What are the implications and process for going directly to a vendor during an active listing with an agency, or shortly after the listing has ended without a sale?
Chances are the agent has a contract in place to sell the property within a stipulated timeframe – so if sold directly to you, they're probably still entitled to a commission. Any particular reason why you're trying to cut out the agent?
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
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Even if you approach the Vendor after the expiry of the agency period the agent will still have the right to claim a commission as you were a willing and able buyer and approached the agent for information during the agency period.
As Jamie mentioned i can't see why you would want to cut the agent out other than possibly to try and save the commission element off the purchase price.
That assumes of course the Seller will deal with you or the property hasnt been sold.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Qlds007 wrote:Even if you approach the Vendor after the expiry of the agency period the agent will still have the right to claim a commission as you were a willing and able buyer and approached the agent for information during the agency period.My take on it too however where a sole listing arrangement doesn't exist the listing agency may only have a right to the listing fee and not the agents fee component. If I remember correctly there 3 components to a commission fee; agency fee, listing fee and agent's fee. You may only be negating the agents component. I'm sure someone could clarify.
Not 100% sure but NSW agency agreement is either for a % or an agreed amount, things like marketing costs are additional and paid prior to listing.
I have over the years spoken directly with Vendors. I have done this for myself and for clients. However it has nothing to do with commission. The agent managing the property has a legal right to get paid. My motivation is to find out the vendors real motivation for selling. In many cases an agents main job is to protect a vendor from themselves. If I get to talk to a vendor directly I can generally find out why they are selling and what they will take.
Nigel Kibel | Property Know How
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Thanks Nigel.
So if I was to approach the vendor after the end of the listing (to correctly ascertain his/her motive) what would be the correct etiquette, and are you then obligated to notify the previous agent?
I'd just keep it informal and ask the owners if they're still interested in selling – and from that conversation, you'll find out whether or not the agency still has the rights to the listing. Just go with your gut.
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]
Right, thanks Jamie.
Should i just call him up in such an instance – ie. really informal?
Also, is asking the agent how much longer he is likely to be listing this property for likely to set alarm bells ringing…
…or alternately create an impetus for him to get the vendor to lower his expectations whilst the property is still listed with the agency, in the hopes of still snaring a sale?
Hi Roberto
Some of your questions can be answered by knowing the difference between types of Agent Listing Agreements used.
In NSW an Exclusive Listing entitles the Agent to get paid their commission if you speak to the Agent or the Vendor about the property during the term of the Listing Agreement. Even if you come back after the 'Exclusive' has expired and buy the property, the Agent will be entitled to their commission. This is why most Agents try to insist that all sellers sign Exclusive Listing Agreements
In comparison, in NSW, if a vendor signs a Sole Agency Listing Agreement, the Agent has to 'physically introduce' the buyer to the property, during the term of the Agreement, to be entitled to their commission.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
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