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
Hi Micky
I'd suggest you meet all four of them, be very polite and friendly and show them the four properties you are about to list on a sole but not exclusive basis.
Listen politely as they make their pitch. Once they've completed their pitch, tell them that due to the size of the sale to are asking the four agencies (let him or her know who they are), to make a written proposal to you by 5pm Friday and that this proposal should included a fixed charge quotation for their services.
Should be good for a giggle
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Thanks Paul, i like your style!
Hey MickyMouse,
Pay peanuts, get monkeys.
I thought that the motivation would be to sell the properties for as much as the market would stand, not see how much you can save in doing so. Any agent who would negotiate the commission just to get the listing would be questionable to me as to wether they could negotiate the best price on the sale for me.
Jon
Hi Micky
DIscussions on agents always get interesting responses. WeI've just had a 15 unit site to sell – had it with 3 agents for 4 months, they averaged 6 lookers each weekend – no sales. We took over ourselves – sold 7 in the first weekend and the rest in 4 weeks. My opinion is that just because you pay a good price doesn't mean an agent is going to do any better for you. In my experience I've done this because agents have argued that they will do a better job for the full commission. What a load of rubbish! Either they're prepared to sell you place for what you offer or they're not. At the end of the day, they want a sale as much as you do. Just because you pay them more doesn't mean they're going to negotiate any harder for you and if people think that they will, I think they're sadly mistaken.
We negotiated commissions on another site – got a great agent who made some sales in a timely way (still managed to sell most of this site ourselves too!)
I think you're right – when you have got multiples to sell you can negotiate. They'll still only spent a given amount of time yet they have multiple sales to gain from. Remember you will still have to pay for the marketing as well.
I'd make a time with all four – ask them for comparables (documented) and references and ask them to show you their planned campaigns for your properties. Put them on a limited agreement to see how they perform. I'd also want a clause to say I could sell them myself – but that's just me!
Best of luck!
Guys,
An interesting day after meeting with 4 agents. All agents dropped their commissions by roughly the same amount, 1/4% which I have to say I expected at a minimum. No extras for marketing. Jon, you make a good point, but there are obviously economies of scale all round for an agent to sell multiple properties in the one complex. N
I must say, I was surprised with some of the USP's that the agents tried to use:
1. We will guarantee that we will do our best to get you the best possible price.
2. We have a 90 day contract, but if you are not happy with our service, you can rip up the contract.
3. We are open for 4 hours on Sunday
4. We advertise on 5 websites (of which most people have only heard of 2)
5. Our commission is fair because we really work hard for it.
6. No sale, no fee.All basically offered the same sales pitch, none prepared to back themselves on a set price, no one wanting to commit to a marketing strategy despite having had 5 days to put something together before the meetings. The next step is for all agents to submit their rates and marketing strategy to me by the end of the week for review by the other members of our JV.
Maybe I have unrealistic expectations, or maybe the agents I have picked are not representative of best possible sales providers in the market. I would like to think that what I have experienced today is not reflective of how all agents operate. Perhaps I just need to look a little harder to find the right one.
Micky.
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