Cutting out the agent

[Noodle]

Just wondering what success folk here have had with cutting out the agent during negotiations?

Specifically what I mean by this is taking a strong offer with cheque and 66W direct to the vendors solicitor telling them this is a take it now or leave it forever offer for their client.

Clearly you would never do this in a buyers market, but in a sellers market like it is in the lower price brackets in Sydney and particularly when the property is scheduled for auction and for owner occupier purposes, it seems like it could be a good way of preventing the agent from shipping your offer around to other interested buyers.

Anyone done this? Any success?

 

[travelbug]

As long as you were not introduced to the property by an agent there would be no problems.

If you rang the agent to get details of the property or if the agent showed you the property the agent is still entitled to their commission.

As you mentioned "during negotiations" I'm assuming the agent is involved so no!

 

[Noodle]

Sorry I don't mean so the agent doesn't get their fee. Just cutting them out by submitting offer direct to vendors solicitors, so the agent doesn't get time to shop around your offer.

As a buyer who cares about the agents commission.

 

[neK]

Its not the solicitors job to put the offer in front of the owner its the agent.

I highly doubt the agent would do extra work when they are not being paid, then risk the possibility of getting sued with some stupid claim if the owner then feels they could have sold it for more later etc.

 

[AlmostBob]

If you consider cutting out middle men, the vendor is the person to approach, not the solicitor.

 

[mrmonopoly]

I think alot of people have misunderstood what the OP is suggesting.

This is a very aggressive tactic which can prove effective IF you are willing to pay a premium price.

I would not recommend doing this ever as an investor but as a primary residence buyer if you feel the property is so unique and you will not find another like it, it can work.

It is the solicitor who exchanges the contract and this is why the offer is submitted direct. Agent still gets their full commission so they are not cut out of the process, just the negotiation.

Whilst I don't agree with this tactic personally as it burns ALOT of bridges, I have seen other BA's do this with occasional success.