We've been looking at a property that we think is nearing the end of its listing (nearly 90 days) – without any serious interest.
What implications does this have for us as a buyer? Is the agent more likely to pressure their vendor to accept a lower offer, in the hope that they will get a commission, and that the seller will get a sale?
Am I right in assuming that this works in our favour?
Also, what is the protocol for approaching a seller directly, after the agent's authority over the property has expired?
(is this likely to get a better price, or not – keeping in mind that the seller would no longer have to pay a comission?)
How do you know the lease is about to expire?
In most states, if the agent introduced you to the property, even if you purchase it once the agreement has expired and no longer listed, the owner is still liable to pay the agent commission.
Agent would most likely already be looking to relist.
I would just take it as any other purchase. If you sense an opportunity, take it as you see it. These things don't always necessarily pan out running on assumptions.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Also depends on how desperate the vendor is to sell. If they aren't, then I doubt you could take advantage of the situation.
Do your research, figure out what the fair market value is of the property and take it from there. If the vendor isn't willing then move on.
Cheers
Tom
RobertoH wrote:We've been looking at a property that we think is nearing the end of its listing (nearly 90 days) – without any serious interest.What implications does this have for us as a buyer? Is the agent more likely to pressure their vendor to accept a lower offer, in the hope that they will get a commission, and that the seller will get a sale?
Am I right in assuming that this works in our favour?
Hi Roberto
It might – but it's all speculation.
Is 90 days normal in this part of the world? If not, have a chat with the agent and ask about why it hasn't been snapped up and what feedback is he/she getting. Has their been any interest? Why are they selling – what's motivating them?
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
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