I am about to sell a property and have spoken to four agents, two of whom say they have databases and would have a buyer.
Of course, all are vying for a sole agency deal, however I am reluctant. Surely, if I give them all a general listing, if they have a buyer, they have a buyer and will sell the house. I believe there’s nothing like competition to get agents working hard, although agents will always tell you a sole agency is the way to go. I believe it is the quality of the agent that results in a sale, no whether they have a sole agency. Any thoughts?
go check out jenman.com.au or even read his book – Dont sign Anything.
Your better off with one agent, as you will have some control over them. Read the book – you will then know which agent is best for you and what issues to be wary of.
Only sign for 6 weeks, dont pay for advertising. (if they have buyers – why advertise).
Make sure you have a realistic price. Dont be enticed by the highest price the agent says. You should have an idea what you believe is the best agent in the area.
Agents won’t put much effort into an open listing. If they have a buyer they have a buyer, that is true. Many times though I have seen quality property sit there with several agents listed but being neglected because it is too risky to spend time and money on it.
Extensive list of new Perth property available for sale.Alternatively, become a joint venture partner in one of our property development partnerships – contact me to find out why our developments are unique. John – 0419 198 856
We once were approached through our solicitor by an agency who ‘had a buyer’ for a townhouse we had just settled on. We were interested in selling, so I said, sure, you can show the buyer through. Next week I saw that they had an ad listed in the Real Estate section of the paper!! That really rather irked me as I didn’t agree to any deal – it was ‘the buyer’ or we were keeping it.
Cheers
MelAn agent wants, needs to basically know that he is the only one selling it if he is going to spend money advertising the property. And that is only fair and reasonable.
On the other hand the vendor is entitled to receive assurances that the property will be actively promoted during the agency period (i.e. advertised and open house once or twice a week).
If an agency isn’t prepared to give such guarantee then look for someone else.
I note however that over the last ten years or so the trend has been that the agent asks for the vendor to pay for the advertising.
I don’t quite know how to handle that aspect.
Does anyone else have any ideas there ?
Pisces
According to Neil Jenman agents collect alot of $$$ from media kick backs. They show a RRP to you (and you have to pay it) and they are buying it for 20% less (or the media gives them a comission or kick back for it).
To chose an agent, and your not in a hurry to sell I would see which ones recommend a auction – and then I would steer clear of those (some times it’s easier to eliminate the bad, rather than trying to figure out the best).
I would pick up one of Neil Jenman books as it gives the reasons why with real life cases – quite scary reading some of it….
With advewrtising I would demand a written fixed cost for what they have in mind, then figure out how much you want to pay and then fix the costs round there (after you’ve taken into consideration what they think advertising will be).
But then I’ve never sold a house (and never intend too!).
Just be aware he is extremly negative on any type of real estate transactin that dosen’t involve a RE agent (like wraps, buying off plan direct from the developer, etc – although all these are quite legtimate).
Rgds.
Lucifer_auYou don’t have to pay for advertising. Everything is negotiable…
If you don’t pay for advertising, this ensure that only advertising that is likely to lead to a sale will be used… A good safeguard to have.
Cheers,
CarLover.
Personally I like the thought of just using one agent to sell a house.
If there are several agents trying to sell your house, they all are competing for the commission. They probably won’t care much about getting the best price for you …as long as they are the first one getting a buyer to sign the contract.
It’s not only about finding a buyer (any buyer) but the buyer who is willing to pay the best price.[
]Jenman really irkes me when he says agents get kick back from the media, or they charge the vendors more and keep the cream. I know a lot of agents and I do not know one who gets any sort of kick back and never have. What he is doing is scaring the public into using agents that use his system, whick he gets a kick back from. Mr hypocite himself. (Our ofice pays for advertising with all sole agencies)
Yes you are better to use one agent that you feel comfortable with and believe will work hard for you. Make sure you interview a few. That way you & your agent are incontrol of all offers that come your way. If the property is for sale the buyers will find it with the right advertising and the right agent. Open listings don’t cause competition because agents do not actively work them, if the have a buyer they have a buyer, if they don’t, well they are not fussed. I know I alway give 100% to the vendor who will commits to me, it is only fair.
Best of luck with your decision, people on this forum give great advise.
Jarrod
Jarrod Lane Real EstateMy suggestion (a little different), is to
1.know/learn the market value of your property before giving it to an agent to sell.
2.Choose one (1)agent based on your criteria
3.Set your reserve based on your research.
4. Incentivise the agent with a significant commission over your reserve price.ie Property Value (based on comparable sales) $500k
If you sell below or at $500k, provide normal commission (eg 2%).
If sell the property over $500k, give up to 50% of the price obtained over $500k.
For example, sell at $530. Commission would be 2% of $500k plus $15k.James
my two cents
No REA will work for two seconds on a multilist, they want sole agency. Then, when it sells, even if it is through someone you find, they still get paid.
Sole agency aggreements usually last for 3-4 months, and believe you me, that is a very, very long time.
I was half considering selling my own home, but the agent sold me on one of his lines- After all, a lot of what you pay for is our buyer lists, which we actively cultivate and nourish – or crap to this extent. Turns out he could not get one person to our open home the day prior to auction – and we had an impeccable 4bed, 2bath study and rumpus place, wanting about 350. We told him to get everyone he knew on his list (crappy houses sell for 300) through the open home. Couldnt get one, and he was hopeless at following up leads.
I would suggest- choose 1 agent, or even better, read jenman books, get a contract drawn up, advertise yourself, run your open homes and generate some interest. SOoner or later the offers will come in , and you go from there.
350k house costs about 12k in commission, plus you pay the advertising. Do you think a couple of house showings and following up on a few leads is worth 3 months of your gross pay packet? I dont, but unfortunately we all go that way because we all go that way. I would only ever do it again if I was out of area.
As for carlovers comment “You don’t have to pay for advertising. Everything is negotiable…”. Please, dont ever think there is a free lunch. You will pay for it, you will pay. Every ‘interest free period’ on every single item is loaded because of the interest free period. Whether it is through a higher commission or a crappier agent, your lunch will not be yours for nix.
When you pay for something out of the front pocket, it usually means there are less hands in your back pocket.
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