distressed sale. It was purchased July 2011 at $247k in a falling market and now is back on the market at $255k five months later! Dreaming!
It’s a slow market, 90 days on, with plenty of stock on the market so I thought that if approached the vendor directly we could cut out the deceptive agent and create a win win for both parties.
I’ll have to weigh up the benefits and draw up a battle plan.
II approached an agent I didnt like, told him what I was looking for tried to sell me houses I wasnt really interested in , but never mentioned the one I was intererested in and told me a whole heap of crap. I promptly went to the house I was interersted in the owners were packing up, said they were desperate to sell as they had to relocate, couldnt pay the bank and the rent for the new place. Told them about the agent, they said they wondered why they hadnt got any inquiry. I made an offer with some conditions they accepted and told the agent they were taking the place of the market. Same day went to some rental opens, interviewed some renters and signed up some tennants, who I found out latter were very close friends of the dodgy agent. I waited for months for the mud to hit the fan but never heard a thing. They never introduced me to the vendor even though they were obligated to.
Yep similar story crusty so I think it’s worth a punt.
If the vendors are motivated like I suspect they are then they should be receptive to a serious buyer with the added bonus of no commission to an agent…it makes good sense in my book and a win win for both parties.
I might run it past my solicitor first and make sure I’m protected then give it a run.
Just a clarification regarding an Agent having to introduce a client to the vendor to get their commission. In NSW (and I think all other States), if the Agent holds an 'exclusive' listing agreement, and a buyer enquirers about a property that is the subject of this 'exclusive' agreement, during the term of the 'exclusive', the Agent may claim his/her commission, i.e. the Agent doesn't have to physically introduce the buyer to the property.
If the listing agreement is a 'sole agency', an 'open agency' or even a 'multiple listing' the Agent has to physically introduce the buyer to the property (not the vendor), before s/he may claim his/her commission.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
I have done this a lot but never to cut the agent out of there commission. If you have the skills you can get a good deal. If you approach the vendor while an agreement is in place with an agent the agent is still legally entitled to his commission. If the vendor does this then they will be liable for legal action. If it was done at your selection you could be as well. Personally I find direct Ned is great and works well but I never try and get the owner to avoid the agent. However it is within your rights to contact the vendor direct.
Nigel Kibel | Property Know How
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Thanks for your advice and input fellas.
I’ll certainly have a chat to my solicitor and get some clarification on this one before I jump in.
Cheers,
Jack
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