Negotiating with agent after signing agency agreement.

[luce.rocks]

Hi folks,

I signed an agency agreement about 2 weeks ago (well, my mum did, with POA from me) to sell some land. We agreed that we wouldn't start the advertising campaign until next year.

Now it looks like my mum has found a buyer (one of her friends).

I know it's probably within the agent's rights to insist on the whole commission being paid, but is it common practice to negotiate in a situation like this? Or would it be poor form?

The agent hasn't had to do too much yet, hasn't spent any money on advertising, etc. He did take one potential buyer that he had on his books out to look at the land (they didn't like it).

Anyone here negotiated commission after signing an agency agreement?

Cheers, Luce

 

[Lil Skater]

It's worth asking the question!

They are entitled to their commission, but if all goes through I would expect a discount as they haven't advertised. The rest of the process is exactly the same re: contracts etc, so I wouldn't expect any discount there.

 

[luce.rocks]

It's worth asking the question!

They are entitled to their commission, but if all goes through I would expect a discount as they haven't advertised. The rest of the process is exactly the same re: contracts etc, so I wouldn't expect any discount there.

Thanks

 

[ChrisA1]

It's worth asking the question!

They are entitled to their commission, but if all goes through I would expect a discount as they haven't advertised. The rest of the process is exactly the same re: contracts etc, so I wouldn't expect any discount there.

This is how my agent worked - he had his base commission and detailed each cost of the advertising and other processes (drawing up contracts etc). Since I did the contract myself (well I worked directly with the conveyancer rather than asking the agent to develop it for me) and I asked for a change in the advertising arrangements, the overall cost was lower.

 

[Xenia IM]

Luce - the agent is entitled to full commission as it is their listing.
The only thing you can do is wait until after the advertising period and cancel the contract if they have not sold it by then.

They may even find a better buyer than your friend.

 

[skater]

I'd ask the question. You've got nothing to loose.

BTW, we recently sold a property. We told the Agent that there was a chance that the tenant might like to buy it. Their response was that if the tenant buys it, no commission would be payable, as they didn't find the buyer.

 

[jmillar]

Hi folks,

I signed an agency agreement about 2 weeks ago (well, my mum did, with POA from me) to sell some land. We agreed that we wouldn't start the advertising campaign until next year.

Now it looks like my mum has found a buyer (one of her friends).

I know it's probably within the agent's rights to insist on the whole commission being paid, but is it common practice to negotiate in a situation like this? Or would it be poor form?

The agent hasn't had to do too much yet, hasn't spent any money on advertising, etc. He did take one potential buyer that he had on his books out to look at the land (they didn't like it).

Anyone here negotiated commission after signing an agency agreement?

Cheers, Luce

You agreed to pay them X amount for doing a certain job by signing an agency agreement (contract). You don't have the right to pay them less, just as they don't have the right to ask for more than agreed.

It's poor form to ask them to cut their fee but under certain circumstances they may agree. Your best bet may be to pass your mum's friend's details on to the agent and let them deal with her. They will more than likely get a better result than if you tried to negotiate with her (especially if they're a friend), plus they may agree to cut the fee if you're giving them the buyer.

 

[WilliamB]

Definitely ask the question. Everything in real estate is a negotiation.

I believe legally they have the right to take the full commission load, but I'd be surprised if they did, especially with the chance you'd just let the agreement lapse and sell privately anyway. It's a risk on your end though, as your private buyer may fall through. The urgency to sell is also an important consideration.

I think if the agent is a reasonable operator, they would have to consider that it's better to get part of a quick sale, than potentially nothing.

I have been involved in a purchase where my agent introduced me to the selling agent, and shared the commission I think 50:50.

That is a very similar situation.

 

[luce.rocks]

The agent agreed to drop their fee from approx 10k to approx 7k. He was more disappointed with not getting the chance to market it. Good lad

 

[Lil Skater]

The agent agreed to drop their fee from approx 10k to approx 7k. He was more disappointed with not getting the chance to market it. Good lad

Great outcome!