a RV enquiry

[leapy]

One man's trash is another man's treasure. If the real estate salesperson's head is in the wrong space, he/she will have trouble believing that a property is worth what a trained and professional valuer says it is worth. When that happens - the salesperson may have an attitude problem which will cost you thousands of dollars.

If it were me - I'd contact their principal - tell them about their salesperson contacting and haranguing the valuer - and that you think this is unethical and you intend to lodge a complaint with the REINZ, email Clayton Cosgrove, whatever... if they do not release you.

Work out in advance who you will take the property to instead.

Real estate agents who are truly good at their jobs indeed have sophisticated databasing, networking and negotiating skills.

I would caution against going with volume merchants - primarily because their focus is usually on turnover - and not quality of sale. They are usually quite charismatic - and skilled vendor "crunchers". i.e. It is often easier to bash your expectations downwards than it is to lift the offer of potential purchasers.

But I concur with the advice to check the company websites and look for those with awards - and then lastly interview them and make sure you can have frank, respectful and progressive conversation with them.

Good luck.

[QueenBee]

Yeh I know, it's quite unbelieveable that someone would do that. He doesn't know I know. I was ropeable when I found out, and decided to calm down a bit before I did anything. Then my husband said to just leave it, and we will just keep it up our sleeve for a while.

I've told him to change our ads and put different pictures up. I've actually re-written our ads and emailed them to him as a suggestion. I haven't looked today to see if he's changed them.

I am looking around for another REA

[Mark_B]

Then he rang the Valuer without telling us and told him that he had raised our expectations too high with his valuation, and that was why the house wasn't selling. And then proceeded to tell the Valuer that he wanted him to change the Valuation to $440k. The Valuer rang me and told me this. I thought this was very unethical.

The REA I just had lunch with (and who I relayed this story to) agreed that it was unethical (she was quite aghast, actually) and even went as far to say that you should be lodging a complaint with the REINZ.

M

[Mark_B]

The agents that seem to have the most listings are also likely to be the most effective agent in the office

On that point I would have to at least offer a note of caution.

Most listings = possible volume merchant.

I know one REA who routinely carries a dozen or more listings, but his sales are not at great prices.

Ultimately you get what you paid for and this particular REA charges a cut-priced commission (he makes up for it with lots of low-quality sales) and, as it turns out, the other agents that work with him don't touch his listings since the commission cheque on offer is so small.

To me, engaging that particular REA sounds like false economy!

M

[JohnL]

You need to identify the top agents in each office. You may get this by asking the boss or receptionist? Or, sometimes their profile on their web site may list awards they have won. The agents that seem to have the most listings are also likely to be the most effective agent in the office and you can see this on their web site. Just some thought starters.

After that, you could meet with them to make sure you like them or at least can work with them.

If you find an office where one of the top 10 agents for that agency (nationwide) works, even better.

John

[QueenBee]

My thoughts exactly. But it's like talking to a brick wall when I try to suggest anything to him. Lots of people say they get really frustrated with REA's because they are really vague and can't pin them down on a price.

Your strategy sounds like common sense, I just seem to have acquired an Agent without any.

In fact, the only offers we've had on our investment property have come through other Agents within the same Agency, not by our REA, who can't even turn up to do our Open Homes, and gets someone else to do them.

And she turned up just as the Open Home was starting on Sunday, and said she was thinking we should move the furniture around in the lounge, but she'd been sooo busy all week, she hadn't had time to call us.

I saw that Property Ladder with those two friends, it was very interesting.

[cube]

He said I don't, because we want them to offer more. I said why don't you just tell them, he said no, it doesn't work that way.

One of the first rules of negotiation - the party that names a price first will generally lose out.

Sure, most of the people are putting in 'low' offers, relative to your expectation (conditioned by REA speak and a valuation), but what happens if your REA says "They won't sell for less than $470,000" - $470,000 immediately becomes the maximum anyone will pay (not the minimum, which was your intention). By asking them what they are prepared to offer, they may get a response of "we can't go over $500,000!" BINGO! guess how much a decent agent is going to get them to write up in their offer.

Did you see Property Climbers the other day, and how the young friends ended up settling for $30,000 MORE than where they wanted to start AND $5,000 OVER their 'absolute' top price.

Don't underestimate the value of a good agent, or of the power of some of those negotiating tips that you read about from time to time.

Good luck in Aus.

cube

[QueenBee]

He said there were more buyers in the lower price bracket, and then it thins out.

But yes, I see what you mean. I agree totally, I've just picked a bad agent. I'm going to have to investigate some other agents and see what they can do. I really don't mind spending more money on advertising, if they can sell, I just thought that maybe the house had now been overexposed. But I see what everyone is saying, and I do agree, I just have to do something about it now.

[Mark_B]

the REA said there are less buyers in this particular range?

I gather you are inferring that this price range is out of the reach of most buyers.

Sure, that happens.

More people can afford to buy a 1982 Toyota Corolla than can afford a 2006 Ferrari F430.

Still there are dealers out there that manage to sell those Ferrari's.

I've observed that some REAs are more comfortable and succesful in certain price bands (certain types of property) than others.

And if you do decide to change REA than perhaps you need to focus on locating a REA who has a track record with such properties.

M

[Mark_B]

When I asked him why we were having an Open Home that weekend, he said they never do after a Tender has just closed, because it makes the Vendor look desperate.

Have you ever been driving along and seen a car parked on the side of road with a sign that says "4 Sale - One Lady Owner".

Chances (99&#37 are that it is b/s of course and the car has been thrased by some p-plate driver, but that is not the point - it creates the perception of a good deal (in some people's minds at least).

My point is that looking desperate or motivated isn't a bad thing if it gets people interested enough in the property to make an offer.

A good REA gets people through the door and gets them to commit an offer to writing - it doesn't matter if their first offer is not what you want - it is your REAs job to close the gap and close the deal.

Something your REA seems incapable of doing.

M

[QueenBee]

The REAs that I know well who do very well aren't relying on marketing to sell properties. They already have a very sophisticated database of clients and contacts.

Another REA = another database of clients / contacts.

And to be honest, what is $1000 relative to a $450k plus property? It's nothing. A better REA will be able to return you that $1,000 and then some imho.

M

That's what I was wondering, and that's why I've kind of been sitting on the fence and deciding whether to sack him or not. How do I find a good Agent, lots of them ring, and say they are the best, but how do I know which one is any good. Do I interview them?

I must sound a teeny bit stupid, but I've never sold a house in this price range before, and the REA said there are less buyers in this particular range?

[QueenBee]

Hello QB,

A good story.

How long has this salesperson been in the job? I suspect not long.

There seems to be a collection of errors here which add up to a stuff up.

In general terms you need to know what you are doing from day one and go at it hard. Tenders are a cop out in my opinion (with only a few exceptions). The result is what has happened to you - you are worse off than when you started.

xris

He's actually been doing it for years and years. We brought our first investment property from him just over 5 years ago, and he was in the game before that.

Maybe REA's have had it too easy for too long, and think that they can just plonk a couple of ads in the paper, put a flag outside your house for an Open Home (actually we didn't even get that) and it's sold. Maybe they will have to start thinking outside the square to sell properties, if they want to survive in this market.

Actually talking about Open Homes, the week after our Tender closes, we didn't have an Open Home (even though he never took the Open Home sign off the fence) and someone turned up to our non Open Home, so I ended up showing them around. When I asked him why we were having an Open Home that weekend, he said they never do after a Tender has just closed, because it makes the Vendor look desperate.

I'm not having much luck with anything this guy does am I?

He's also got an investment property to sell for us, which is having just as much luck. The tenant has now moved out, and I said I wanted an inside photo on the ad (the house is a bit ugly on the outside). He said that you don't tend to get much response from inside photo's if the house is empty, because it doesn't look as good. Mmmm.

We've had heaps of interest, but mostly from investors, who are coming in with offers $20k under the BEO. I said to him, if someone asks you how much we want, what do you tell them. He said I don't, because we want them to offer more. I said why don't you just tell them, he said no, it doesn't work that way.

I don't know what I was thinking when I got this guy. LOL.

[Mark_B]

The REAs that I know well who do very well aren't relying on marketing to sell properties. They already have a very sophisticated database of clients and contacts.

Another REA = another database of clients / contacts.

And to be honest, what is $1000 relative to a $450k plus property? It's nothing. A better REA will be able to return you that $1,000 and then some imho.

M

[QueenBee]

But on the contract it says we will contribute $1k towards advertising, so we will still have to pay that? And I'm thinking if the property is already out there, is it really all in the marketing, would another Company be able to sell it. Would it be worth starting all over again, and paying someone else for advertsing etc.

It's probably not a very good time to sell at the moment, maybe everyone is waiting for bargains.

[xris]

Hello QB,

A good story.

How long has this salesperson been in the job? I suspect not long.

There seems to be a collection of errors here which add up to a stuff up.

In general terms you need to know what you are doing from day one and go at it hard. Tenders are a cop out in my opinion (with only a few exceptions). The result is what has happened to you - you are worse off than when you started.

xris