Hello,
I have been looking for an investment property for a while. I have strict criteria, know what I want and what I want to pay for it. The reality is that what I am willing to pay is currently under market value however I believe a deal can be done. Its just a matter of finding the right owner/seller.
The reason I believe this is that I have been watching my selected market very closely. Properties have been on market for a long long time and prices are coming back dramatically. Asking prices are down about 20% on what they were last year and the selling prices are a further 7 – 10% under that.
The only thing I believe stopping me from doing a deal now is the agent commission. I believe if the owner/seller did not have to pay this. My offer just about on the money.
My other concern is, how do I know that the agent has passed on my offer to the seller?
I have a strong desire to contact the owners direct and make the same offer that I did via the agent to them directly. This is a possible win win for me and the seller but no so much for the agent.
I feel this technique is pro-active, clever and would attain me my desires however I also feel is probably unethical, likely to offend local agents and possibly even the sellers (small town, need to consider, particularly as I know may of them and have been discussing the market with them for a while, not so much learning from them but sussing them out).
I also know that the realestate agents in this area are not as good as they could be. I doubt they are having the conversation with the seller that would result in them actually accepting my offer. I.e. Properties in market are reducing by x each month, qty is increasing by x, rental properties avail are also increasing, buyers are few and far between. Actual selling prices are currently showing x % under the asking price etc. Do the numbers, consider how much you need to sell and find the offer is pretty much on the money.
I am happy for them to receive their commission but I am not happy if their commission is the difference between me paying $260 and $270 for a home. Or the difference between me getting the home I want or not.
Thoughts please people? Anyone find themselves in similar situations.
If you have seen a property on domain.com.au etc then the agent is entitled to their commission (providing that there is an exclusive agreement) – the marketing has worked. If it is no longer exclusive, go for it.
Owners do not inflate prices to cover the commission & marketing as it can compromise a sale.
Agents are obliged to pass all offers to the vendor, if you have proof that they have not, take it to fair trading. VCat
I’d be very surprised if an agent was charging $10k on a $270k sale, halve it and you might come close.
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