Fixed price $3960 to sell my IP.

[Ray Brown]

Hi all,

This weekend, I'm doing an experiment, selling one of my IPs through an agent who charges a reasonable (nearly $4000.00 is reasonable?) fixed price for the listing regardless of the sale price.

The price includes internet listing on re.com.au, GST, a window ad (I think) and, well, the sale.

So lets just see how we go over the coming weeks. Will the cheap listing fail miserably? Would I have been better going with one of the big players in town and forking out $8400?

I decided the asking price of the property, not the RE agent. Low 300K.

I'm sure it's been discussed over and over, but do RE agents get too much money for what they do?

cheers

 

[Ausprop]

given average rep wages and the working hours etc I doubt it. it always seems like a lot to pay out though. I liken reps to sports people... the average ones earn scraps, then the cream of the crop earn an exhorbitant amount of money, yet somehow there is a ready and willing market ready to pay it.

 

[mitch]

l say , good luck to you Ray,

may l ask how you arived at the asking price and why are we using your price and not the agents ,assuming of course that they are different prices.

Did you choose this agent on fee only ? , have they been around long or just a new player in the industry ?

Knowing you only get one chance to make a first impression ,do you feel, if this dosnt work in your favor that the poor exposure you may get affect the ultimate sale price if you have to change agents at a later date ?, does this agent make you feel that your interests are coming first and we're in for the best price/result and not just get a sale?

Or is it that you figure all agents do the same job so they all will acheve the same price?

lm not taking sides but l need to know if a half price agent works just like a full price one .

regards Mitch

 

[agent 86]

Ray,

Sounds like the system forumite Kev Hockey is now involved with.

www.gogecko.com.au

http://www.somersoft.com/forums/showthread.php?t=24581

 

[Ray Brown]

..May l ask how you arived at the asking price and why are we using your price and not the agents ,assuming of course that they are different prices.

I took the highly scientific approach. I watched the suburb for the past three years and asked what I reckon someones willing to pay.

Did you choose this agent on fee only ? , have they been around long or just a new player in the industry ?

They have been around for a little while - and yes they are the cheapest.
If I was in the market for a surgeon, architecht or solicitor I would perhaps expect a better one with a higher fee. But we are talking about Real Estate Agents. Nice people some of them, but skills and education required to sell a house at market price in a couple of months? Similar to 'professional' car salesmen, poker players or taxi drivers.

Knowing you only get one chance to make a first impression ,do you feel, if this dosnt work in your favor that the poor exposure you may get affect the ultimate sale price

One chance? The house will sell - eventually. If I put a low price on it, it will sell quickly. If I put a high price on it, it will sell slowly.

I don't know about you, but when I'm buying a house, I generally ignore the sales pitch and concentrate on what I see to be the pros and cons of the property.

lm not taking sides but l need to know if a half price agent works just like a full price one .

regards Mitch

I'll let you know...

 

[LearningMan]

In my experience you usually get what you pay for.

Sales Agents are not a charity. They work for $$$'s just like everyone else in the RE industry.

Good luck !

 

[mitch]

I don't know about you, but when I'm buying a house, I generally ignore the sales pitch and concentrate on what I see to be the pros and cons of the property.



Gday Ray ,

no doubt you and l are alike in alot of ways , l for example , own my own home , have been a property inverstor for 14 years , have some renters and emotion went out the window long ago when it comes to buying IP.lf l miss out on this one , l can get another bargin next week.

Is the person who is going to pay top dollar going to be a savvy investor type ? Nope , the person that will pay the most money will do it becouse their heart will tell them this is the one !

this is why l think to go down the path of " the house will sell - eventually " aint gonna get you the best price mate.

l look forward to the feedback you get (or have to chase up ) from the cut price kid (thats your agent).

Regards Mitch

Did you wonder why this agent has to list on the strength of the cheapest commission in town ? Surely they arnt doing it as a community service.Just wondering , thats all .

 

[House_Keeper]

Ray,

Have a look at this book:
"Real Estate Without Agents" from Terry Rider.

If you live near your IP, why not sell it yourself? That will definitely be cheaper (and most likely more effective) than through an agent.

According to the book, most people can sell a property with a total budget below $1,000.

Cheers,

 

[Ray Brown]

If you live near your IP, why not sell it yourself? That will definitely be cheaper (and most likely more effective) than through an agent.

Cheers,

I would, and the last time I did sell privately. But this one is 750km away.

Heaps cheaper - I only wish private sales could go onto RE.com.au.

 

[Ray Brown]

Is the person who is going to pay top dollar going to be a savvy investor type ? Nope , the person that will pay the most money will do it becouse their heart will tell them this is the one !

this is why l think to go down the path of " the house will sell - eventually " aint gonna get you the best price mate.

The house is destined to be picked up by an owner-occupier. There is a bit of a mini boom going on there. So, 'eventually' might mean 6 weeks instead of 2!

Prices are heading up rapidly, so pretty soon, the house will be priced right.


Anyway, lets just see what happens.

 

[luce.rocks]

dumb question but: is this $3960 in addition to other commission (5% first 100K, 3% next 100K, 2% thereafter, etc.) or is it the sum total of what you'll pay this agent from go to whoa?

 

[Jacque]

I would, and the last time I did sell privately. But this one is 750km away.

Heaps cheaper - I only wish private sales could go onto RE.com.au.

You can list privately on Domain.com.au They may not be as big as realestate nationally (they actually get more hits in NSW than realestate.com.au- a little known fact) but hey, it's still a HUGE audience. It's the first thing I'd be doing if I was selling privately.

The other option, if it doesn't work out with this REA, is to do a sole agency agreement (not sure if it's called the same thing in Qld) where both you and your preferred REA are able to sell the property. If you introduce the buyer and subsequently sell, then no fee is payable to the REA. However, normal fees apply if he/she sells it instead finding their own buyer.

 

[Ray Brown]

dumb question but: is this $3960 in addition to other commission (5% first 100K, 3% next 100K, 2% thereafter, etc.) or is it the sum total of what you'll pay this agent from go to whoa?

Its dumb not to ask questions, I reckon...

Sum Total. Fixed price. No fine print.

 

[Ray Brown]

After three and a half weeks,

the property in question is under contract. 98% of my asking price.

How hard was that?


Not.

 

[Ray Brown]

In my experience you usually get what you pay for.

Sales Agents are not a charity. They work for $$$'s just like everyone else in the RE industry.

Good luck !

Charity?

Four grand for about 4 hours work?

You are damn right they aren't a charity.

 

[Buylow]

Recently sold our PPOR for over $1.1m...agents all up costs $4995 incl.GST
The sale price was at the lower end of what we wanted but we also got a quick sale (6 days) so we were happy with result.

 

[ggumpshots]

Hi all,

This weekend, I'm doing an experiment, selling one of my IPs through an agent who charges a reasonable (nearly $4000.00 is reasonable?) fixed price for the listing regardless of the sale price.

The price includes internet listing on re.com.au, GST, a window ad (I think) and, well, the sale.

So lets just see how we go over the coming weeks. Will the cheap listing fail miserably? Would I have been better going with one of the big players in town and forking out $8400?

I decided the asking price of the property, not the RE agent. Low 300K.

I'm sure it's been discussed over and over, but do RE agents get too much money for what they do?

cheers

You will pay $4000 for an internet ad upon sale. your not sure about the window ad
Uhmmmmmmmmmmmmmmmmmmmmmmmmmm....maybe a little expensive!!!!
Here is a response from 64 people but a few were agents!

http://www.somersoft.com/forums/showthread.php?t=20851
The answer is the agents arent doing what they should be.......generally...but that doesnt mean you cant find a great agent if you look hard enough

 

[Ray Brown]

I had hoped this post was going to be a shining example of how a cheap re agent is just as good as a full price one.




Bill for a grand worth of newspaper adverts, 4 months, one collapsed contract. No 'for sale' sign out the front. Agent won't return my calls. Won't even return calls of a potential buyer. what the???

Time to give them the flick I would say.

 

[Kristine..]

Hi Ray

Sorry to hear that your 'experiment' wasn't a shining success.

Never mind, perhaps in the four months the market has lifted a little bit and you will recover your expenses with a good sales result this time around.

Will you now list with a conventional estate agent with a well managed and accountable sales team? Most of the agencies local to me seem to have stable sales teams, which would indicate that they do earn a living and they can only earn a living by producing a result.

Good luck with the sale

Regards

Kristine

 

[Ray Brown]

Thanks Kris...

Yes, rather sheepishly, I will be contacting a larger well known firm next week for the sale.

I thought the same thing about the market firming in the 4 months its been listed.

Every cloud has a silver lining I spose.