Offering agent side commission

[strongy1986]

Is offering an agent a seperate commission on the side when purchasing a property illegal?
Looking at buying a bit of land which in real terms is probably worth nothing. Want to put in a low offer but think the agent will just decline it because for the commission they will receive it is not worth their time.

Any advice would be appreciated

 

[Lil Skater]

Short answer, yes.

 

[Propertunity]

Yes, the agent is unable to legally accept spotters fees, kickbacks etc.

 

[willair]

. Want to put in a low offer but think the agent will just decline it because for the commission they will receive it is not worth their time.

Any advice would be appreciated

Don't worry what the agent thinks,because you never know till you ask the question,the vendor may have to sell,plus you have the control you walk or sign..

 

[Scott No Mates]

As noted above, it is ILLEGAL to offer the agent a secret commission (yes there is an act of law against this type of action). The agent would not be selling the property if it was of little or no value to them, whether they get $1 or $1M in commission, it is not of your concern and trying to compromise the agent's position could leave you out of the picture altogether.

 

[Jtkumnick]

Dont worry about the commission the agent gets, anything is better than the nothing that the agent will get if it doesnt sell.

the agent will be happy to have an offer. Unless your offer is so low using the lack of agents commission is an excuse and the real question is "am i comfortable offering this low an amount?".

 

[Jtkumnick]

completely illegal. people still offer it all the time- no one would accept it. the costs to do so and get caught would outweigh any benefit.

If you like spending money, you could employ a buyers agent to get it for the lowest price possible?

 

[Jtkumnick]

Dont worry about the commission the agent gets, anything is better than the nothing that the agent will get if it doesnt sell.

the agent will be happy to have an offer. Unless your offer is so low using the lack of agents commission is an excuse and the real question is "am i comfortable offering this low an amount?".

SORRY- This one ended up on the wrong thread

 

[strongy1986]

Thanks for the responses. I was pretty sure this would be the case.
To give you an idea of why I would ask the question, an average house in the area would sell for about 50k

 

[AlmostBob]

Thanks for the responses. I was pretty sure this would be the case.
To give you an idea of why I would ask the question, an average house in the area would sell for about 50k

the agent will be expecting the commission to be lower, after all, the agent is the one that posted the ad, with the price, for the vendor with whom they have a contract specifying commission

nothing edit: for you /edit: to worry about,

edit2: we worried whether the agent got a reasonable return too, till we got to know 'our' agent, and she told us how high in % the commissions go as the price gets lower

 

[Terry_w]

The agent may have a higher percentage commission to make up for the small prices.

If you were to offer side commissions you would be breaking many laws, possibly the Crimes Act and a few more.

 

[JWR]

Just offer a low amount. Worst they can say is no.

Agent prob will be waiting for the next meal to arrive as he won't get many selling properties at 50k a pop!

 

[Scott No Mates]

Sheeez... the property is only $50k why quibble?

 

[AlmostBob]

Sheeez... the property is only $50k why quibble?

because $1K off $50K is 2%
quibble amounts are a large part of a cheap buy
its always good to get it 2% less
who wouldnt try 10K off $500K
better my pocket than theirs,

 

[Scott No Mates]

More in relation to the preparedness to pay the agency a bribe & offering a lower price rather than offering the greater amount, not so much as not negotiating the best price.

 

[evand]

Ask the agent first if he is interested in selling it. If not, go straight to the vendor and let the agent know you are.

If you want it, buy it. Don't do side deals with the agent.

 

[Jacque]

The only agents who would collude with you as a buyer here would obviously be those who don't mind if they're banned and lose their licence.

http://www.theage.com.au/articles/2003/04/10/1049567807733.html

You also need to consider your own ethics and the vendors position.

 

[strongy1986]

The only agents who would collude with you as a buyer here would obviously be those who don't mind if they're banned and lose their licence.

http://www.theage.com.au/articles/2003/04/10/1049567807733.html

You also need to consider your own ethics and the vendors position.

I didn't realise that ethics came into consideration in the real estate world...

 

[AlmostBob]

More in relation to the preparedness to pay the agency a bribe & offering a lower price rather than offering the greater amount, not so much as not negotiating the best price.

oh, that was a headslap moment, didnt see what should have been sticking out like the south end of a northbound camel

 

[Jtkumnick]

I didn't realise that ethics came into consideration in the real estate world...

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