Selecting an Agent to sell your property.



From: Sam Coster

I am offering an agent exclusive sale rights
to at least 15 units in his local area (just
outside Syd) over the next 12 months what
would be a realistic commission.

Enjoy the journey, its half the fun.
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Reply: 1
From: Dave :)

Hi Sam,

Exclusive rights? The agent should be very thankful to you. :)

A realistic commission is the commission you're happy to pay him for doing it. Some developers pay as low as 1.75% to a RE agent to sell an entire development. I'm sure there have been lower commissions than this.

For the sake of the exercise, lets assume the 15 units are worth $200,000 each. Assuming the commission you're prepared to pay them is 2%, and they sell for a total of $3M, that's $60K you'll have to say asta la vista to. A lot of cash.

If the agent is good, and you are convinced he'll market and sell your properties better than you could, go for it - you'll hopefully recover the commissions costs in the higher prices you get for them alone.

Personally, I'd try selling them myself. But that's just me...



"Nothing is more difficult, and therefore more precious, than being able to decide" (Napoleon Bonaparte)
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Reply: 1.1
From: Andrew Pennisi

Sam When you hire an agent you are hireing a negotiator. The best way to Know how good he is in a negotiation is to negotiate his fee. If he drops more than .25% he can not negotiate and you should keep looking! Look at it this way if he drops his pay easily what's he going to do when he gets his hands on your money? The second thing to do is make sure you get him to sign the new Consumer Protection Guarantee (as seen on A Current Affair last night)and if he wont sign it remember theses three words DON'T SIGN
If you want a copy of the guarantee e-mail me [email protected]
Good Luck and Be carful......
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Reply: 1.1.1
From: Dave :)

Whilst Andrew raises a good point, I disagree with him. If you have 15
properties for sale, and potentially more multiples to list in the
future, an agent would be crazy not to consider bending his own rules
and drop more than .25% to obtain the exclusive listing. I know of
developers who have negotiated 1.85% commission. If there are 20 or
more properties to sell, I am sure it's a win/win for both.

You would stipulate, in no uncertain written terms, what is expected of
him in the sales and negotiation process. Just because the agent bowed
to your reduced commission request, doesn't necessarily mean he'll prove
to be a poor negotiator and get a bad sales result. He may simply be
looking further, at the bigger picture. I.e. repeat multiple listings,
property management rights etc.



p.s. Andrew, I missed the Current Affair episode last night. Can you
give us a summary of what the new Consumer Protection Guarantee is, what
it seeks to achieve, how it will address current problems etc?
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Reply: 1.1.2
From: Michael G


Can you attach the doc to a post here for everyone?

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From: Andrew Pennisi

The Guarantee covers 16 major consumer protection points. It's a powerful Guarantee. It forces the agents to honor their word and transfers the risk from the seller to the agent. It give the owner of the property things like:A limit on the time of the agreement, Allows the owner to cancel the agreement at anytime if the agent is conditioning, underquoting, breaching confidentiality,Covers insider trading. Should it be established that the buyer for the property was willing to pay more than the final selling price the agent will forfeit the commission, these sorts of things. It covers everything that can happen to rip of a seller or buyer. Agents have had it to good for to long this will even up the playing field
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From: Andrew Pennisi

Michael I only have a hard copy of it however you can email me or it is on the jenman web site
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From: Ray Hinton

Refer to


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