All Topics / General Property / Choosing a selling agent

Viewing 20 posts - 1 through 20 (of 26 total)
  • Profile photo of tomoritomori
    Member
    @tomori
    Join Date: 2004
    Post Count: 13

    Hi there,

    Have thoroughly enjoyed reading these forums; learned heaps over the last few weeks.
    One subject I haven’t come across yet, is:
    How do you go about selecting a selling agent? Has anyone got a system or checklist they use?
    (Or perhaps this topic has been covered so if anyone can point me in the right direction ….)

    I’ve got a few IPs which were bought some years ago, & now considering selling 1 or 2. I use managing agents but may not necessarily want to appoint them as the selling agents.
    Jenman has a few tips like:
    – ask agent ‘what will you do to get the best price for my property?’
    – interview at least 2 agents
    – keep looking until you’re happy (with the agent)
    – no auctions or open house
    – is the agent a skilled negotiator?
    – pay no money until property is sold
    – if the agent is more interested in lowering your selling price than getting buyers to raise their offer, find another agent

    Would like to hear other, expert opinions – this’ll be the 1st time I’ve ever sold IPs if I go through with it.

    Thanks in advance.

    Paul.

    ‘The main thing is to keep the Main Thing, the main thing’

    Profile photo of aluminatialuminati
    Participant
    @aluminati
    Join Date: 2004
    Post Count: 40

    Tomori,

    Speak to at least 2 agents if not more.
    Make sure they do not flog you for seperate advertising costs. Even if they do not sell they will bill you for that. Get them to roll all their costs into one fixed fee or percentage and make this INCLUSIVE of gst.
    Remember you are hiring them.
    Dont neccesarily go with the cheapest. Sometimes the agetnts you hate dealing with when you are an investor are the ones that work best for you when your selling.
    Use this time also as a time to build a relationship with a local agent that can come in handy for the future with information and letting deals.
    aluminati

    Profile photo of elbowgreaseelbowgrease
    Member
    @elbowgrease
    Join Date: 2004
    Post Count: 22

    Why do you need to sell your IPs??? Is it to get the $ out of them to spend elsewhere.. if so there are other options. If you don’t ‘have’ to sell… don’t!

    Profile photo of JackFrJackFr
    Member
    @jackfr
    Join Date: 2003
    Post Count: 34

    probably wouldn’t sell either…

    however if you must I would have thought Jenman would be the authority in this area, so it seems you’re on the right track…

    Profile photo of Tasman PropertyTasman Property
    Member
    @tasman-property
    Join Date: 2003
    Post Count: 126

    Hi Tomori,

    comments from others are worth considering – if you want to free up capital for more deals you could just refinance to get at the equity in your properties. However if you feel the market is changing downward, or if you are in NSW and want to avoid the new stamp duty on exit, or simply want to take some profits (which contrary to some opinion is NOT done by refinancing since you are not locking in a value on your property unless you sell) and decide to sell…

    I would firstly as an investor determine what your lowest price to sell is. This is the critical part, finding an agent to obtain that sale price is a secondary issue. Ask yourself a series of “If someone offered you $x today – would you take it?” What is your bottom line for the property?

    As an investor your bottom line will depend on how quickly you want to sell. For instance if you have another deal in mind that you need deposit for quickly, and there is a good profit in this deal then you may be prepared to ‘sacrifice’ a few $ selling your own IP to be able to do the new deal. On the other hand, if there is no other deal to do and your IP is doing well then you may be prepared to list it and sit it out for top $ offers. Its up to you.

    Choose an agent that will help you achieve what you want to do.

    John.

    (I believe that later this year there will be no +CF deals left in NZ, so I’ve moved here to invest full time. I can find +CF deals for your NZ portfolio for a fee, just email me.)

    Profile photo of jancrowsjancrows
    Member
    @jancrows
    Join Date: 2003
    Post Count: 122

    Hi Tomori
    There has been alot of usefull discussions about “selling” and agents recently refer

    https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=8362&whichpage=2

    and alot of resource material on here as well.
    Agency web sites also have tips for sellers. So have a good read.

    Depending on where these properties are & your proximity to them ( sell yourself ??) or what/where are the likely potential buyers source ??

    From all this if you plan to engage an agent write up a list of what you expect them to do for you & your home sale !!!
    Get this confirmed in writing from them with a quote of suggested ask price and their respective “lump sum” fees as suggested by Aluminati from a good 1/2 dozen or more agents in your area.
    From what the agents tell you as a suggested asking price work out what you wish to list it for. They’ll differ… beware of some agents who shoot a high price to “buy” your listing.
    Keep an open listing with all agents is what I would do. On a genral property I wouldnt give anyone a sole listing. The truth is agents like to get 100% Commission and not have to share with another agency.

    Check out their respective web sites, advertisiments, previous vendor dealings for the quality of their service & marketing.
    Visit each office prior and/or ring them and see what their service is like ( pretend your a buyer) as this will gauge how your potential buyers will be treated.

    I could write a book here but wont.[baaa]

    [biggrin]

    Regards

    “Do not follow where the path may lead. Go instead where there is no path and leave a trail” Ralph Waldo Emerson

    Profile photo of yackyack
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    @yack
    Join Date: 2003
    Post Count: 1,206

    <<<<<Keep an open listing with all agents is what I would do. On a genral property I wouldnt give anyone a sole listing.>>>>

    I disagree. I would only appoint an agency and only give them 6 weeks. This is important as most agents try and get you for 3 months and they just wait for you to reduce price.

    I got this from Jenman and I saw it happen to my brother. They did nothing and just wanted him to reduce price.

    If you give them 6 weeks they know they have not got long before you may go else where. And your not tied to them for a long time.

    I am also in the process of looking for an agent. I intend to select the managing agent but only for 6 weeks.

    Profile photo of Bluejayice31046Bluejayice31046
    Participant
    @bluejayice31046
    Join Date: 2004
    Post Count: 2

    I personally dont believe in the Jenman system and i am an agent, i think the best way to find an agent is to go with someone you feel you can trust and do some research in the area about prices so you know yourself if they are trying to get your business by putting a high price on the property. So many agents do this and it really narks me, there is also the vendor who sometimes has unrealistic views on how much their property is worth which is hard sometimes to make them see it really is not worth that much.
    The reason i dont belive in the full jenman system is because it is impossible to do every single little thing he says and also showing one person at a time its just way too hard, it is way too time consuming and lot of people do prefer to inspect at opens. I guess its personal taste but if you go with an agent who isnt Jenman and you dont want an Auction just tell them!!

    Profile photo of Bluejayice31046Bluejayice31046
    Participant
    @bluejayice31046
    Join Date: 2004
    Post Count: 2

    just reading someone elses post i would like to add that giving an agent 6 weeks to sell a property is insuffucient time simply because of how the market it is at the moment. Also keep in mind once you sign that agency agreement some solicitors take 2 weeks and sometimes more to get a contract for sale to us and we cannot advertise a property until we have this contract and then by the time it gets in the paper there is another week so there is 3 weeks already gone and we are unable to promote your property so therefore it leaves us with only 3 weeks to do something. So its fine to say you will only give an agent 6 weeks but keep in mind these other things. If you want 6 weeks of productive selling time then you should definately have the contract ready for the agent to use when appointing an agent.
    On another note, Open Listings generally do not work because it is not a guaranteed commission to them where a Exclusive is. Agents usually will not spend any money advertising listings that are open simply because there is no guarantee that they will recover their money and alot of them also think well its an open agency i better work hard on an exclusive because at least i know i will get paid for that and the opens get left behind. Obviously its your choice how to sell your property but thats just some insight how alot of agents take to having a small period to sell a property when it isnt Auction and how they think to open agencies.
    If you want to discuss further you can email me at [email protected] as i only come to the boards every so often!

    Profile photo of yackyack
    Member
    @yack
    Join Date: 2003
    Post Count: 1,206

    <<<<<that giving an agent 6 weeks to sell a property is insuffucient time simply because of how the market it is at the moment. Also keep in mind once you sign that agency agreement some solicitors take 2 weeks and sometimes more to get a contract for sale to us and we cannot advertise a property until we have this contract and then by the time it gets in the paper there is another week so there is 3 weeks already gone >>>>

    Yes – i understand that but, but if I am not happy after 6 weeks then I can walk. But if I sign for 10 weeks then I cannot walk if I am not happy.

    Profile photo of RussHRussH
    Member
    @russh
    Join Date: 2004
    Post Count: 342

    I feel like telling my RE agent where to go at this very moment.Ive just spent the last hour doing a quick clean because he rang out of the blue and wanted to bring some one thru straaight away.Then he turned up and said the guy wont look cause its too close to the road.What a [email protected]#@@[email protected]# I told him all houses are close to the road and sent him on his way.Grrrrrrrrrr!!!!!
    Still dont feel better even after [email protected]$#@[email protected]
    Russ[grrr]

    So many +CF properties in Western Australia.Let me help you. And we can achieve a win win situation.Russ.0438 659 411

    Profile photo of Nathan BirchNathan Birch
    Participant
    @nathan-birch
    Join Date: 2004
    Post Count: 189

    Hey,
    i agree with blue jay c i am an agent aswell and open listiung do not work
    you are everybodys listing and nobodys responsiblity and you do not get best results interview 3 agents and see which one you feel most comfortable with. ask them to negotiate fee and see what they say if they do, dont go with them because if they r happy to throw their money away they wont mind throwing yours away, find the one which closes the hardest and has best negiotiating skills and advertising campaign but all inclusive.
    just my thoughts Nath.

    BTW where r ur props and how much do you want>?

    Profile photo of yackyack
    Member
    @yack
    Join Date: 2003
    Post Count: 1,206

    <<<<i agree with blue jay c i am an agent aswell and open listiung do not work you are everybodys listing and nobodys responsiblity and you do not get best results >>>>

    Look I totally agree. Sign an exclusive agreement, not an open listing.

    I also dont want to sign for a long period of time. Six to eight weeks should do it. If its not sold, then consider why and keep the existing agent, if you dont like what the agents doing then you are not tied to a $^%$^%$& agent and you can leave.

    I saw it with my brother. He had no option as he just signed the standard REIV form and it was like 120 days or something like that.

    Profile photo of yackyack
    Member
    @yack
    Join Date: 2003
    Post Count: 1,206

    And another thing. I dont totally agree with the Jenman system either. But I have learnt heaps about real estate agents by reading his book ‘Dont sign Anything.’

    The agent I an currently working with is NOT a Jenman agent. But I told him, I want it sold in 6-8 weeks, I am not going to auction and I only want a sign out front and you pay advertising as serious buyers would be knocking on your door to see properties and you should have their details.

    Profile photo of kay henrykay henry
    Member
    @kay-henry
    Join Date: 2003
    Post Count: 2,737

    tomori,

    If you’ve had the property managed by a RE, why not ask for a market appraisal from that agency. It’s obligation free. I used the same RE agency and it worked for me- I like doing things in a “one-stop shop” kind of way. For me, it became a partnership between the selling agent, the property manager, and the tenants- we all worked in a coordinated way- very good!

    Regarding charges, I agree with the others- sometimes it “pays” to pay a little more. In discussions with my agent, I wanted to pay maximum (for their agency). I could have paid a reduced price, but I wanted “maximum service” if you will. It was better for me, because at a time, things got a bit complex, and I felt the agent was totally out there doing his best for me. Sometimes if you pay discount rates, you might get discount service. It’s a bit like a mechanic carwash or a handwash- you get what you pay for.

    kay henry

    Profile photo of tomoritomori
    Member
    @tomori
    Join Date: 2004
    Post Count: 13

    Hi everyone,

    Many thanks for all your great ideas & suggestions. Will be proceeding on a more informed basis!

    For those interested: the 2 IPs are in Sydney – Burwood & Parramatta. They are very nice units slightly better (only just) than hordes of similar built in these areas over the last 6 years. I’m expecting around 385 – 390k each.
    Have independent valuers report & managing agent’s estimate which tally very closely.
    Am persuing commercial IP with land/development potential in outer Sydney which I feel has much greater potential over the next few years than Burwood/Parramatta units. I’ll be putting all realised CG, COH, as well as finance into the new deal. Will leverage off retained IPs (all +geared, also in Sydney) & PPOR. I figure why leave large amount of CG in IPs which IMO will flatline for the next few years (better to double 500k than 250k, for example).
    The new tax is a pain as the market may distort over the next few months, but shouldn’t influence me unduly.

    Cheers, Paul.

    ‘The main thing is to keep the Main Thing, the main thing’

    Profile photo of theloanarrangertheloanarranger
    Member
    @theloanarranger
    Join Date: 2004
    Post Count: 47

    Just a thought..

    I’m a strong avocate of selling privately, although with IP’s it’s far from straightforward. BUT when you decide to sell, take the time to write to your tenant, and give them first option. (After all, they must like the place – they chose to live there). Not a great chance of success, but phrased correctly the letter will keep your tenants onside during the sale process.

    Re RE Agency – no-one seems to have mentioned Sole agency (an Open listing with just 1 agent, but you retain the right to sell yourself without paying comm. They sell it, they get paid.
    Am strongly in favour of limiting agency to a few weeks – if the service is good you can happily sign another agreement each time it expires. Guaranteed to keep the Agent reporting back to you and on his toes..

    theloanarranger

    Profile photo of Nathan BirchNathan Birch
    Participant
    @nathan-birch
    Join Date: 2004
    Post Count: 189

    Hey paul
    the unit in parramatta i might be able 2 help u out there i am located in baulkham hills.

    Profile photo of bjc10bjc10
    Participant
    @bjc10
    Join Date: 2004
    Post Count: 1

    I have always been a strong supporter of jenman as I believe he has the best interest of the consumer at heart. As such i decided to use one of his “approved” agents to sell my PPOR.Be aware that in order to be able to provide their money back guarantee they will usually underquote hoping that you are naive enough to accept it which I didn’t. (I did sell through him under my terms for 23k more or 18% above his quote).Additionally they will still hit you up for advertising costs on top of the commission despite what Jenman has said about vendors paying advertisement costs. My place sold in less than a week in a heated market to a couple that saw the sign and stopped. As I was watering the garden I gave them a look around and had a contract the next day. Yep i still had to pay the commission[angry2]. In hindsight i should have made the time to sell it myself…doubled my money anyway though[biggrin].

    here’s my favourite quote.
    “Don’t wait for the light at the end of the tunnel.
    Stroll on down and light the bloody thing yourself”
    – Sarah Henderson-

    Profile photo of jancrowsjancrows
    Member
    @jancrows
    Join Date: 2003
    Post Count: 122

    Yack
    If you sign up a sole agency – exclusive agency check the agency agreement form it means they have pre invoiced “YOU” for their commission bill in most cases. This includes even if you find a private buyer during the time you still have to pay commission. As already pointed out here….and not many folk are aware of this.
    You lose all rights in some cases to sell the home privately.
    A win/win is if you have your own private sale sign out the front, agent can list it “soley” if you wish but agreed that you would only pay commission should they be the ones who introduce the buyer to the property.

    I totally agree that a 3 month sole agency period is lengthy………it raises the question is my home going to take 3 months to sell ??
    In a strong selling market agents like to stitch up as many sole agencies as possible as their guaranteed commission.
    Other agents lose control in offers passed by their buyers on the property as well.
    Eg. Real estate x puts an offer of $405,000 on a $420,000 property. Mr sole agents buyer wants to offer $405,000.
    Which offer will the Mr Sole agent pass on or try to up ?? The one with 100% commission payment or the 50% one. You as the vendor would not know that Real Estate x buyer may have considered paying $410,000.

    [blink]

    Id still like the opportunity to have been dealing with the 2 agents and any private buyers direct. So what if I have to pay advertising fees – I can put my own adds in the paper. The R/E agents expect you to pay advertising in most cases.

    Regards

    “Do not follow where the path may lead. Go instead where there is no path and leave a trail” Ralph Waldo Emerson

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