Hey guys I was driving past lots of "for sale" houses today, and there were a few I was interested for my 1st Property. I than searched these homes up online and found the prices they were selling for. I was thinking would it be unethical to drop a letter in their mail box or give them a knock on the door for a private sale to negotiate a price lower so they don't have to pay agents commission? But also wondered if they are under a sales authority if they can cancel?
Is this a bad thing?, If this is very unethical please tell me it will be great to get some feedback. I thought as my 1st property I could atleast try this to knock off some thousands haha
Hiya
They'll have to pay the agent commission regardless. It's also a bit harsh IMO – whilst some agents are a pain in the a** – there are some decent ones out there who are simply making a living.
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]
No can do. They will still get the commission, and this is a little dodgy to say the least. The vendor has taken the agent to assist with the transaction, it's best to talk to them directly.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Hi Newbie
Whilst the seller is contracted to the Agent for the period of the Agency Listing Agreement, there is nothing wrong with them selling to you privately after that expires. My theory is if the Agent can't sell the property in that time then tough luck. No reason why you can't put a note in their letter box explaining that you're looking to buy privately and recognise they have an Agreement, but you're happy to wait till that expires and if they don't sell then they should contact you. I've done this numerous times and it works well. Good luck! T43
If you have seen the agents sign THEN put the letter in the agent may still have a claim. It's about who introduced you to the property.
There have been many court cases where people have changed agents but sold to a person first introduced by the first agent.
The seller needs to read the contract.
+1 Catalyst
Because your interest in the property is a direct result of the agents advertising the agent is entitled to their commission, even if you wait until after the agency agreement expires (eg. Sign comes down) to approach the vendor.
Depending on how long the property has been on the market the agent may be your best friend… Eg. If they are sick of having it on their books in an attempt to get it sold, they may talk the vendor down in order to get your low ball offer accepted and themselves paid.
+1 Catalyst
Because your interest in the property is a direct result of the agents advertising the agent is entitled to their commission, even if you wait until after the agency agreement expires (eg. Sign comes down) to approach the vendor.
Depending on how long the property has been on the market the agent may be your best friend… Eg. If they are sick of having it on their books in an attempt to get it sold, they may talk the vendor down in order to get your low ball offer accepted and themselves paid.
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