Stubborn clueless parents with $1.8m house. Won't use agent

[crashy]

So my parents have a 25 year old house in West Harbour. They have just renovated it to a moderate standard. Against my strong objections, they are trying to avoid paying an agent by listing it themselves. I have explained that buyers in the 1.8m range are not looking at homesell listings on trademe. People don't want to negotiate directly with the owner.

Can anyone recommend a good agent in the area?
How can I get through to them that it's imperative to use an agent?
Is it realistic to ask the agent to bear the cost of marketing? I've never paid for it.
Any companies to avoid?

I've told them that they need to start attending every open home in the area, paying attention to how hard the agent sells to them. No push, don't use them yourself. Not taking your name and building a database? Don't use them. "This house is not what you are looking for? OK well I have another around the corner I can show you" No? Run.

The irony is that "million dollar listing" is their favorite show. And they still don't get it!

[JBM]

Depends on their neg. skills ....the likes of trademe great way to advertise for min costs ....no harm in giving newbie R.E agent a General listing ....when the market is this hot ... could even get some free advertising(RE companies like to help out their newbie minion's with free advertising etc) ... remember R.E will be getting some 50k+ cut from your parents asset if they do sell it...

Sold are own house 1.1mill privately ..(after RE agents gave it a good go for near on couple of years)...

[Bobsyouruncle]

Your premise that they need an agent is quite false.
They may get a great price with an agent but it's no guarantee at all. It just needs someone to fall in love with it. I am guessing your post is partly to promote the property yourself so all marketing is good.

There are no homesell listings in West Harbour by the way.

[Hound]

I'd estimate 90% of buyers would never purchase privately.

[Momo]

Well, it is their house and their decision, frankly, if they trying to sell for a period of time and still can't get the price they want, then maybe they will change their mind.

[Bobsyouruncle]

I'd estimate 90% of buyers would never purchase privately.

Because only 10% of sellers sell privately........

[Keys]

I'd estimate 90% of buyers would never purchase privately.

Approximately 78.3% of statistics gained from purchasers was done so with faulty or ambigious questions.

[Rosco]

Hi Crashy,

How do your parents know what the house is worth?
- Valuation? generally outdated and conservative
- CV - you must be joking
- other ways?

An agent will charge around $50k of commission, but imagine if they get an extra $100k or $200k or more?

For high value properties in good areas, it is often hard to know what the property is worth. And even agents struggle to put a value on it.

I would always use an agent in a bigger firm, so that they have other agents and supervisors to discuss the property with and then they have the most knowledge and experience to know what the property should sell for. They are also in the best position to know what sales method works for that kind of property.

Do your parents do their own legal work too? That would save a couple of thousand too? I'm trying to make a point here, that in my opinion it is better to use a professional that is an expert in their area.

Ross

[Bobsyouruncle]

True for accountants and lawyers Ross but not for agents. Sadly the majority of them are pretty useless.

[crashy]

They may have pulled it after I went through with the thinking of a buyer (which of course they didn't appreciate, but I think in the end its what will help them). I pointed out about 50 things that must be fixed Pronto. For example, swapping out the dated and paint covered switches, lights and sockets with new stainless ones.

If I had a 1.8 budget I expect perfection, and professional service. A suit and a merc. Not budget brand. I would be knocking down the price knowing they weren't paying commission. I might be reluctant to make an offer directly for fear of being called rude. If I had a lousy poker face I probably wouldn't make an offer at all. But that's just me, based on my experience with buyers in far lower price brackets and study of that TV show. It's 90% likely the buyer will be Asian, so what do they expect?

[Bobsyouruncle]

Asians often prefer the place to not be done up actually.

[jimO]

For example, swapping out the dated and paint covered switches, lights and sockets with new stainless ones.

doubt you will get a centavo more for the house with new lightswitches

[Frezzinghot]

I see no problem with private selling, as long as you do the basics right I'm sure it will sell. Price it right and get rid of it.

FH

[JBM]

I don't understand why people think it's got to be either one of other ....list it under a General contract with a Keen agent then also list it privately
cover both bases

[Nick G]

You won't get much from the agency for that, signs, print ads, store front etc all costs so they want a solid crack usually.

If they know what they want then list it with an agent as that + fee as minimum buy price and stipulate the agent pays the marketing? Can't loose.