estate agent knocks on your door withh buyer for your property

[HattrickNZ]

if an estate agent knocks on your door and says he has a developer who wants to buy your property, how should one proceed?

Any advice re negotiations?
Is there anything to look out for?

As I understand it:

• the buyer does not pay any finders fee. I thought there would be but it seems nz is different?
• the seller has to sign up to the estate agents agency, standard contract i guess.
  [*=2] Any thing to be look out for here?
  [*=2] Don't want to sign up to some agency and then maybe another offer comes in from someone/somewhere else and be tied to one agency.
• The seller pays the commission on the aggreed sale price. I am thinking, A way to get the buyer to pay the commission is to include it the sale price aggreeed?

[Keys]

My suggestion is to give the agent a limited agency for the one named buyer which lasts one week.

[HattrickNZ]

Thank you Keys, what happens after the 1week if nothing is aggreed? If the buyer is still interested does he jsut make his offer again and the seller gives another 1 week to the agency?

And sorry but what does a limited agency for the one named buyer mean exactly? Does it leave it open for other offers?

[Wayne]

Questions for you
- do you want to sell?
- when sold do you have somewhere you'd like to go?
- is buying going to be hard?
A few years back people found that once they sold they couldn't find a place to buy.

If you are open to selling but don't want to sell (ie are really in the market) you can play hard ball.
Be prepared for it to take on a life of its' own.

[HattrickNZ]

Not looking to sell, but happy if the price is right.
Have nowhere to go as such,but do have and idea, but would nearly like to put in a condition that only if we buy something X that meets our criteria would we settle. But I guess it is unheard of a seller putting in conditions like that?
If buying was hard, it could be helped if we could decide the settlement date.

[Wayne]

Put any conditions you want - you are in the driving seat.

[motivated]

And they approached you--make sure the purchaser pays agent fees. Ie they engaged the agent , you didnt---so be careful that any paperwork you sign does not commit you to paying a commission

[HattrickNZ]

@motivated, thats what I thought, I do not want to sign any agent agreement really if i had a choice. But I am happy to sign a S&P to name my price at how much I would sell for.

[PTILoveYou]

If you really want to sell, or at least get a good feel of what your property is worth, why not get an independent Registered Valuation done?

Also you should ask the buyer to cough up the commission fee.

[Wayne]

The commission is just part of the final price agreement - you need to think of it as net (in your hand).
Just be warned - in my experiance, once you start down this track, you will end up selling as you condition yourself to moving.

[Wayne]

@motivated, thats what I thought, I do not want to sign any agent agreement really if i had a choice. But I am happy to sign a S&P to name my price at how much I would sell for.

I think the REA will need a signed agreement of some sort to be able to start.
I could be wrong.

[Maccachic]

Stick a painted for sale sign on the front lawn and wait for them to come to you?

Is there development opportunity for the property?

[motivated]

I think the REA will need a signed agreement of some sort to be able to start.
I could be wrong.

If this is the case, make sure the purchaser has signed paperwork which engages the agent as a buyers agent