All Topics / General Property / RE Agents do not work for vendor

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  • Profile photo of rumbizrumbiz
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    Reading countless posts in this great forum I am constantly reminded by the poster of how many people think that Re agents work for the vendor. Lets be honest now…!!! Agents will at any stage try to get the purchaser up in price and the vendor down in price to that magic contract price. Agents work for the benefit of themselves and not the vendor or purchaser. Anybody disagree with this ?

    “love the deal – like the property”

    Profile photo of TerrywTerryw
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    Couldn’t agree more!

    Terryw
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    Profile photo of AUSPROPAUSPROP
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    assuming the buyer wouldnt pay the higher price, if the agent has managed to pull a deal together to which both parties are happy, is that not in the interests of the vendor? lettign a house not sell because it is over priced seems to be in nobodies interests.

    the agent that just sold my parents house was excellent. she had the cheek to talk the buyers into a deal that seemed crazy to me but she did it and earned her commission well and truly.



    http://www.megainvestments.com.au

    Extensive list of ‘Off The Plan’ property available for sale in Perth.

    John – 0419 198 856

    Profile photo of rumbizrumbiz
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    assuming the buyer wouldnt pay the higher price, if the agent has managed to pull a deal together to which both parties are happy, is that not in the interests of the vendor?

    This is in the interests of the agent !!

    lettign a house not sell because it is over priced seems to be in nobodies interests.

    If you overprice you house you will get very little effort from your agent….what does this tell you…..the agent has little chance of getting HIS money !!!

    Im not saying agents should not get paid for selling your property…of course they should but dont be blinded into thinking they work for the vendor or the buyer ….thats rubbish…they want their commision and the faster the better, because turnover is the key to their success.

    “love the deal – like the property”

    Profile photo of Robbie BRobbie B
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    Unfortunately, many vendors are kidding themselves as to what they believe their home is worth. This is also usually the fault of the agent trying to get the listing.

    I agree that in most cases the agent works for themselves but there are the odd agents out there who still try very hard for the vendor.

    Personally, I think RE agent commissions should be capped at a maximum of 1.5%. This should weed out a lot of the crap!

    Robert Bou-Hamdan
    Mortgage Adviser

    http://www.mortgagepackaging.com.au

    Investor Links

    Profile photo of AUSPROPAUSPROP
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    1.5%…. most agencies struggle to make a living running on about 2.5 to 3%. I think it would weed out the crap ones as well as the good ones as everyone needs to make a living. If it were capped at 1.5% you would find that either (a) you couldn’t get an agent to take it on, or (b) services would be cut back quite a bit.

    I dont think there will ever be a perfect answer; homeowners feel like they are paying too much, most agents barely make wages, somewhere between the 2 there should be some common ground.



    http://www.megainvestments.com.au

    Extensive list of ‘Off The Plan’ property available for sale in Perth.

    John – 0419 198 856

    Profile photo of Robbie BRobbie B
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    You are probably right. I do not think they work hard enough for much higher.

    Robert Bou-Hamdan
    Mortgage Adviser

    http://www.mortgagepackaging.com.au

    Investor Links

    Profile photo of wealth4life.comwealth4life.com
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    Ausprop,

    If u weed out the bad ones and the good ones as well, what r u left with.

    resi

    Profile photo of AUSPROPAUSPROP
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    err…nothing. that was my point. I guess there may be a few average ones that don’t do a lot and may hope to make a few bucks for a half hearted effort…but that would be categorised as a bad agent. so yes… nothing.

    seriously I can’t imagine any agent bothering to work for 1.5%. It wouldn’t cover PI, mobiles, cars, etc. But bring it on, could be interesting



    http://www.megainvestments.com.au

    Extensive list of ‘Off The Plan’ property available for sale in Perth.

    John – 0419 198 856

    Profile photo of DazzlingDazzling
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    John,

    Surely it depends on the size of the numbers.

    The last agent I dealt with just recently when we bought our latest acquisition did it for 0.88%. Vendor showed me the cheque split from the funds I paid him and we had a chat about the fee as we literally did the deal without the agent – he was in hospital at the time and when he got out, was given a pleasant surprise.

    1.5% on a $ 10MM deal, and there’s heaps of those in the CBD’s and industrial complexes around Oz, which is 150K, you’d get a few agents taking that on…no problem.

    On the other hand, if you are selling a $50K ressy unit, the % would have to be thru the roof for the agent to make a quid.

    Cheers,

    Dazzling

    “No point having a cake if you can’t eat it.”

    Profile photo of BofclarkBofclark
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    I am not a real estate agent but I have to ask the question, don’t you work for your own benefit. I have a simple rule, I call it rule number one. “If I don’t get paid I don’t turn up”. I expect that the agent is working for their benefit. Part of their job is to bring together my inflated expection of the value of my property with the reality of the market value. You don’t have to like the market value of a property and you don’t have to sell.

    Profile photo of AUSPROPAUSPROP
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    Dazzling – you are right and I was just assuming a typical suburban home.

    Bofclark – sounds fair to me. pretty much can be summed up by “it’s a free country”



    http://www.megainvestments.com.au

    Extensive list of ‘Off The Plan’ property available for sale in Perth.

    John – 0419 198 856

    Profile photo of GrregGrreg
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    Any thoughts on why a RE agent should be paid a percentage as opposed to a flat rate?

    I wouldn’t expect a mechanic to charge me relative to the value of the car I drive…

    Imagine if solicitors conveyancing was a percentage of the contract price! And, why not the removalists and carpet cleaners..

    My point is most people and businesses work for an hourly rate.. So why is it that RE agents feel their fee should be associated with the contract price of the property?

    Cheers,
    Greg

    Profile photo of Robbie BRobbie B
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    Greg, that is a really good idea!!! I suppose this should also extend to mortgage brokers as well. The lenders are against it because one of the ways they attract new business is by paying mortgage brokers more. For obvious reasons, mortgage brokers are also against it.

    Robert Bou-Hamdan
    Mortgage Adviser

    http://www.mortgagepackaging.com.au

    Investor Links

    Profile photo of AUSPROPAUSPROP
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    “Imagine if solicitors conveyancing was a percentage of the contract price!”

    actually in WA they are. Stamp duty, rates, land tax, REA fees, conveyancing, mortgage broking, loan application fees, mortgage insurance…. all based on value.

    I like the idea though… I think taxes should be set as a fixed fee.



    http://www.megainvestments.com.au

    Extensive list of ‘Off The Plan’ property available for sale in Perth.

    John – 0419 198 856

    Profile photo of Michael4Michael4
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    Couldn’t agree more!

    [biggrin]

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