Real Estate Agent Agreements & Sellin

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From: Ayesha Todd


I will start off with the scenario, We are selling our house, entered into a exclusive sales agreement with a RE agent for a three month period, they had a possible buyer though finance was shaky and someone came in with a better offer and put a holding deposit down, now in the meantime the sales agreement has expired so there is no contract in place between us the seller and the agency. It now looks like this sale is going to fall through because the buyers are having difficulties exchanging contracts on the place they are selling.
Still with it?
Well the agency says they possible have another buyer for the place but because the agreement between us and them is expired are we still liable to pay them a commission? If so, would it be the full commission or are we in a position to negotiate down?
Also through a bit of networking we may be able to put the current buyers in contact with someone that may be interested in their place but how do I contact the current buyers without involving the agents? Through the solicitors???
Any comments or advice would be great?
 
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How to WIN when you employ a real estate SELLING agent...

Reply: 1
From: Ross Sondergeld


Hi Ayesha,


How to WIN when you employ a real estate SELLING agent...


-----------------------------------------------------

Ayesha said, "Well the agency says they might have another buyer for the
place but because the agreement between us and them is expired are we still
liable to pay them a commission?"


Firstly, ignore the "we've got another buyer" story!

Secondly, you're NOT required to pay the agent, now that your seller agency
agreement has expired. (* Unless they introduced the actual buyer during the
term of the agency agreement.)

Thirdly, if they do have a "buyer" then... enter a SINGLE person selling
agreement. i.e. "The seller agrees to pay ABC Real Estate X% if Mr and Mrs
Johnson of 34 Smith St, Robina... enter an agrrement to purchase our
property within the next 30 days. In addition, this seller agency agreement
only applies to the buyer stated in this clause."
(* Seek legal advice before use.)


--------------------------------------------------------------

Then you said, "If so, would it be the full commission or are we in a
position to negotiate down?"


Anything is possible.

"Use a 2 + 10 AGREEEMENT"... What's that?

Basically, you agree to pay the selling agent 2% of the selling price.
PLUS... 10% of the price above an agreed value... OR 10% less of the agreed
value.

For example, let's say your property has a fair market value of $300k.

Ok... now let's say... the asking price is $330,000.

If it's sold for $310,000.
2% of $310k = $6,200
plus 10% of $10K = $1,000
Then the selling agent gets paid... $7,200

If it's sold for $290,000.
2% of $290 = 5,800
less 10% of $10K = 1,000
Then the selling agent gets paid... $4,800


It works brilliantly if your selling? The selling agent will NOW start
acting and behaving like your seller agent. (i.e. they're try and get a
good price... because they'll make more $$$.)

Pss... By the way, you can change the figures also... 2 +/- 20%.



You also said, "Also through a bit of networking we may be able to put the
current buyers in contact with someone that may be interested in their place
but how do I contact the current buyers without involving the agents?
Through the solicitors???"


Well... it's pretty easy... unless the r/e agent has out smarted you. (By
not putting the buyers contact details on the contract.)

Now have a look at the contract of sale... and get the buyers details. Then
introduce them to teh other seller. (* NO commission is payable to teh
agent.)


That's it for me...



Ross Sondergeld ~ Buyer Agent


P.S. Don't forget... i only BUY real estate. Therefore, i'm all for changing
the current real estate system.

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RE: How to WIN when you employ a real estate SELLING agent...

Reply: 1.1
From: Duncan M



Ross,

Great info.. thanks for the post.

Duncan.

-----Original Message-----
From: propertyforum Listmanager
[mailto:listmanager@bne003w.webcentral.com.au]
Sent: None
Subject: How to WIN when you employ a real estate SELLING agent...


From: "ross sondergeld" <buyerside@hotmail.com>

Hi Ayesha,


How to WIN when you employ a real estate SELLING agent...


-----------------------------------------------------

Ayesha said, "Well the agency says they might have another buyer for the
place but because the agreement between us and them is expired are we still
liable to pay them a commission?"
 
Last edited by a moderator:
How to WIN when you employ a real estate SELLING agent...

Reply: 2
From: Ross Sondergeld


Hi Ayesha,


How to WIN when you employ a real estate SELLING agent...


-----------------------------------------------------

Ayesha said, "Well the agency says they might have another buyer for the
place but because the agreement between us and them is expired are we still
liable to pay them a commission?"


Firstly, ignore the "we've got another buyer" story!

Secondly, you're NOT required to pay the agent, now that your seller agency
agreement has expired. (* Unless they introduced the actual buyer during the
term of the agency agreement.)

Thirdly, if they do have a "buyer" then... enter a SINGLE person selling
agreement. i.e. "The seller agrees to pay ABC Real Estate X% if Mr and Mrs
Johnson of 34 Smith St, Robina... enter an agreement to purchase our
property within the next 30 days. In addition, this seller agency agreement
only applies to the buyer stated in this clause."
(* Seek legal advice before use.)


--------------------------------------------------------------

Then you said, "If so, would it be the full commission or are we in a
position to negotiate down?"


Anything is possible.

"Use a 2 + 10 AGREEEMENT"... What's that?

Basically, you agree to pay the selling agent 2% of the selling price.
PLUS... 10% of the price above an agreed value... OR 10% less of the agreed
value.

For example, let's say your property has a fair market value of $300k.

Ok... now let's say... the asking price is $330,000.

If it's sold for $310,000.
2% of $310k = $6,200
plus 10% of $10K = $1,000
Then the selling agent gets paid... $7,200

If it's sold for $290,000.
2% of $290 = 5,800
less 10% of $10K = 1,000
Then the selling agent gets paid... $4,800


It works brilliantly if your selling? The selling agent will NOW start
acting and behaving like your seller agent. (i.e. they'll try and get a
good price... because they'll make more $$$.)

Pss... By the way, you can change the figures also... 2 +/- 20%.



You also said, "Also through a bit of networking we may be able to put the
current buyers in contact with someone that may be interested in their place
but how do I contact the current buyers without involving the agents?
Through the solicitors???"


Well... it's pretty easy... unless the r/e agent has out smarted you. (By
not putting the buyers contact details on the contract.)

Now have a look at the contract of sale... and get the buyers details. Then
introduce them to the other seller. (* NO commission is payable to teh
agent.)


That's it for me...



Ross Sondergeld ~ Buyer Agent


P.S. Don't forget... i only BUY real estate. Therefore, i'm all for changing
the current real estate system.



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