Listing potential buyers in agency agreement?
- Thread starter mini2
- Start date
We've done this before, excluded a particular person who has shown an interest. That has never happened though. One case I remember well was neighbours to an IP we sold, loved the house, their daughter was looking to buy, yada, yada, yada. We noted on the forms that if that daughter should buy, no commission would be paid, but we put a date on it so that the agent wouldn't waste time marketing the place (one week from memory).
Of course, neighbour's daughter wasn't interested, or wanted it for a cut price.
Still worth doing if there is the possibility, but why not just offer to buy now before it is officially listed?
He knows how much I'm willing to pay, I also know how much he wants it for (he bought it at the peak of the market + overcapitalised with the poorly done reno) so the gap is about 15% of what he's after. That's why I want to wait till he get desperate.
On a $500K place, 15% is $75K. Selling commission (if Qld) would be $12,950 (+ GST???).
Maybe do the figures and put it to him that he is saving sales commission and meet somewhere in the middle.
How well do you know your "housemate"? Is he a friend as well? Do you really want to screw him down on price, or just pay what is fair? How much did he overpay and how much is it worth? What do you want to pay? Will it be awkward if he gets desperate and you swoop in with a lowball offer?
Just some random thoughts...
The agent already briefed him on the numbers, around $520-540k which is what Pricefinder is also suggesting. I think they're charging him 2.75% inc GST...so your numbers are almost spot on.
He just happen to be a workmate of sort, his wife's friend was suppose to stay where I'm now but that fall through so I took up the offer. I would prefer other buyers to the first round of low balling before I step in like a white knight kinda thing...or might bump up my existing limit by another $25k and hope they take it. The darn place still need another $20-25k worth of work to bring its appearance in line with the rest of the street.
He just happen to be a workmate of sort, his wife's friend was suppose to stay where I'm now but that fall through so I took up the offer. I would prefer other buyers to the first round of low balling before I step in like a white knight kinda thing...or might bump up my existing limit by another $25k and hope they take it. The darn place still need another $20-25k worth of work to bring its appearance in line with the rest of the street.
Be careful that the agent doesn't sign them up on a long agreement and work their price down and then finds another buyer to pay more than you and you miss your chance. The agent isn't going to want to work on it if he knows that for a price the vendor will just sell it to you and he won't get paid. A smart agent will put a time limit on you buying it. Agents are chasing the commission and will do what ever needs to be done to get paid.
Made him the offer informally and he's like oh there's this 3 bedders in the same suburb (arguably in a better presentation than his...and a far bigger yard which I actually need) for $470k. Now it's gonna be awkward in the house till he sells it or I move out 
It kinda hurt my bargaining position given he has a rough idea what sort of coins I'm raking in or what my other houses are worth. Chalk it up as a lessons learnt anyhoot.
It kinda hurt my bargaining position given he has a rough idea what sort of coins I'm raking in or what my other houses are worth. Chalk it up as a lessons learnt anyhoot.
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