RE comission

[Mike F]

If you haven't signed up the agent yet, why not put a sign up with your own number on it, and see if you can catch the people looking next door?

I would do exactly as Wylie says - (if you havn'e already signed), find out from the web or newspaper ad when they others are having an open inspection, and put out an open for inspection sign out at the same time. You can afford to discount your place by a couple of grand and end up keeping 15 or so for yourself.

I have done this exact thing with a rental property. The unit next door was up for rent at the same time as my place. I saw the open for inspection time on re.com.au. At the same time I put out a 'for rent' sign. I got about 4 times the response than to my newpaper ad (private landlords not allowed to adveretise on re.com.au). Found some great tenants that have been in the property for 2 years, and the advertising (or management) didn't cost me a cent

 

[twobobsworth]

Nice info there Kenny...Of course if one engages another exclusive agent the commission goes there however was unaware if it comes off and the buyer came (in the first instance) from the original listing rea, that this was the case. Some interpretation and shades of grey and legal stoush might enetred into, however that usually costs more in legalities in the long run, and greater losses.

I wonder if it's similar in other states?

Any non Victorians care to share?

You include a special clause in the contract that transfers the liability of any claim of commission by another agent from the vendor to the purchaser.

 

[spos]

Hi Mike,

totally agree with you on this, as mentioned in my previous post. In terms of private landlords advertising on realestate.com.au, that is actually possible. You can use landlordschoice.com.au, they are licensed agents, but just get you tenants, they dont do ongoing property management. I've used them before to get tenants, and for $199, you get an ad on realestate.com and domain.com, a tenancy database check and tenancy documentation. Their website isn't great, as I've mentioned in another post, but the service is!

 

[Propertunity]

You include a special clause in the contract that transfers the liability of any claim of commission by another agent from the vendor to the purchaser.

Yes, that clause seems to be a standard condition now, but apart from that, when tested in the courts, a claim for commission by a REA hinges on which agent was "the effective cause" of a sale. So you are reasonably safe now with these cases having set an 'effective cause' precedent.

 

[Piston Broke]

I will get a flow on from their inquiry list from the other 2 houses as there have been a LOT of interest.

would'nt just put a big sign in the front yard that says:

"House for Sale. Deal direct with owner, save commission"

and price it 10k less.

 

[Nathan]

I agree with everyones viewpoint here.

I would pay them their comm if sold in first day, there worth more $$ if they sell in first day.

I thought you would have known his stuff already evand?

 

[cu@thetop]

I would pay them their comm if sold in first day, there worth more $$ if they sell in first day.

How so Nathan? May not be the best price.

 

[andrew_de_a]

Well in theory how would you ever really know if someone has paid the best price???

 

[evand]

know what stuff? You can only learn from asking questions, I have no problem with that.

In my business experience everything is negotiable. Nothing is permanent and nothing is temporary.

I agree with everyones viewpoint here.

I would pay them their comm if sold in first day, there worth more $$ if they sell in first day.

I thought you would have known his stuff already evand?

What i did is raise the sale price on the RE agreement to make it a bit harder for her to earn the comm so easily. She had written a range from 645k - 660k .

I just put a line through the $645k and sent it back to her. Havn't heard back from her.

 

[Marko Legija]

Buyers buy property for how much they think its worth, sellers do not sell, therefore I dont see how one can work harder for their commission.

But if you know better, sell privately. As long as a house is cleaned up and priced around market value, it will sell itself.

Im starting to think the only reason why real estate agents are still numerous as they are today is because they are needed to bring (condition) the vendors expectations down to Earth. Other than this, I dont see what value they bring to the table.

 

[andrew_de_a]

Marko, ask two of my vendors who achieved 150k and 300k over reserve yesterday at auction. Do you think the house would have achieved this by itself?

 

[Marko Legija]

Marko, ask two of my vendors who achieved 150k and 300k over reserve yesterday at auction. Do you think the house would have achieved this by itself?

What was their final sale prices?

 

[andrew_de_a]

I don't understand the relevance of the question.

 

[Marko Legija]

I don't understand the relevance of the question.

To put these sales into perspective i.e. were they 5%, 20% or 40% more than expected? It makes a big difference.

In fact theres so many variables why houses sell for above or below their sales prices or 'reserve', it's not even worth discussing.

You have every right to claim these properties sold for what they did because of your effort, but it's just as likely you were responsible for mispricing them. One can never know.

 

[boods99]

I don't understand the relevance of the question.

When you say "reserve price" are you meaning the price used to market the property or the actual reserve set by the vendor?
If it was the marketing price...well, we don't need to go there, its been the subject of many threads.

If on the other hand it was the vendor's reserve price, I notice that you are in Vic, and apparently its going ballistic over there, so IMHO a savvy vendor selling their own property may well just have been able to achieve the same result...it's the same market afterall.

Boods

 

[andrew_de_a]

When I say reserve I mean reserve. We'll agree to disagree on your last point though.

Mark, prices were 1.5 mil and 1.4 mil