Does any one have any suggestions or experience with negotiating agents commissions when selling?
I am about to place my IP on the market but would like the best possible outcome. The market is booming and the property would be fair value so it should sell quickly.
Can I add clauses e.g. “if the property sells within 2 weeks the agents receives ???? amount etc.
Any suggestions would be greatly appreciated.
Thanks
Ros
Be wary of Real Estate Agents, they are not always 100% on your side. They often side with the buyer to get a lower price from you than what you wanted.
Any sale is a commission to them, even if it sells below value…..….be warned.
It is also worth reading some of “Neil Jenmans” books to open your eyes to the dangers of RE Investing. (Although his points are often one sided and sensationalise minor issues, it is an eye opener to the RE world)
…..of course there are honest good Real Estate Agents too. They just don’t get as many sales! HA
So personally,I wouldn’t encourage a quick sale for a bonus.
What I would do though is sit down with the Real Estate Agent and make it clear what you want and what terms you don’t want to compromise.
Time to settlement (short or long)
Maximum Price or Quick Sale.
Deposit to be released early or not.
Allow Building inspections or other clauses that potentially let buyer pause all progress until they decide they want it or UNCONDITIONAL contract up front.
Vendor Finance available for all or partial of sale price.
Allow access to purchaser prior to sale for residence or reno’s.
All of these and more are things to consider.
Good Luck, I hope all goes well.
[thumbsup2]
Live, Learn and GrowLifexperience
I think 2% of purchase price is pretty good and you can bargain down further. In my case I believe people work better with a bit of financial incentive, rather than screwing them down to the inth degree. I would put more effort into selling something for 1.8% rather than 1.5%. I also believe in paying for deluxe package advertising too as I think the emotional buyers (PPR) judge the house on presentation from the start. Course if you are selling at the cheaper end of the market I would modify advtsg
Fern
In my experience selling your property is all about great marketing. If you can negotiate a lower commission rate but maybe agree to pay for some of the marketing, then this might be a solution.
In any case, if you think your property will sell easily in the current market, make sure you only sign up to the agency for a short time frame rather than the 90 day period that they usually try and pull.
Positive Cashflow NZ Properties
Email me for a current list of deals
[email protected]If it’s in QLD DO NOT take the Exclusive option. If you do and YOU sell you are still obliged to pay the Agent his Commission even if they did nothing to influence the sale!
Personally I give only open listings and make them work for it. Bring back the old days I say where the Agents worked like Dogs to sell anything they could because if they didn’t then the next one would! Then pay them their entitlements. Just remember they cannot dictate to you the terms and conditions you must engage them under. If they don’t want to work the way you want them to move to the next one…
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055We’ve recently sold a property and had great success in negotiating a commission with the agent. If your selling in Perth, the ball is definately in your court and the agent really doesn’t have to do much work. They are crying out for listings and are very flexible when it comes to commission. We went open listing and wrote our own clauses on the contract which included ‘agreed commission’ and ‘termination of contract in writing by us at any time’, so we were not locked into 30, 60 days ect with the agent. We also told the agent what we expected in terms of marketing and it happened at no extra cost to us….., so go for it!!!
sq
Think about it though – you want to have a good fight with your agent – if they end up getting you to pay what they wanted, they’re good – and you know they’re going to get the best price for your property. They’re in sales – if they can’t sell themselves to you, then they’re not worth it.
(“,) $$$ HoLdEnCoMmOdOrE $$$ (“,)
If you’ve done your recent comparable sales prices to your IP, then you take calculated risk on setting a reserve price. From there, make the agent work harder with tiered commission. For example; 2% to x amount and any excess on top of that at 4%.
Just a thought. Good luck [exhappy].
CT
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