Agent is the vendor.
- Thread starter Dylan33
- Start date
We've just completed 2 purchases recently where agents were selling their own properties.
In the first case, the agent had previously lost his licence. The property had had major renos - some renos approved, some not, - no council checks at any stage - no contract with HOW insurance - what a nightmare!
In the second case, no declaration of an interest at all, until an exchange. This may have affected the outcome of how we conducted negotiations (they played very hard ball on pricing). Our client was happy not to make a fuss, which he was fully entitled to do with the OFT.
Beware, is all I can say.
NO, that's our in-house training video! tsk - don't vex me, yeah!
i recognise the risks here but isnt there also an opportunity if the agent is also the seller?
being able to discuss and negotiate directly can surely have its benefits, especially if there is opportunity to get plans approved or subdivide or whatever.
i think it would in some cases be easier to discuss such things with the seller directly, even though he might also be an agent
being able to discuss and negotiate directly can surely have its benefits, especially if there is opportunity to get plans approved or subdivide or whatever.
i think it would in some cases be easier to discuss such things with the seller directly, even though he might also be an agent
I always wondered how the agent can disassociate themselves with the emotional ties of selling and spruiking your own property, given the conversations that tend to happen during the selling process.
Buyer says, don't like the layout and fitout of the living space, will cost us a bit to make right. So I can only afford $x
Agent/vendors says to himself, eh, my wife & i chose the design and fit out, what's wrong with it?! You schmuck....
Buyer says, don't like the layout and fitout of the living space, will cost us a bit to make right. So I can only afford $x
Agent/vendors says to himself, eh, my wife & i chose the design and fit out, what's wrong with it?! You schmuck....
Our only experience with an agent having an interest in a property was years ago. The property belonged to her mother which she correctly disclosed.
Only issue was that it was nothing remotely like what we were looking for - I reckon she was dragging every buyer she got her hands on through the property.
Marg
Only issue was that it was nothing remotely like what we were looking for - I reckon she was dragging every buyer she got her hands on through the property.
Marg
Dylan
Also talk with your mortgage broker
I had a customer last year bought through an Agent - and the not-so-bright-Licensed Agent had bought and developed the property through his own trading Estate Agency Company Ltd
The deal was then outside of Delegated Underwriting Authority and couldn't be approved by the lender. Lender's Mortgage Insurance was not best pleased. It all took a lot longer than it should have, plus the planning requirements for the subdivision changed and overall, settlement dragged on for nearly 18 months
We can all sell our own properties. Nothing wrong with that. But if the agent is the actual vendor - the true registered proprietor is the Licensed Agent, or as in the case of my customers, the Vendor Pty Ltd is the same legal entity as the Agent Pty Ld, get the deal confirmed by Credit before you proceed
Finance can take a lot longer than usual and the Vendor may not be sympathetic to any requests for extension of time for finance
Cheers
Kristine
Also talk with your mortgage broker
I had a customer last year bought through an Agent - and the not-so-bright-Licensed Agent had bought and developed the property through his own trading Estate Agency Company Ltd
The deal was then outside of Delegated Underwriting Authority and couldn't be approved by the lender. Lender's Mortgage Insurance was not best pleased. It all took a lot longer than it should have, plus the planning requirements for the subdivision changed and overall, settlement dragged on for nearly 18 months
We can all sell our own properties. Nothing wrong with that. But if the agent is the actual vendor - the true registered proprietor is the Licensed Agent, or as in the case of my customers, the Vendor Pty Ltd is the same legal entity as the Agent Pty Ld, get the deal confirmed by Credit before you proceed
Finance can take a lot longer than usual and the Vendor may not be sympathetic to any requests for extension of time for finance
Cheers
Kristine
Cruel, heartless barstools - that's how they disassociate themselves. A property is a property to them and other than the ultimate direction of the settlement funds not much should change.
Take on board the opportunity to use a BA if you are serious about the deal, at least someone else can play with the vendor & their emotions.
I don't see the conflict of interest. You either come up with a deal or you don't. I'd expect an agent to negotiate as hard as they can to get the vendor the best price they can, regardless of whether they're the vendor or now.
There's certainly a problem if they're the purchaser because they could withhold other offers from you, but this should be fine.
There's certainly a problem if they're the purchaser because they could withhold other offers from you, but this should be fine.
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