What Does a Real Estate Agent Do in This Hot Market? Are They Necessary?

confusedhuh on 19/02/2022 - 07:27
Last edited 19/02/2022 - 12:03 by 1 other user

So saw a few auctions and responses from real estate agents before the sale and they seem to be pretty useless to me. All they do is advertise on real estate websites and then just turn up wearing a suit on the day of the auction. They don't even respond to queries. Even if they do its a generic response such as quote a price and I will let the owner know.

The price the house sells for has nothing to do with them but they still keep putting adverts out claiming credit - "sold in xx days, xxk above reservice price"

Why don't owners just advertise it themselves, hire photographers and auctioneers and get rid of real estate agents completely ?

Home & Garden

Comments

      • Pufff on 20/02/2022 - 20:29

        That's more likely the owner being greedy or an agent who has lost touch with reality. Who in their right mind over quotes? They won't last long.

        • gromit on 20/02/2022 - 20:52
          +1

          Who in their right mind over quotes?

          Someone that thinks the overheated market is going to let them get away with record prices which in the area that had been repeatedly getting prior to xmas. He was justifying it by another house in the street 6 months prior going for 2.0 and the market having gone up since, but as I pointed out it was a better quality home that was almost new and in a better position in the street. I actually think they won't be able to get even my offer price now. doubt they will even make 1.8.

          • Pufff on 21/02/2022 - 00:20

            @gromit: I'm referring to what they tell buyers. I'm sure what they tell the seller and potential buyers are 2 very different prices.

            • gromit on 21/02/2022 - 07:41

              @Pufff: No Idea what they tell the sellers, but looking at the prices and more importantly downward price adjustments of a couple of properties they have listed I am guessing they are at least part to blame with setting unrealistic expectations with the sellers.

              For the buyers they were siting examples in the suburb that sold at or above that price based on block and house size only. Don't know if that was intentional to deceive or he just wasn't aware of the details of those houses, I guess if you didn't do your research to see the quality/position of what those houses were then it might come off as reasonable. The agent nearly laughed at my pre auction offer and told me it was ridiculously under the market value and I think he genuinely believed that (or he is a very good actor).

              the interesting part is the rejection of the offer only took a couple of days. Then I heard nothing for a week, then the agent calling asking me if I could raise my offer a $100k or so and I might get lucky as they want to close the deal. I said no as I felt I was already above its value. Then Auction was cancelled morning of the auction as no registered bidders and I got a call " good news due to covid we cancelled the auction and the seller wants to close a deal if you can just increase your offer by $50k", my response "No and my offer is no longer on the table". Then a week later another call, "vendor is willing to accept your offer". and answer "NO, told you last week offer is no longer on the table, goodbye"..

              • Pufff on 21/02/2022 - 10:18

                @gromit: Maybe a perfect storm of dumb seller and dodgy agent. If the people around us got those prices why can't we? Totally disregarding the potential differences in land, house etc.

                Scammers don't need to fool 100% of the people they scam. If it works even a few times they're laughing all the way to the bank.

                Were you still looking to buy? Why didn't you try low balling them?

                • gromit on 21/02/2022 - 10:32

                  @Pufff: I have found another place that I prefer, If it falls through then I would try lowballing them as a fallback.

  • dealbreaker on 20/02/2022 - 11:13
    +3

    I have sold 5 properties myself through propertynow and it worked pretty well. In a hot market its hard to let the nice families down having to tell them they are beat and in a slow market its crap doing heaps of open houses. I was selling for friends in a Dead market in the middle of the first covid lockdown and they needed all the help (couldn't afford what they wanted if they paid commission) and we could not find a buyer, ended up negotiating a swap with someone interested but not ready they got 3br house&yard and put in some $$, they other party got 2br townhouse for downsizing and didn't have to pay agent fees either. Agent would not have succeeded and the house is now worth 150k more than the unit so worked well

  • payless69 on 20/02/2022 - 11:50

    Same question could be asked: What does a Harvey Norman salesperson do when there are actually credible online retailers?

    • TransportPosters on 20/02/2022 - 20:39
      +1

      They try and sell you those extended warranties every time, or maybe get you to consider another model / brand which has more markup for them. I have only once bought an extended warranty and I'm glad I did in that case. Had a $350 printer replaced with no problem 2.5 years after buying it.

  • Seaeagles on 20/02/2022 - 13:04
    +4

    You get good and bad agents.

    We had an agent once that promised the world and sounded convincing so we signed with him and listed the house at the price he recommended.
    After the first open house he said we have unrealistic expectations and should drop the price by 20%.
    I told him we just followed his advice which he denied. Then I said we want to cancel the agreement and will be going elsewhere, I don't care what price you can achieve now as I have lost all trust in you and will not be paying you a cent. He agreed but kept saying it was the price that was the problem.

    Signed with a new agent a few weeks later and sold the house within 2 weeks above what the original agent told us what we would get.
    The second agent said the price is right just the agent didn't do his job properly.
    I said if you are so sure are you willing to have written in the contract that the commission you receive is X% if you achieve a price above $Y and within a month otherwise the commission is Z%.
    He agreed saying I'm confident I will receive the full commission.

    A friend tried selling her house herself and had hardly any interest. She finally went through an agent and they sold her house almost straight away at a price she wanted.

    • Hangryuman on 22/02/2022 - 09:21

      not sure I believe your story - sales contracts usually specify that they will get a full commission if you sell it yourself or with another agent, if they have introduced the client, which they will often claim to have done

      so changing agents for sale can risk having to pay double commission

      • Seaeagles on 22/02/2022 - 12:18

        Never had to pay double commission, I can't remember exactly but we had him sign something that they were no longer representing us and no fees are payable.
        Any contract can be broken, and he knew it was pointless keeping us signed to them as I made it quite clear we would refuse all offers after the lies he told.

  • Butt Scratcher on 20/02/2022 - 15:47

    You must've seen the recent south park episode

    • bamzero on 20/02/2022 - 18:24

      Haha, was thinking the same thing…

  • Peck on 20/02/2022 - 15:58
    +1

    In the good ol' days before the market was boiling, I tried to buy a property from an owner/seller. This was in the days when a property is listed slightly higher than the desired price, buyers would make an offer below it, and you would meet in the middle. I made an offer, and they virtually hung upon me. An agent would realise that I had made at least some emotional commitment with the offer, and negotiated between the owner and I. And probably played me off other interested buyers. In my case the owner/seller was thin skinned and an amateur. I would now hesitate to deal with an owner/seller.

    • Hangryuman on 22/02/2022 - 09:29
      +1

      sounds right - owners typically have strong emotional attachment to their imagined expected price, and are likely to repel prospective buyers who start with the usual low ball offer

      agents' job is to stay calm while mentally assessing the offers - as in, 'that won't do it - you'll have to try harder' - or 'there are already multiple offers at that level' - or 'I'll see what I can do' - while perhaps then going off to play off another prospective with 'here's the price you need to beat'

      do that over a period of weeks, while also conditioning the vendor - 'the market seems to be saying $XXX'

      and when I worked selling real estate, auction was the win cos the agreement including the vendor paying for all the splash advertising, whereas private sale ads were at the agency cost - so auctions were pushed strongly, even if they might not get the best price for vendors in a slow market. Crunch the buyer on the day - great tools for pressuring vendors - not buyers - as the vendors were misled into believing auctions put pressure on buyers - not so, they only put pressure on the vendor who was already up for thousands in advertising - buyers could just walk away.

  • jaimex2 on 20/02/2022 - 18:35

    I've sold a few places now. The REA pays for itself.

    A good REA squeezes every last cent out of buyers well above what I would expect.

    I actually target buying houses sold by the owner because it's easier to get a cheaper price.

  • serpserpserp on 20/02/2022 - 19:49

    They are good for dealing with people that think houses sell themselves.

  • SpaceNinja on 20/02/2022 - 20:42
    +2

    Real estate agents are not required, they are waste of money. Anything sells in hot market at desired price. Everything's online anyway. Agents actually add negative value by playing dirty tricks with buyers and seller sometimes.
    Also there is technically conflict of interest in their advice. Sellers need to grow up and sell their properties themselves.

    • Hangryuman on 22/02/2022 - 09:30

      and your experience ?

      • SpaceNinja on 24/02/2022 - 22:11

        Multiple times. I could write a book.

  • Piranha2004 on 20/02/2022 - 21:08

    The same reason we have brokers. Most people dont want the hassle of dealing with random people off the street. REA are supposed to be the "experts" at negotiating a better price for you. Their fee structure/s actually give them more incentives to get the highest price possible.

  • ChickenTalon on 20/02/2022 - 21:28
    +3

    As a seller you need to pay the REA according to the value that they deliver. Last time I sold I paid on a sliding scale, where they were rewarded for getting a good price, not just for completing the sale. I designed it similar to the tax system.

    I knew if the REA was getting 20c in the dollar they’d be working hard for the best price, not just the sale. And yes, the REA absolutely busted his arse trying to get the best price.

    $0 to $1,100,000
    1.10% commission

    $1,100,001 to $1,125,000
    $12,101 plus 3% commission on amounts above $1,100,001

    $1,125,001 to $1,150,000
    $12,850 plus 5% above $1,125,001

    $1,150,001 to $1,175,000
    $14,100 plus 7% above $1,150,001

    $1,175,001 to $1,200,000
    $15,850 plus 9% above $1,175,001

    $1,200,001 to $1,225,000
    $18,100 plus 10% above $1,200,001

    $1,225,001 to $1,250,000
    $20,600 plus 15% above $1,225,001

    $1,250,001 and above
    $24,350 plus 20% above $1,250,001

    • Vote for Pedro on 20/02/2022 - 23:31

      A real estate agent will prefer to sell 5 houses at your 1.1%, than 3 at $14,100 plus 7% above $1,150,001

      There are a number of variables they are considering. You commission is just one factor.

      • gromit on 21/02/2022 - 10:53

        that depends on how busy they are. What they would prefer is maxing out commission on everything if it doesn't prevent other sales.

      • ChickenTalon on 21/02/2022 - 11:12

        That assumes they’ve got so many properties to sell and can pick and choose which ones to work on. In that case an incentive to get the best price is even more important!

        • Vote for Pedro on 21/02/2022 - 17:34
          -1

          Yes. Thats what i said. Your ‘clever’ staggered incentive is only one factor. It is not the key factor. Most influencing factors are out of your control, unless of course your value proposition outweighs their other considerations

      • VehemenceThePhoenix on 21/02/2022 - 22:56

        I thought you two would be in agreement. "Do the chickens have large talons?"

    • gromit on 21/02/2022 - 10:51

      yep sliding scale is definitely the right approach, you want to incentivize them to get you the maximum amount, many will only do that if they see value in it for themselves. With a potential to double or more their commission with a bit of extra work many will go the extra mile.

      • ChickenTalon on 21/02/2022 - 11:16

        Yep. I must say it made the whole process very easy once agreed. I didn’t have to wonder if the REA was pressuring me to accept any price because I knew they had a big stake in getting every extra dollar. So I could trust that they’d done everything possible before telling me to accept an offer.

        It’s the only way I’d ever sell now.

        • gromit on 21/02/2022 - 11:38

          It is really very similar to the sales accelerators many businesses use to incentivize sales staff. If carefully modelled it works a treat for both parties. One of my mates did similar on his last house sale, the agent was able to triple his commission, both seller and agent very happy with result.

          • Hangryuman on 22/02/2022 - 09:35

            @gromit: if I recall the salespeople might have got only a sixth of the agency commission (half to the boss, one third to the listing agent who got the agreement to sell, one sixth to the agent who got the buyer to sign), I would wonder how many greedy bosses would not hand over the extra commission to the actual person who got the buyer. If the boss kept it there would be no incentive for the salesperson. If they passed it on, the salesperson might only get a sixth of the commission that was supposed to incentivise them.

  • Vote for Pedro on 20/02/2022 - 23:26

    While I don’t like real estate agents generally speaking, they exist because there is a market for them (people willing to pay for their services).

    I’ve seen attempts at companies that support DIY, but from what I can see across the board, they are far from being an annoyance to existing REA, let alone mainstream

  • Geekomatic on 20/02/2022 - 23:57

    No, you don't need a realtor. You need whatever entity handles the legal end (possibly a lawyer, settlement agent, etc— differs for each state). I marketed and sold two of my own houses. Even used stencils and made my own signs. Easy. You take photos and set appts. for viewing (you can set the time limit the same as they do). One tip: don't let people wander w/o someone watching them— insist you show them each room (obviously expensive items are locked away). Way too many thefts and no way to prove it unless you have cameras— and who wants to deal with all of that? If you're on a main road, maybe a small line ad in the most read, local paper (social media if you wish). Otherwise, you might look into one of the "by owner" websites which cost less than traditional. Good luck to you!

  • p1 ama on 21/02/2022 - 00:40
    +1

    Why don't owners just advertise it themselves, hire photographers and auctioneers and get rid of real estate agents completely ?

    Why do you need farmers when you can grow your own food, why do you need mechanics when you can service your own car…etc.

    At the end of the day, the answer to your question is because people value the time / effort saved of not having to do things themselves vs. the amount that they pay. If you don't agree with that, then that's completely fine, you're more than free to do the job yourself and save the money.

    FWIW, if you've ever tried selling something on FB Marketplace, or on Gumtree, or selling a car, you'll get exactly why people want to outsource the selling process. All of the administrative work of selling - taking phone calls, conducting the opens, doing all of the listing work…etc. takes time and effort. I assume that people who hire an agent prefer spending that time doing their actual job, spending time with their family, relaxing, going on a holiday…etc.

    • MindGrenadius on 21/02/2022 - 13:25
      +1

      The amount of work they put in is absolutely not relative to the amount they get. It's maybe a day worth of delegating and organising things, overall probably a week or two of work for often times $10-50K+.

      The value they provide comes from the fact that (if they're any good) they will know exactly how to deal with the buyers and enquiries and make you an extra 100-200K or more. I've seen it happen countless times. One of the better agents I know got 30% over asking just before the market got really good, purely by solid negotiation. It would not have happened without the decades of experience in negotiation.

      I certainly wouldn't complain about spending 20K to have someone handle it all for me and make me an extra 400K

  • MrBillions on 21/02/2022 - 09:53

    Some are so lazy

  • macfudge on 21/02/2022 - 09:55

    Auctions is what frustrates me the most about buying a property in Sydney. Where I come from, a house is only auctioned if it has been repossessed by the bank - that is the only way to sell a property at auction. Everyone else has to sell via the usual route. This negates (to a large extent) a number of issues including greed by the seller / agent, emotions and adrenalin during the auction and the agent needs to actually put some effort into selling the property.

    The reason there is a "guide" or the usual response to a question about price: "well, what would you pay for the house?" is because they absolutely want to cash in on FOMO especially in the current hot market. No one is looking to sell for a realistic or fair value, rather it is a question of how much can we make. And they get away with it.

    I am so sick of an agent telling me: "well, the vendors don't really have a guide price right now, what do you think it is worth?" Absolute rubbish. There is no seller that doesn't have some idea of what they think their property is worth, what they think it should sell for and what they would really like to see on the high end. If auctions were not allowed and people were forced to buy via private treaty, the property market would be a lot more stable. Sellers would advertise at a certain price, agents would have to run open homes and negotiate with buyers and houses would sell for more reasonable sums. Sure, there would still be people paying way over the asking price but the general house hunter would at least have a better indication of which houses to pursue.

    Sure, buyers should have some idea of the value of a property - looking at recent similar sales in the area for example, but where the seller's greedy expectations do not match reality, everyone wastes their time. We were looking at a property which we thought would be fair value at $2.1mil. Guide price from agent was 2.1mil. We added 20% onto this as our max for the auction allowing us to bid up to 2.5mil - crazy price for what it was but likely in the current market. We paid for building and pest inspection as it was not provided by vendor (another bugbear of mine) and got ready to hopefully buy a house. At auction, around 12 registered bidders. First bid was 2.7mil and only two bidders ended up bidding. Finally sold for $3.26mil. Great result for the vendors but so much wasted time, effort and money for the vast majority of people there.

    Agent had been calling regularly throughout the campaign to let us know that our 2.2mil max (what we told him) was "definitely in line with expectations". Evidently not.

    Now did this agent earn his rather large payday? Or was he just lucky to have two people who really wanted the house? Did he consider the damage to his reputation for future sales? We purposefully avoided properties with his name after that experience. What was the point of getting so many people there wasting their time if our (and many others) price point was so way off?

    The property selling game needs some serious controls. These would then allow REAs to actually add value to the process and perhaps start to reduce the disgusting reputation they currently have.

    • Hangryuman on 22/02/2022 - 09:42

      your righteous anger misses the reality - that selling is a process of negotiation between the vendor who wants the highest price they can get, and the purchaser who wants the lowest price they can get.

      the agents' job is to finesse both parties, drawing them together, until they meet, and agree on a price.

      so governments attempts to 'fix' a problem of 'price guides' is basically a WOFTAM

      the actual market price is never known until both sides agree on it the day the purchase contract is signed

      before that, vendors are hoping for higher, and buyers are hoping for lower.

  • Cluster on 21/02/2022 - 10:04
    +1

    I'm surprised real estate agents are still a thing. Middle men everywhere in our economy are being cut out. You can sell products directly yourself through web sites. Why not sell your house that way too?

  • Molebag on 21/02/2022 - 10:10
    +2

    I did my own research into what one of my properties was worth and came up with a figure around $550,000. This was considering other recent sales in the area with the same sort of house size/layout and land size. I got a real estate agent in to sell the property and they managed to get a sale of $640,000. At that point a $20,000 agent fee is a bit hard to complain about. Would I have gotten that amount on my own? Probably not.

    • MindGrenadius on 21/02/2022 - 13:20

      Stuns me that even in this market anyone would want to do FSBO. I don't like agents and most of them are not the nicest people but you will almost always get a massive return on the agent fee compared to doing it yourself outside of lucking out with a really good private deal straight off the bat

      • Hangryuman on 22/02/2022 - 09:44

        a rising tide/market lifts all boats/prices

        only when the tide goes out do you see who's been swimming naked

  • AsSeenOnTv on 21/02/2022 - 10:11
    +2

    I have been wondering the same thing as what the OP is asking and am leaning toward selling through an agent. You can list your place on the websites though some of the no service agents for about $600-$700 from memory which includes some signs, and then if you pay for a stylist and a photographer, which you have to pay for anyway you could potentially save yourself in the order of $20k based on 2% of $1m sale price.

    The reason i am leaning toward an agent is firstly the hassle factor, and more importantly that i could see them negotiating a higher price by at least their commission. I.e. as long as they can get the price $20k higher then they have at least covered their cost or actually made you more money.

    We are choosing our agent based on the prices they get relative to the places they are selling, not just how many they sell or what the average value is.

  • Hangryuman on 21/02/2022 - 12:50

    'saw a few auctions and responses from real estate agents before the sale and they seem to be pretty useless to me'

    I had an operation at the hospital - I saw the surgeon just before the anaesthetic, then woke up and he was gone - as I didn't see him actually do anything, he seemed to be pretty useless to me …

    as others have commented, a selling agent's work is to be available to handle enquiries when you are elsewhere/busy/at work

    to know professional conduct, and the required legalities, to manage open for inspections and prevent theft/damage to your property by dubious types

    to know the current market (hot/cold) and be able to negotiate with multiple prospective buyers, even play them off against each other, using psychological sales techniques towards bringing the best offer to the vendor

    and then closing, getting the signature on paper to make the contract

    most non-salespeople would not have all of those skills

    and DIY cheapouts tend to see prospective buyers thinking 'you're saving the agents fee so I'll reduce my offer by that amount' - so you do all the work, and they don't want to pay you so much

    it ain't rocket science, but ignorant comments like 'I didn't see them do anything' also applies to rocket scientists, am I right ?

    P.S. sales agents are paid by, and working for the vendor - not for you as prospective purchaser, so it's not their job to serve you in particular, mk ?

    • johnno07 on 21/02/2022 - 20:18

      to know professional conduct

      Are you still talking about real estate agents?

      • Hangryuman on 22/02/2022 - 09:45
        +1

        when I did a real estate sales course it was called 'professional ethics' or something

        scoff at will …

  • MindGrenadius on 21/02/2022 - 13:17
    +1

    I work in the industry, (not as an agent though) and agents are (mostly) pretty shit people - overall, yeah you can do it yourself. Thing is - you're likely not going to be able to negotiate the difference that a good, experienced agent will.

    You're also probably not prepared for the landmines that can come up in a property sale or getting one ready for sale. There's probably about a week or two of organising things that might need doing that you not only most likely don't have the contacts for, but the logistics don't always work if you don't know what you're doing. An agency will always be exposing to far more of an audience than you will doing it yourself, unless you know what you're doing.

    It could go really smoothly and no problems, or you could have something come up that totally wrecks the deal. There are so many intricacies involved, and yeah some of the young crappy agents aren't going to help with but if you get a good one they will handle a lot of the hard stuff for you and keep you safe from big issues.

    Not only this, but a good agent will also get you a return on that commission you pay them. Yeah it might cost you 10-20K in comms but you'll probably get 50K-100K more than if you did it yourself. I've seen countless FSBOs that ended up completely messing it up thinking they had it all covered and undersold themselves by a huge margin - much more than an agent commission would have been.

    TL;DR Agents can be some of the most terrible people around, but the good ones will still probably make you back 5 x what you pay them in their commission and save you a tonne of potential headaches.

    • Hangryuman on 22/02/2022 - 09:47
      +1

      agreed - people tend to be derisive about sales agents and lawyers

      until they want one to work for them

      when they will want the most aggressive, nasty one, to do whatever dubious is needed to get them the best result.

  • godofpizza on 21/02/2022 - 13:29
    +1

    anyone remember purple bricks? didn't they try to offer a cheaper low cost option?

  • charkwayteo on 21/02/2022 - 14:01
    +2

    I sold an apartment last year, at first I listed it with a local REA went with the lowest commission I could find etc.

    I bought the place for 475k 4 years ago and the first agent said nah we can't get that price the markets dropped… he said around 420-430k he could probably get for it. I said we'll settle for 450k and the closest offer he could get was 445k after 2 months and I wasn't prepared to take that loss so I took the marketing fees on the chin..lost 2k and the deposit for the conveyancer.

    3 months later I really needed a deposit for a house and a friend recommended me this other agent they'd used. I had low expectations at that point of what my property was worth and to the 2nd Agent I said if we can get 450k I'll be happy. His attitude was night and day compared to the first agent, he had confidence.. he said to me "no worries we can get 475k for this easy leave it with me". 2 weeks later he sold the apartment for 485k. This wasn't even when the market was going crazy.

    I think a good REA can push for a better price and give a buyer that extra incentive or urge to make a good offer or create some kind of FOMO …who knows. His fees were a little higher but not by much like 1.8% vs 2.2%.

    • godofpizza on 21/02/2022 - 20:09

      the first REA still in business?

      • charkwayteo on 21/02/2022 - 20:37
        +1

        Yeah they're still around managing some rentals and do the very occasional sale but it has picked up for them this month, the prices they seem to sell houses are on average 100-150k lower than competitive agents for similar properties in the same suburb. He is a nice unassuming guy but I think that might be the problem.

        I think Ray White are a top performer in sales prices here where I'm at. They seem to constantly get high prices, I just bought a house through them and their agents are dogs… I hate dealing with them but I liked the house. They would constantly tell me my offer wasn't high enough (even when I won the auction I had first rights to negotiate.. it's all a farce). They'd tell me the next day they have another interested party looking etc etc, I gave up and said nah screw it sell it to the other guys.. next day they said seller signed on your offer congrats…

        • godofpizza on 22/02/2022 - 14:46

          the Ray White in my area is pretty much the same. Almost all of their sales are auctions.

    • MindGrenadius on 22/02/2022 - 14:46

      I didn't understand why they got as much as they did until I saw the results they help get. Sure, anyone can sell a house in this market. But the right agent will help you get much, much more than their fee.

      It's a win-win for the vendor and the agent tbh. The only people that lose are the ones that can't get in or buy anything because agents give the property growth a lot of oxygen, which is a growing number of people

  • bobolo on 21/02/2022 - 14:53
    -2

    Everyone hates real estate agents, until you need to sell a house

  • CouponSteve on 21/02/2022 - 17:22

    Personally, I usually don't consider properties for sale by owner. If the owner is too cheap to pay an agent for their expertise, what else has the owner gone cheap on? (plumbing, DIY, electrical?)

    I've bought and sold a number of properties and in my experience "For Sale By Owner" is always a dodgy house with a sketchy owner.

  • [Deactivated] on 21/02/2022 - 17:45

    I don't think they're necessary. A lot of them use disgusting tactics to get that best price people talk about and causing prices to be unnecessarily high despite most sellers already making huge profits, they want to milk as much as they can.

  • belongsinforums on 21/02/2022 - 17:50

    The latest south park ep lampoons agents decently

  • bobolo on 21/02/2022 - 22:09
    -3

    you can tell who the buyers and sellers are in this thread

  • pogichinoy on 22/02/2022 - 13:50

    Yes they're necessary, particularly for the owner/seller, who want the most for their property.

    Buyers can use the services of a buyers advocate, to negotiate the purchase of the property in the buyer's best interest.

  • sim36 on 22/02/2022 - 14:44

    On selling —- Yep, worth the money. Try negotiating the chosen agent's comms down on standard result - after consultation and accurate valuation, their quoted price to sell (range). Offer "kickers" for exceptional performance on results above an upper price threshold. Know your properties value and deliver low comms on standard result (not "working" hard enough) and if price reaches an upper threshold comms on the portion over and above can be X amount (what you think will fairly motivate to the better result). All this can be written into the contract with REA. Any agent that tells you this isn't/cannot be done means you're gonna need to find an agent that will work with you. There's Comms for listing your property (for example 20% of total comms, and comms for selling it 20% of total comms, with Office Principal getting the remainder, experienced agents want to do and get both list and sell comms. example for Private Sale - Auction conditions will differ and you should really know your property value.
    Numbers are an example only:
    If property is worth 1mill and range is 80 to 1mill and you agree with this offer 1% total comms (low) up to 1mill. (max $10,000)
    Condition 1.If property goes for 1mill to 1.2mill you're in the gravy, offer 3% on the overs to Agent. (max overs $6,000)
    Condition 2.If property goes for 1.25K or more offer 10% on the overs 1mill to 1.25mill. (max $25000)
    if condition 2 is met condition one doesn't apply.

  • Dr Techno on 22/02/2022 - 18:55

    Well in the hot market REA doesn't really bother you, but when the market slows thats when you start getting cold calling on the phone or doorstep .. or the famous handwritten photocopied/printed note saying we have interested buyers in your area wanting a house just like yours.

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