Selling Private and agent finds buyer

[SAllan]

I am trying to sell a property privately.
One of the local agents approached me and asked if they could show some clients through. I agreed, but said they would not get the listing as i wanted to sell private, but if they did managed to get a buyer we would discuss commission.
Anyway they did get a buyer, but the offer, less their commission was not enough. I asked them to half the commission to enable the sale to go through, they refused!
As they do not have any agreement or signed listing what is to stop me approaching the buyer privately and comming to a deal. I would sell for less than he offered!
I cannot see that the agency has any claim for commission but would be interested to hear other opinions.
I know it is not very ethical but it makes a change for the shoe to be on the other foot.
Cheers
Stuart

[Ivanhoe]

As they do not have any agreement or signed listing what is to stop me approaching the buyer privately and comming to a deal.

ethics

I know it is not very ethical but it makes a change for the shoe to be on the other foot.

well one can always find a way to justify one's actions, especially if $ is involved.

I know it is not very ethical

but you plan to do it anyway?

[payjisan]

How about if the buyer now approaches you directly to purchase the property, will you turn them away??

[Hound]

You could always do the deal with the buyer, & post a cheque to the agent for the commission amount you offered. Sort of having a dollar each way. A willing buyer & seller and all.

"Presentation of this cheque constitutes full & final settlement of this matter."

Or better still hand over an envelope stuffed with cash. (Not that I would ever do it, of course)

[SAllan]

Ivanhoe, Yes i probably will do the deal unless I'm told the agency has a legal right to the commission.

Payjisan, if the buyer approaches me, we are in the same situation, agent introduced him to property.

I offered the agent $6,000 instead of there $12,000.
The buyer was led to believe by the agency that they had the listing. Had he been told it was a private sale he said he would have paid a finders fee!

I just couldn't understand the agent wanting all or nothing. Surely $6000 is better than no sale?

[payjisan]

I think agents can get in trouble if they let it be known that they are introducing buyers and sellers privately and pocketing the 'finders fee' all themselves. By trouble I mean sent packing from that Agency! This could be part of the reason why he/she hasnt accepted your offer of $6000.

On the other hand the agent was a bit stoopid werent they....

As you have signed nothing, there is no legal obligation on your part.

SOLD!

[xris]

I am trying to sell a property privately.
One of the local agents approached me and asked if they could show some clients through. I agreed, but said they would not get the listing as i wanted to sell private, but if they did managed to get a buyer we would discuss commission.
Anyway they did get a buyer, but the offer, less their commission was not enough. I asked them to half the commission to enable the sale to go through, they refused!
As they do not have any agreement or signed listing what is to stop me approaching the buyer privately and comming to a deal. I would sell for less than he offered!
I cannot see that the agency has any claim for commission but would be interested to hear other opinions.
I know it is not very ethical but it makes a change for the shoe to be on the other foot.
Cheers
Stuart

Stuart,

If you have not signed anything with the agent then there is nothing to stop you approaching the buyer and conducting a private sale. I suggest you do this. It will be a steep learning curve for the agent and teach him/her a hard lesson.

It may also have shown you that engaging an agent does have many advantages over selling privately.

xris

[Vern]

Hi there, a tricky one but I don't really agree with the general view. Treat others as you would expect to be treated. What price integrity...

Stephen

[payjisan]

Hi there, a tricky one but I don't really agree with the general view. Treat others as you would expect to be treated. What price integrity...

Stephen

It's not as though SAllen has changed his mind or gone back on his word here. By even offering the agent $6000 I think he has shown integrity aplenty. If he had the property on trade me long enough he would have found a buyer anyway and only had to pay $99! $12,000 with no signed listing?? Get real!

[SAllan]

Xris,
Thanks for confirming my thoughts.
I have had more interest privately but of the 3 groups the agent showed through there has been 2 offers.
1st offer was 15% below asking but second was more realistic. So yes the agent did manage to get offers signed.

I have heard of a similar situation when the agent has brought in a buyer but insisted on having a listing agreement signed before presenting the offer.

I would still try and sell privately in the future as I see the $12000 in commission I would have to paid as 10months interest payments if the house stayed empty.
At present I am in the position to be able to carry this expense but if i needed the quick sale and did not have the time to market and show the property then I would seriously look to list with a good agent.

[property_source]

$12000 without doing marketing of the property in the form of newspaper etc!!! Suppose they have had more desperate sellers that would take it..

When I listed my propert on trade me I was bombarded with phone calls from real estate agents wanting the listing...dont think I will put my phone number for public viewing again

[SuperDad]

One of the local agents approached me and asked if they could show some clients through. I agreed, but said they would not get the listing as i wanted to sell private, but if they did managed to get a buyer we would discuss commission.

This pretty much says it all. The agent introduced the buyer, and you agreed that if they did introduce a buyer, you would "discuss commission". I'm sure the agent took this to mean that you would pay them a commission for introducing the buyer. Indeed, the fact that you are negotiating the commission amount with the agent suggests that there is an agreement of sorts between you to pay a commission - what is in dispute is the ammount of commission to be paid.

Now you want to cut a deal with that buyer and leave the agent with nothing? I think Ivanhoe had it pretty much sewn up back at post #2.

Paul.

[Monid]

This would of course never get to court because it wouldn't be worth it, but the outcome would be interesting, you did at least have a verbal agreement, what that is worth, well that's why it would be an interesting case.

Cheers
David

[xris]

Okay everyone, it is nice to be the villain of the peace for a change.

There is little room for ethics in this type of situation - it is all about greed and out and out business.

If SAllen does feel guilty in any way then I suggest he offer the agent a dollar as his first and last offer. That way he has discussed commission and offered to pay a commission. Problem solved.

I still stand by my earlier post.

What should the agent have done? Well, there are numerous variables here, but the below quote from SAllen would have been an option I think.

If the agent presented an offer without a signed listing authority then he/she should expect to receive what is due, that being nothing.

I have heard of a similar situation when the agent has brought in a buyer but insisted on having a listing agreement signed before presenting the offer.

xris

[Josko]

I would find it difficult to justify such an action, you need to think about it as if there was a Listing Agreement in place, if there was you would not be allowed to do it, I am sure the Agent took you on your word. You are proposing to shaft someone I believe this will have repossessions beyond just your reputation, the Agent brought you a few prospective buyers and he deserves to be compensated. IMH&MO