Hi guys,
Has anyone had experience with the following scenario:
We have an investment property which has been on the market for 5 weeks (selling privately) and have been approached by a RE Agent who is located in the area our property is in, and has a good sales track record.
He asked how much we want in the hand? I told him…. so he said he would like to have a go at selling it and bumping the price up so he gets SOME commission that way……….sounds like a win win situation doesn’t it!!!!! He also mentioned if we sold it privately ourselves in the mean time then we don’t pay him commission?!
Has anyone done deals with RE Agents such as this or anything similar. We are talking WA Market where listings are short so RE Agents are scraping the barrel.
He has sent me a Non Exclusive Agency selling agreement which I can alter to suit apparently. What do you think…Has he sent me the correct written authority or is there a special Open Listing one that I should have…..or are they one in the same?
Have tried Consumer Protection and they are useless, they can’t answer my question……so any help or knowledge would be helpful.
cheers
sq[blink]
sounds like a good deal to me!
ring the real estate institute in SA to find out about the correct forms.
who pays for advertising?We buy properties in Adelaide. No Agent Fees.
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http://www.renttoownau.com/ http://www.vendorfinanceau.com/Hi Suzie,
This agent is following a very common lead generation strategy.
I agree with Dr X, make sure you don’t get bitten with an advertising charge.
Also be careful that the agent does not start conditioning you down on price once you have sign an agreement. The common practice is to get you signed up to an agreement by stating a sale price that they think you will be happy with (which they have no accountablility to achieve).
Then they start getting people to come through your house and make comment. The agent will usually start saying people are not liking things about the house and you should drop the price because the market is telling you it’s over priced because of all these issues and ALL these people are saying it. The thing is, if it is an ‘open house’ listing, most people will not really be serious about buying the house anyway (they’ll be just looking out of interest or to research). When the house reaches an easy to sell price then, bingo!! the agent gets his/her quick commission.
If the agent is truly confident of doing better than you can, then make sure the base level of the sale range on the agreement is the agents commission amount above your private sale price. (That’s if the agreement layout is the same as NSW RE agreements).
Just be careful that the agent doesn’t destroy the perceived value of your house by advertising it widely with a continually reducing price.
I have a couple of questions for you that will make a few things clearer for me-
1. What has been the response been like to your private listing?
2. Do you know what the true market value of your property is (which is most reliably obtained by a professional valuer)?
3. Do you display a private for sale sign out the front of your your property ?
I don’t know how much you know about the successful strategies for selling privately but I have seen some good information around lately. I will try and find it again for you.
If you decide to go with the agent just make sure you go over the agreement with a fine tooth comb. Remember when it comes to realestate and business ‘It matters not what is said, it matters what is written down and signed'”
Hope this helps
Todd Burns
http://www.freepropertyhelp.com.auHi Suzie,
It’s me again. I just wanted to ask- Has the agent got a good sales track record becasue he achieves the best price possible for the vendor or because he sells lots of properties? If he sells lots of properties it could be because he is good at lead generation and downward price conditioning which it turn gets quick high volume sales.
Todd Burns
http://www.freepropertyhelp.com.auHi all and thanks for the feedback.
Todd I have put on the agreement that the Agents commission is (dollar amount negotiable) and I also have put on the contact that he has the authority to act as our selling agent UNTIL FURTHER NOTICE (24 hours notice only is required).
Selling privately – yes I’ve had a lot of bites, but no-one has shown any real interest. We haven’t put a sign out the front but have had it advertised in local papers.
sq
Hi Suzie,
If I was going to sell privately I would get decent looking sign out the front as a priority. The people that are most likley to pay the most for you property are the ones that go driving around the streets looking in the area where they REALLY want to live. They will generally pay more becasue it’s more of an emotional decision rather than a purely price based one.
The agent should have put an estimated selling range on the agreement. If he did , was the lowest end of the range way below what you think you can get for the property?
If you go to the property search page of my website you can find a list of private sales websites that you could choose to list on if you wanted to get some internet exposure.
Todd Burns
http://www.freepropertyhelp.com.autrue the agent that sells the most properties may not get you the highest price!! They are probably the best at making both parties conceed until agreement is reached – it is a different thing really.
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