Non Exclusive/Multi Agent Success?

Hi All,

Curious if anyone here has ever used or asked for a non exclusive agreement (multiple agent) when selling a property? If so what are the pros and cons?

I'm selling one of my investments as I feel it has performed very well, but moving forward feel the opportunity cost of the capital over the medium term is probably best used elsewhere.

Anyway the property is currently tenanted on a fixed term lease at a good level so I was thinking of asking two of the top agents in the area to market quietly until the fixed lease is up. If I get a decent price I will sell, but if not I will put on a normal advertising campaign.

I'd prefer to sell off market as it avoids kicking the tenants out, 10 weeks vacancy (4 week auction campaign + standard settlement) and about $4K in marketing costs.

As I see it, the advantages of two agents is that they have separate databases and connections and basically are in competition with one another to get me a great price.

If an acceptable price isn't achieved then I'll simply give the listing to the agent who has delivered the best results, kick the tenants out and get the place dressed.

Look forward to hearing anyones experiences and recommendations.

Noodle
 
You know you can sell the property with tenants in the property?

Usually the selling agent will sit down with the tenants and explain the situation of what is happening and that they will try not to inconvenience them as much as possible. Along with explaining to them that their rental agreement will still stand for its term and that if the buyer is looking for an IP then they will let them know otherwise once the rental agreement expires and the new owner has taken possession they will need to find a new place.

The REA would normally only hold open inspections to assist getting the tenant on side and also ask the tenant that if someone requests a second inspection that they will try to get them through but otherwise will find if there is preferred days/time that would suit and give reassurance that there will be an agent (pref them) and that the REA will attend the second inspections and/or building/pest inspections and if they have any queries or want anything to give them a call.

I sold many rental properties this way when I was working in REA and it is very rare that you will have an issue I found if the agent explains the situation of what is happening and that their rental agreement is secure and nothing can be undone without their approval (compensation) and I have heard where a REA did this and asked if they wanted to buy and they said funnily enough yes and sold it to them... I was never so lucky, but never had issues with tenants.

Otherwise you just issues notices more than 24 hrs before inspections and they have no choice (not sure about each state).

I am never a fan of having more than one agency working on a property, I feel there are more cons than pros. There is plenty of threads about it but long story is two agents working buyers can use each agent against eachother and one REA might have a different story from the other. Plus whoever gets the sale will get the commission but it might not be the best price as you cannot use the buyers against each other as much.

Buyers are not loyal to a REA if one agent has the stock they want they will buy from that agent and not say I like the house but will not buy as it is listed with x.
 
You know you can sell the property with tenants in the property?

Usually the selling agent will sit down with the tenants and explain the situation of what is happening and that they will try not to inconvenience them as much as possible. Along with explaining to them that their rental agreement will still stand for its term and that if the buyer is looking for an IP then they will let them know otherwise once the rental agreement expires and the new owner has taken possession they will need to find a new place.

The REA would normally only hold open inspections to assist getting the tenant on side and also ask the tenant that if someone requests a second inspection that they will try to get them through but otherwise will find if there is preferred days/time that would suit and give reassurance that there will be an agent (pref them) and that the REA will attend the second inspections and/or building/pest inspections and if they have any queries or want anything to give them a call.

I sold many rental properties this way when I was working in REA and it is very rare that you will have an issue I found if the agent explains the situation of what is happening and that their rental agreement is secure and nothing can be undone without their approval (compensation) and I have heard where a REA did this and asked if they wanted to buy and they said funnily enough yes and sold it to them... I was never so lucky, but never had issues with tenants.

Otherwise you just issues notices more than 24 hrs before inspections and they have no choice (not sure about each state).

I am never a fan of having more than one agency working on a property, I feel there are more cons than pros. There is plenty of threads about it but long story is two agents working buyers can use each agent against eachother and one REA might have a different story from the other. Plus whoever gets the sale will get the commission but it might not be the best price as you cannot use the buyers against each other as much.

Buyers are not loyal to a REA if one agent has the stock they want they will buy from that agent and not say I like the house but will not buy as it is listed with x.

Thanks Big will.

Sorry my fault for not clarifying. The reason I am not marketing with the tenants in there is that the place looks like a dump and is desperate need of a repaint, touch up and proper styling. Selling off market would basically save us between $15-20K, once all marketing fees and vacancies are considered. That being said, we are very aware that it might be difficult to get a top price without the emotion of a full campaign. If we can't get the price then so be it, we will take to auction, but if you dont try you dont receive.

Point taken re multiple agents. I will have a look through the old threads and give this some more consideration. Any points anyone else has so more than appreciated.
 
The reality with multiple agents is that you end up with two or more agents that are focusing on selling their exclusive listings first and your property second.

Can you really blame them either? Their time and effort is better spent on the listing where they don't have a very realistic chance of the property being sold from under them.
 
If you are not doing a full advertising campaign then the property will not get the adequate exposure to get top price.

If it looks like a dump - it will reduce price even more.
Anything marketed to investors achieves poor results - most agencies market to home owners and if purchased by an investor then so be it. Home owners drive up the price and out compete the investor market.

If it looks like a dump and no agent has exclusive listing you will not get anyone dedicating time/effort to get it going - they would label it as C grade business - not worth the effort.

non exclusive agencies work well only for brand new properties that are purposely built by developers to be sold through investment seminars. The agents selling these usually do not do normal home sales - this is a more specialised area.
 
BTW
agents do sometimes partner up with other agents and split commissions for the introduction of a buyer. We have done this in the past and mainly during down market trends. Most sales now are gone at pre-open inspections so commission splitting is not needed. However it is something that is used in the industry and the deal is between the exclusive agent and their affiliate - nothing to do with the owner of the property.
 
If you are not doing a full advertising campaign then the property will not get the adequate exposure to get top price.

If it looks like a dump - it will reduce price even more.
Anything marketed to investors achieves poor results - most agencies market to home owners and if purchased by an investor then so be it. Home owners drive up the price and out compete the investor market.

If it looks like a dump and no agent has exclusive listing you will not get anyone dedicating time/effort to get it going - they would label it as C grade business - not worth the effort.

non exclusive agencies work well only for brand new properties that are purposely built by developers to be sold through investment seminars. The agents selling these usually do not do normal home sales - this is a more specialised area.

This is a very true the emotional buyer will drive prices up. An investor is all about the $$$ if the numbers stack up then they buy if the numbers are not as good they will move elsewhere.
 
Selling off market would basically save us between $15-20K, once all marketing fees and vacancies are considered. That being said, we are very aware that it might be difficult to get a top price without the emotion of a full campaign. If we can't get the price then so be it, we will take to auction, but if you dont try you dont receive.

Get a licensed value on the property and if you reduce it by 10-20k and find a buyer then why not, it is your call.

However where you get the best price is when there is multiple offers on your property as the buyers will compete and bring out their true best price.

If you are only dealing with one buyer they hold a lot of negotiating power but with 10 buyers you hold ALOT of power :).

Good luck.
 
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