RE Agent Tactics

[bundy1964]

I just got back from the Saturday tyre kicking in my local area.

Auction 1 was an ex Housing Trust duplex with supposed approval to have another house built on the back. House itself had the roof water damaged and the new driveway would need the street storm water drain moved. Current rental was $155 a week till December. Vender bid was 175 K with no interest, then another vendor bid of 195 K that ended up being passed in. Was told by a friendly neighbour that the house was bought for considerably less a year ago.

Auction 2 was a double story house, layout was a little strange for most people viewing. Vendor bid of 275 K to start it off with one single bid of 280 K. After a conditioning interval on the owners a further vendor bid of 295 K was made and it was also passed in.

bundy

 

[abcdiamond]

Ive been wondering the following question for some time, but never thought about it at the right time to ask anyone.

When a property is not sold, but is passed in, what do the REA charge the vendor ?

 

[duncan_m]

Originally posted by abcdiamond
Ive been wondering the following question for some time, but never thought about it at the right time to ask anyone.

When a property is not sold, but is passed in, what do the REA charge the vendor ?

It depends on the wording of the agency contract.. generally all advertising is payable plus the Auctioneers fee..

Agents can be quite ruthless in extracting every last cent after a property has failed to sell and where the owner is disillusioned. And the owner is usually disillusioned because the Agent has got their hopes up of a huge sales price then dashed them becuase it was never achievable..

Watch out, some Agents will even graciously extend you a new corporate credit card (Visa etc), The advertising gets charged to the credit card there's no opportunity to dispute it.. the sales lines for this disgusting practice is that the card has a 55 day interest free period "you dont even need to pay us.. as soon as the house is sold you can pay the credit card off.. of course we're confident we'll sell it within 55 days!"..

Here's another trick.. if the property doesnt sell and they think you're going to need a tenant.. they'll defer even mentioning the advertising bill thats outstanding until they've got you signed up in a management agreement for the tenancy..

 

[asy]

Originally posted by duncan_m
Watch out, some Agents will even graciously extend you a new corporate credit card (Visa etc),

Who does this?

asy

 

[mmerlin]

Originally posted by abcdiamond
Ive been wondering the following question for some time, but never thought about it at the right time to ask anyone.

When a property is not sold, but is passed in, what do the REA charge the vendor ?

Earlier this year a friend of mine decided she would sell her house in Hampton (VIC) and move to Sydney

Agents had the auction lined up ready to go, did advertising etc.

She had a change of circumstances and a few days before the auction she changed her mind and told the agents to cancel the auction.

Her total bill from the agent for advertising, auctioneers fees, etc was just over $20,000

She had to get a loan out to pay for her non-auction.