What amount shall I pay agent - for not going ahead with sale?

[Alex P Keaton]

Hi

I just got this sms from the selling agent who tried to sell my property last year but it didn't sell. I was all lined up to get her to sell my ip since it became vacant a few days ago but I had a change of heart and decided to move into the unit myself and make it my new ppor.

Anyway. I never did end up paying her any money for the work she did trying to sell it as well as the advertising cost. Back then we had an agreement that if it didn't sell for the amount I wanted I could take it off the market and try again another time but now it's not going to happen.

I feel like I should pay her something. How much would be reasonable do you think? Do you think I should cover her cost of the advertising from last time it was on the market?


Here is the sms

Hi

I understand, maybe you can give me something else to sell or manage. ? To minimize my losses.
Regards

 

[Propertunity]

I feel like I should pay her something. How much would be reasonable do you think? Do you think I should cover her cost of the advertising from last time it was on the market?

Contractually you probably owe her nothing (check your selling agency agreement). WFS (withdrawn from sale) properties are a risk the REAs take on.

If you want, you could cover her advertising costs out of the goodness of your own heart......and maybe something for her time - it is up to you.

 

[Ed Barton]

I agree with prop "Contractually you probably owe her nothing (check your selling agency agreement)."

If the tables were turned and she sold the property an hour after listing, do you think she'd offer to discount her commission because it was such an easy sale? Agents take the good with the bad - that's just how the system works. I wouldn't be giving her anything.

 

[S.T]

I think chocolates got the most responses in a previous thread about giving RE Agents stuff.

 

[tobe]

Just try and get her another client.

Dont give her any money. She is in sales, she knows the drill.

 

[spludgey]

Did she manage to get you an offer that you would have accepted? If so it might be nice to see if you can do something for her.
If not, I wouldn't bother. She wouldn't have gotten any commission either way.

 

[chrispy]

I have had to pay advertising when the property has not sold. Usually around $3k. I cover the Agent's costs. It has always been in the Contract.

Chris

 

[Big Will]

Check you selling agreement for what contractually you might be up for (e.g. selling commission, advertising and other stuff are separate in VIC). Of this you wouldn't need to pay selling but likely liable for the advertising and other stuff (e.g. mowing lawns, removal of waste although normally this is zero).

Other then that I think nothing as it is the risk they take and should be accounted for in their selling fees. If you feel like you should pay someone if they did work for a year I would prefer to give them gold class movie tickets/wines/chocolates just something small as a token of my appreciation as to me I believe in karma and wouldn't want to **** them off in the future if I wanted to use them again (if they are good).

 

[Alex P Keaton]

Thanks for the advice.

I'll check the agreement to see what the advertising cost was. I hope the cost is not too much

 

[Alex P Keaton]

I think chocolates got the most responses in a previous thread about giving RE Agents stuff.

hehe chockies


.....

 

[RyanMcHarg]

It is a risk that us agents take to take on listings that may not ever sell and may be withdrawn.

A more experienced agent will typically not take on advertising costs themselves or take on a listing that they don't think is saleable or aren't willing to promise a figure just for the sake of getting a listing and hoping the vendor will drop in price.

Unfortunately this is why costs can be so high to sell your property. As the others have said as agents there is typically a split with the office, we don't see all of the commission within a brand. If everyone who listed sold than fees probably wouldn't be as high, as what they are because you wouldn't have to balance the lost listings with sales.

So in short you really don't owe the agent anything unless you agreed to pay the marketing a part of the original listing.

 

[Big Will]

But I am sure a bottle of red will go nicely Ryan?

 

[Marty McDonald]

They get their 1-2% to cover the costs of not converting business.

This is a bit like a broker you get $0 for a lot of your work and a pittance for a lot of other ongoing maintenance work for your more active clients BUT then you do get paid what on the face of it can appear a generous amount for new loans that actually settle and don't get paid out in the first 2 years! All part of the cost of doing business..

Most have the advertising paid upfront around here at least but if that's not in the contract you signed then I would just make sure you use them when you do eventually sell.

 

[RyanMcHarg]

But I am sure a bottle of red will go nicely Ryan?

I would personally never say no to a nice bottle of red, it would certainly help soften the blow!