Estate Agenets - now offering no % commission

[stixster]

Hi All,

Maybe this is not new news at all. But I have just put my first property on the market to sell privately and was contacted by two agencies who offered to sell the property for me - nothing unusual in that.

However, they both offered me a deal where they did NOT get a percentage of the sale value. They wanted me to set the minimum price I wanted, and they would keep anything they got above this. This meant that if they sold the property at what I believed to be market value their commission would have only been $2500, instead of the $10,800 under the normal % basis.

So, the first agent had a written offer to me within 48 hours, which gave me what I wanted, and gave him a cheque for $2000 more than he would have under the normal % basis. Why? Because he sold it for $8000 more than Market Value.

Now, either my estimate of the MV was miles out, or he just did a great job on someone! (I think the latter)

This was a win-win for me and the agent, and certainly puts the onus on the agent to perform. I will use him again and am now looking to use the agency for other sales. The agency is a national brand.

Thoughts and comments always welcomed.

Stix.

[whitt]

Nice work. A proactive agent good to see.

[Stevegoodey]

Wow that is so open wide for abuse by any dodgy agent.

Steve

[[email protected]]

Are there dodgy agents Steve??
Next thing you'll be telling me I can't trust our politicians.

[stixster]

Wow that is so open wide for abuse by any dodgy agent.

Steve

How can the agent burn you, when yhou are the one setting the price you want.

I guess as long as you have done your research, like all good PIs do, then if the agent burns you - it's your fault.

But as long as you are getting the price you want, then who cares how much the other person makes.

[stixster]

Are there dodgy agents Steve??
Next thing you'll be telling me I can't trust our politicians.

That's the best avatar yet, it's a scream!

Had a great coffee, well tea, with Heg.

[Ivanhoe]

RE agent's RESPONSIBILTY (called "fiduciary duty") is to get best price possible for their principal (tha's YOU - if you are paying comission). So if they work for you and you pay them - the HAVE A DUTY to get top price. (Even if you wanted less, it appears! ).

[Stevegoodey]

How can the agent burn you, when yhou are the one setting the price you want.

OK here's how it works now stick with me it's going to be an upsetting ride because this is an example based on true events.

Knock Knock

Good afternoon madam my name is #[email protected]#&*anker an I work for %#!&uck the customer property sales.
I have a mate who sends me a list of all the old dears who book into the local retirement home, and I was wondering if you would like me to sell your house for you?

I tell you what I'll take any money left over after you get paid $xxx, how does that sound to you?

OK now just sign here and here and here so that I can give a kick back to my mate at the old folks home thats right, now I think you should get at least as much out of this deal as I am going to so that you very much and you have anice day.

Makes most politicians seem almost ethical.

Steve

[xris]

Now, either my estimate of the MV was miles out

Hello stixster,

You said it buddy.

Think of it like this.

You have effectively sold privately because you refused to take any advice on price from the so-called professional.

Selling privately is the simplest way to undersell.

It may be that the agent saw in this scheme a way to make a fast buck from a private vendor. It may also be that the agent's role in this needs to be examined in more detail.

But, hey, you believe you have got market value, so you're happy enough. But then didn't you just sell for a market value (version two), which was $8,000 more than market value version one? And what have you just done with that extra $8,000 you didn't know existed?

Just my usual cynical opinion of course.

xris

[stixster]

Thanks for .... oh, that's right, nothing

Haven't really posted much on PT before, and will probably not do so again.

I offered what I thought was some interesting news about a change in the way Real Estate agents operate. To all of you who sent Private Messages to me, wanting more detail, good luck and thanks for being open minded, and I hope you all get the same result I did.

To those who replied on the forum, I realise why I should stick to PI and not wasting my time on PT.

You don't know anything about me or my experience, but to have almost all of you assume I'm stupid, naive and/or ignorant and I should listen to all of you apparently experienced PIs, was a real disappointment and underlined that this site has lost its value.

You were more interested in trying to tell/prove that I was wrong, ill-informed, or not knowing what I am doing, instead of focussing on the modus operandus of the agent and seeing if there was an opportunity for yourselves. So much for sharing and trying to help others.

I did very well out of the deal thank you, and will now stick to making money, rather than investing my time into these forums.

[Heg]

Haven't really posted much on PT before, and will probably not do so again.

Nice work everyone. Someone shares some information and we shoot them down in flames

You were more interested in trying to tell/prove that I was wrong, ill-informed, or not knowing what I am doing, instead of focussing on the modus operandus of the agent and seeing if there was an opportunity for yourselves. So much for sharing and trying to help others.

I was with a group of PI's today and we discussed how much this forum had changed (for the worse) recently. Such a shame. I for one am spending less and less time on the forum as I cannot be bothered to wade through all of the bitching and backbiting that seems to crop up in almost every thread.

Congrats on your deal. Sounds like you made good money I wish you many more

[xris]

Hello stixster,

I appreciate your openness. I was probably one of the people you refer to, so here is a reply which I hope you appreciate has some thought put into it.

I for one am not a back slapper. I tell it as I see it, and if you follow this site you will realise that.

I, and everybody else can only go one what you post, so yes, I do not know you, but that is of no consequence because it wouldn’t change what you had written. In fact, it is better that I do not know you because my reply is not influenced by social norms of friendship/acquaintance.

You may not have liked the various (perhaps in your eyes ‘negative’ comments, but this is not a site for quiet acquiessence. We do, or rather should, state our opinions as we see them, within reason of course.

Back to your post. An interesting topic for debate. Let me tell you, that despite your belief that this is a revolutionary tactic employed by a forward thinking re salesperson, it is not – it is as old as the hills, and is an approach fraught with pitfalls for both vendor and salesperson. For the vendor, underselling: for the salesperson, acting unprofessionally and unethically unless done correctly.

Nobody said you were stupid or ignorant, so why assume that we think that? Everybody is here to learn, even an apparent occasional pompous wind bag like me. If you think the response to your post was harsh, just look around this site a bit more.

You have not addressed the two points I made, that you probably would have undersold at your perceived market value, and may well have done at the higher sale price; and that you haven’t really gained anything anyway because you still paid near enough full commission.

You perception of what market value was, a perception upon which all your assumptions are made, is total guesswork and irrelevant.

I also mentioned the agent’s behaviour. Just one point on his behaviour (and yours come to that). An offer was brought to you two dats after listing and you signed it (and I presume the agent did not advise against such haste?) No open homes? No advertising? No stream of buyers coming through to view? But thenagain, you knew what it was worth didn’t you stixster, so why bother with all that time wasting nonsense called correct marketing?

I for one hope you stay on board and continue to post here.

xris

[Heg]

,

I for one hope you stay on board and continue to post here.

xris

Well said.

[keleri]

Stixster, there will always be replies as above from so called experts that see the negative in what others do. Your post is about your experience and all can make of it as they want. There are many people reading these posts that benefit from this info and make no comments.

[payjisan]

Thoughts and comments always welcomed.

um, so whats your problem?