Advertising fees and do I owe anything to the agent?

Hi Everyone!

So I had an agent which I am very unhappy with (lets just say he put my property on auction and it was the only property in my suburb ever to pass in, but worst, I didn't even have registered bidders! in a crazy hot market). After taking down my ad (preparing to move to a different agent), I contacted him again and he convinced me to keep him on board and he will relist my property "from scratch" at his own expense (so it would be on top - but a normal ad, it's already going 'down' the list). In the weekend he pushed me hard to sell to someone at a price I wasn't comfortable with, who was in return making 'today or nothing' statements. It even got to a point where he yelled at me. I decided at the end not to sell and planning to move to a different agent.
My question is this: In the contract I paid a certain amount for advertising (which I will probably pay). He might be saying now 'but I paid a week ago and now you take it off etc'.

1. Can he demand monies for advertising done that he said he will take on his own expense? in any case I did not sign anything.
2. What is the REAL cost of advertising for a week on Realestate.com.au, domain.com.au etc? I am pretty sure its not as expensive as he puts it out to be.
3. What would you do if you were me regarding the property? I want to sell but it might be good to take it off the market for a few weeks and then put it again for auction with a better agent?

Thanks guys
 
If my interruption is correct.

1. Nothing - He said he would pay the advertising just happens you went for one week.
2. Depends on what the agents subscription is but it isn't based on a time it is online but rather the placement of the advert.

For comparison sakes from another agency -
Internet x 4 - Agent website; realestate.com.au; domain.com.au; realestateview.com.au cost is $820 inc GST
Please note: this cost includes highlight property for 60 days which is $624 of this cost

3. How many people have you had through and what were their comments?
 
I had about 40 through, their comment is that the apartment is small and doesn't have a balcony (around 70 sqm). That said, it's a well lit, modern 2 bed 2 bath unit, very new in a good building, the best location on the north shore, with two elevators, car space on title with a storage box, communal balconies with beautiful water views, new carpet and good kitchen and bathrooms (modern). Older apartments in the area (2 bed 1 bath) with balcony sell in auctions for above 900,000. There was even one with harbour views (however a normal 2 bedroom as well, nothing huge) for 1.17m.

Before the auction the opens were disappointing, much less people than after. And I think it's because he was giving a price guide of well too much (800,000) so they thought it would go in auction for 900,000 at least so didn't bother.
 
Question, what price are you hoping to achieve?

You're saying that other units sold for $900k at auction, and one even sold for $1.17m.

You think the enthusiasm was low because his price guide was too high at $800k, therefore resulting in people thinking it was going to sell for $900k and therefore not turning up.

Are your expectations just too high? Everyone thinks their property is better than someone else's... maybe it just isn't and you need to accept it.

Also 70sqm (assuming that doesn't include the car space of 18sqm) is actually quite a reasonable size... and if it isn't then 52sqm is rather small.
 
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I had about 40 through, their comment is that the apartment is small and doesn't have a balcony (around 70 sqm). That said, it's a well lit, modern 2 bed 2 bath unit, very new in a good building, the best location on the north shore, with two elevators, car space on title with a storage box, communal balconies with beautiful water views, new carpet and good kitchen and bathrooms (modern). Older apartments in the area (2 bed 1 bath) with balcony sell in auctions for above 900,000. There was even one with harbour views (however a normal 2 bedroom as well, nothing huge) for 1.17m.

Before the auction the opens were disappointing, much less people than after. And I think it's because he was giving a price guide of well too much (800,000) so they thought it would go in auction for 900,000 at least so didn't bother.

How many people turn up to the auction and were there any bids, if so what were they and what was the final bid?
 
Sorry read it before and forgot it when responded. How many people turn up though.

Never the less 40 people came through and saw better value elsewhere, sorry to be blunt and brutal.

I agree that might be the case, but I also think if the agent have told them 'above 700' then I would actually have bidders! The highest (and only) offer I got is 760,000. I dont think that's enough. Today the rates dropped again.. I think that would also help.
I am relisting with another agent now for another auction.. letting it cool for 2 weeks and then trying again.

It's 69 sqm internal + 18 sqm parking on title.
 
I agree that might be the case, but I also think if the agent have told them 'above 700' then I would actually have bidders! The highest (and only) offer I got is 760,000. I dont think that's enough. Today the rates dropped again.. I think that would also help.
I am relisting with another agent now for another auction.. letting it cool for 2 weeks and then trying again.

It's 69 sqm internal + 18 sqm parking on title.

Without knowing the comparables or all aspects it would be hard to know what the true value is. As an investor I would not be interested due to the lifts (just my strategy) perhaps your strata and admin fees are high, or low funds, or disputes, or extra levies, or bad outlook, or common walls looking into other walls, or too high up, lacking security, or many other things? You see I am picky, perhaps for me only 5% of units would satisfy my criteria, so there must be some reason? Are you sure you are comparing apples with apples, if so then it may be the agent?
When I look at a unit I look at all those aspects not just the internal area.
 
I agree that might be the case, but I also think if the agent have told them 'above 700' then I would actually have bidders! The highest (and only) offer I got is 760,000. I dont think that's enough. Today the rates dropped again.. I think that would also help.
I am relisting with another agent now for another auction.. letting it cool for 2 weeks and then trying again.

It's 69 sqm internal + 18 sqm parking on title.

So you are upset the agent listed at a price guide of $800k, but you think it was too much and think the agent should have listed as "above 700",

You received an offer of $760k, but its not high enough.

So what i gather from this is, you want the agent to underquote to generate false interest and hopes so that people will register and bid to a price beyond what it is really worth (however the figure of $900k to $1m+ is justified because other properties have sold for that). :confused: :rolleyes:
 
Real Estate agent

Hey guys,

I am an agent in the Parramatta area. Definitely in this market for sellers is best not to guide on price so you do not dismiss any buyers.

Ofcourse there will be buyers who have no idea on the area or claim to have no idea, then the agent can send them through comparables and let them decide on the value themselves. Marketing is also a big thing. It's all about perceived value etc etc. Also never let an agent pay for your property's marketing. Why would you want an agent to have vested interest in your property. His interest has shifted from getting you the best return to getting his money back he has paid for marketing.

Also, I get told so many times when speaking to buyers that agents don't even call them back. I understand why they don't in this market but its so stupid. Anyways, go with the agent that seems the most genuine and follow your instincts too. and if an agent can happy drop their fees for you in 2 seconds, what would they do the value of your property?

:) Thanks, thought to share my 2 cents
 
Hey guys,

I am an agent in the Parramatta area. Definitely in this market for sellers is best not to guide on price so you do not dismiss any buyers.

Ofcourse there will be buyers who have no idea on the area or claim to have no idea, then the agent can send them through comparables and let them decide on the value themselves. Marketing is also a big thing. It's all about perceived value etc etc. Also never let an agent pay for your property's marketing. Why would you want an agent to have vested interest in your property. His interest has shifted from getting you the best return to getting his money back he has paid for marketing.

Also, I get told so many times when speaking to buyers that agents don't even call them back. I understand why they don't in this market but its so stupid. Anyways, go with the agent that seems the most genuine and follow your instincts too. and if an agent can happy drop their fees for you in 2 seconds, what would they do the value of your property?

:) Thanks, thought to share my 2 cents

The Advertising fees will be covered in the higher commission as they are taking on the risk and you have no say in what the advertising is.

It could be stock board, their own photos (not pro photos) and a ad on RE.com (not highlighted or priority placement) and no paper advertising.

You get what you pay for with everything in life...
 
The Advertising fees will be covered in the higher commission as they are taking on the risk and you have no say in what the advertising is.

It could be stock board, their own photos (not pro photos) and a ad on RE.com (not highlighted or priority placement) and no paper advertising.

You get what you pay for with everything in life...

Yeah 100%. Also in areas where there is a lot of stock I high reccomend getting premiere listing. Yeah it's expensive but it's worth it. You don't want your Proeprty to come on the market And be down the first page, you also don't want your property to be on page 2 +. I think for premiere listing u get 21x more views than the standard listing
 
I've seen places where they end up on page 2-3 for a first listing, sometimes more.

I am a huge fan of paying the higher fees for priority listing rather than paper (unless my target is out of towners or the elderly).

However most FHB and second home buyers will use RE.com or Domain.com which is my target market.
 
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