Hi Guys,
I have the unfortunate task of having to unload 4 x IP's. They are part of a joint venture which needs to be disolved. I have 2 x villas and 2 x 2 storey townhouses.
I would have though that this amount of property ($900,000 plus) should put me in a position to negotiate commissions. We are talking about a regional area, so it's not like these guys see million dollar sales every week. In fact I would suggest that many of them have never seen a million dollar sale in the region!
I have arranged 4 appointments on Monday morning with 4 agents in the local area. I have based my decision on these 4 on the quality of local advertising and the number of properties sold by these agents using realestate.com.au to view recent sales. I appreciate that realestate.com.au should not be the only source of information on recent sales that I use, but it's a starting point.
Does anyone have any tips on how I can ensure I have the upper hand in this situation?
Many thanks,
Micky
It reads like you are selling reluctantly have you considered finding another investor to buy in?
Agents rates are very negotiable, despite what they will try to tell you. They will try to stiff you with 3% or something like that.
I have heard of 1% commission, but that's very optimistic.
On a deal of that size, 2% is not unreasonable. That's $18k for doing virtually nothing.
Make 'em an offer of $15k flat, with no commission below a certain figure. This way they won't try to low-ball you, but don't expect them to get top dollar either. They'll just get a sale.
Tell them to pay for the advertising as well. Don't get sucked in to paying a grand or more for ads. The buyers are already out there looking in the windows, driving the streets and on the internet.
All you need is a photo in the window, a hundred flyers for the front desk at the agent's office (which they can pay for – they'll just run something off using their computer and printer) and a photo on the internet.
One more thing; don't let them sign you up for more than 60 days to sell the place. 45 days is even better; you know they won't sit on it and use it as a window dressing for that space of time. They want a sale and they don't have much time.
Put all your requests (as above or something similar) on paper and hand it to each agent you interview. This will show them you aren't negotiating and that is the deal you are offering them. Then say nothing and watch the reactions. If anyone says they have to refer to a superior in the office, you know you are not dealing with the main guy/gal, and they will come back with a counter offer better for them of course.
One of the agencies will take it – they need listings and without them they can't make a sale and get paid.
Thanks LA Aussie! That's the kind of "take charge" advise that I can put into practice. It also gives me the ability to reach a lot more real estate agents than just the 4 that I have booked. There are at least another 5 in the local area that I can approach with such a proposal in a timely manner, i.e. not sit with each one for an hour while they go through their spiel.
Wanelad, the joint venture was of a family nature, 4 couples involved, myself and my fiance are the only 2 that want to continue down the "wealth building" path. Everyone's says that there circumstances have changed, but the reality is that they are too short term focussed. We've held the properties for 3 years and they dont understand why their PPoR mortgages aren't paid off which was one of the goals, pay down our own mortgages and then start our own individual investment plans. There are also some other complications which I wont go into.
Thanks guys,
Micky.
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