Real Estate Agent’s Advice is hard to understand

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  locknuts on 26/01/2020 - 08:42

  You're still in charge at the end of the day. Tell him to do what you want him to do.

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    Bellpop on 26/01/2020 - 09:01

    +1

    This is what we have learnt.

    With any other profession you tend to place your trust in their knowledge and expect they do what is in the client’s best interest (doctor, psychologist, lawyer, hairdresser, etc).

    Seems it doesn’t work this way in real estate.

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  gromit on 26/01/2020 - 09:47

  A lower initial asking price will see many more people come that would otherwise not bother, many times it is one of these that falls in love with the house and stretches their budget to what you really would accept. It is common practise to put the market price below what you would accept. however the price does seem a little low compared to market, FYI, bank valuations rarely mean much. I would get another RE agent to provide an honest evaluation even if you have to pay them, maybe the RE is way underpricing or your expectations are just too high.

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    Bellpop on 26/01/2020 - 10:49

    Lower by how much though? People aren’t stretching budgets by 50%… and don’t banks have a bigger interest in getting a house valuation correct/conservative?

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  Seaeagles on 26/01/2020 - 12:46

  +3

  You should get several agents through to get quotes and expected sale price before signing anything and only sign a short term contract.
  When we sold our last house we got told to list between $390,000 to $600,000, the one we went with sold the house in 3 days for $585,000 which was the listed price.

  Agents don't care if the house sells for $100,000 less as it makes very little difference to them in the commission they receive.

  I have had agents promise the world and after being on the market 2 weeks tell you that you overpriced the house and need to drop the price even though they recommended the price.

  I tell them I only will sign if there is no advertising cost or any fees if they don't sell
  Also if you think the house will sell for $900,000 than anything above that the commission will be 3.5%
  Sell between $850,000 and $899,999 the commission will be 3.3%
  $849,999 and below the commission will be 2.5%

  Pretty quick to work out which ones are trying to promise something they know they can't achieve.

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    Bellpop on 26/01/2020 - 14:49

    Thanks mate. Great advice.

    Will be interesting to see how it all pans out. I’ll let everyone know.

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  Wangy754 on 26/01/2020 - 17:17

  The agent doesn't get to set the price for u, no matter what price they suggest, it comes down to u to tell them what price to set. Many agents work on a sliding scale, so they start from a lower commission and the higher price they give u, higher their commission is. It's the best way to keep agents motivated.

  U don't want ur house to be listed on the market for too long, it will get pushed down further and further on realestate/domain.com unless u buy the top spot. Also seasoned buyers generally think the house has got some issues if it's on the market for too long. Basically it will be a dead listing and after few months u will need to spend thousands to relist with realestate/domain.

  I don't think bank valuation is the best indicator when comes to SELLING the house. Most important indicator is comparative listings around you area in the past 6months, if your own research is based on comparative sales then u should trust ur research. If u want private treaty, then the price guide should be within ur set price in mind. If u want to go to auction, u can set the price bit lower to attract more people to the open home as long as it's not too far off ur reserve price.

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    Bellpop on 26/01/2020 - 22:19

    So many variables 😔

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  WhoGiveAShxt on 27/01/2020 - 01:15

  +1

  • What are the selling prices of similar properties in the suburb in the past three months?
  • How long it take to sell the similar properties in the suburb (time On the market)?
  • How far off/over are the final selling price comparing with the listing price for those properties?
  • Have you interview more than 3 agents from different shops and ask them to walk you through what would they do to get the best result for you as a seller?

  Ask these question and you get the answer.

  I don't know what suburb of you property is. But I give a hint that it is not a seller market for the suburb. If this is the case, this agent would be at the very bottom of my calling list.

  Still, I could be wrong.

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  altitudinous on 27/01/2020 - 13:45

  Real Estate agents indeed work for themselves. Everybody works for themselves.

  No matter what job you are in - would you do it for no pay? Probably not. You are not dedicated to your job - you are working to get your pay.

  You are working for yourself too. Nobody is a charity.

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  [Deactivated] on 27/01/2020 - 13:47

  Do real estate agents work for themselves instead of the vendor?

  Why is that even a question? How naive are you Op?

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    Bellpop on 27/01/2020 - 13:53

    Very?

    As mentioned above, most professionals I know are ethical in their work.

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      nahi11 on 27/01/2020 - 16:17

      Hairdressers and beauty therapists don't count darling

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        nahi11 on 27/01/2020 - 16:21

        Actually they do they count but aren't representative

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  JungliChilli on 27/01/2020 - 19:58

  Is this not illegal practice? In relation to under quoting.

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