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Viewing 7 posts - 1 through 7 (of 7 total)
  • Profile photo of glengaryglengary
    Participant
    @jamesbi
    Join Date: 2014
    Post Count: 45

    Hey guys I was driving past lots of "for sale" houses today, and there were a few I was interested for my 1st Property. I than searched these homes up online and found the prices they were selling for. I was thinking would it be unethical to drop a letter in their mail box or give them a knock on the door for a private sale to negotiate a price lower so they don't have to pay agents commission? But also wondered if they are under a sales authority if they can cancel?

    Is this a bad thing?, If this is very unethical please tell me it will be great to get some feedback. I thought as my 1st property I could atleast try this to knock off some thousands haha

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    Hiya

    They'll have to pay the agent commission regardless. It's also a bit harsh IMO – whilst some agents are a pain in the a** – there are some decent ones out there who are simply making a living.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010

    No can do. They will still get the commission, and this is a little dodgy to say the least. The vendor has taken the agent to assist with the transaction, it's best to talk to them directly.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Tamara43Tamara43
    Participant
    @tamara43
    Join Date: 2012
    Post Count: 57

    Hi Newbie

    Whilst the seller is contracted to the Agent for the period of the Agency Listing Agreement, there is nothing wrong with them selling to you privately after that expires. My theory is if the Agent can't sell the property in that time then tough luck.  No reason why you can't put a note in their letter box explaining that you're looking to buy privately and recognise they have an Agreement, but you're happy to wait till that expires and if they don't sell then they should contact you. I've done this numerous times and it works well.  Good luck! T43

    Profile photo of CatalystCatalyst
    Participant
    @catalyst
    Join Date: 2008
    Post Count: 1,404

    If you have seen the agents sign THEN put the letter in the agent may still have a claim. It's about who introduced you to the property.

    There have been many court cases where people have changed agents but sold to a person first introduced by the first agent.

    The seller needs to read the contract.

    Profile photo of Matt_ArnoldMatt_Arnold
    Participant
    @matt_arnold
    Join Date: 2006
    Post Count: 142

    +1 Catalyst

    Because your interest in the property is a direct result of the agents advertising the agent is entitled to their commission, even if you wait until after the agency agreement expires (eg. Sign comes down) to approach the vendor.

    Depending on how long the property has been on the market the agent may be your best friend… Eg. If they are sick of having it on their books in an attempt to get it sold, they may talk the vendor down in order to get your low ball offer accepted and themselves paid.

    Profile photo of Matt_ArnoldMatt_Arnold
    Participant
    @matt_arnold
    Join Date: 2006
    Post Count: 142

    +1 Catalyst

    Because your interest in the property is a direct result of the agents advertising the agent is entitled to their commission, even if you wait until after the agency agreement expires (eg. Sign comes down) to approach the vendor.

    Depending on how long the property has been on the market the agent may be your best friend… Eg. If they are sick of having it on their books in an attempt to get it sold, they may talk the vendor down in order to get your low ball offer accepted and themselves paid.

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