Having ‘discussions’ with RE Agent

[MEL_Traveller]

I think it’s all about getting lots of registered bidders to the auction and I’m not sure that’s a great yardstick if they are expecting a lower price. We’d rather sell to a reasonable offer prior. Must be some kind of RE kudos in getting a lot of registered bidders or something.

Aren't there potential buyers that pay for structural reports and all that sort of stuff? Then they find out that the price estimated by the RE was never in the ball=park and would never have been sold at that price. In that sense they've spent money with no hope of ever gettng the proprty. For me, that's where the unfair bit comes in, and why I'm glad there are some rules around these things in Vic.

If there's going to be some sort of quote or estimate by the agent it should be actual and fair.

 

[DC3]

Auctions have never been my thing. Agents seem to apply pressure to go to auction. The passed-in rate is pretty awful. That’s just me.

 

[Pushka]

Aren't there potential buyers that pay for structural reports and all that sort of stuff? Then they find out that the price estimated by the RE was never in the ball=park and would never have been sold at that price. In that sense they've spent money with no hope of ever gettng the proprty. For me, that's where the unfair bit comes in, and why I'm glad there are some rules around these things in Vic.

If there's going to be some sort of quote or estimate by the agent it should be actual and fair.

Reports that assess the building integrity never disclose a potential sale price. Different skills. We paid to get a building assessment due a few years ago and the auction price went sky high. Thems the risk if demand is great. Which it is in our suburb. A new offering is usually snapped up in a couple of weeks.

 

[Pushka]

Auctions have never been my thing. Agents seem to apply pressure to go to auction. The passed-in rate is pretty awful. That’s just me.

In our area they seem to sell prior.

 

[MEL_Traveller]

Reports that assess the building integrity never disclose a potential sale price.

Exactly. But potential buyers pay for these reports based on the estimated sale price put forward by sellers. Then find the seller had no intention of a sale at the price range. Very unfair.

 

[love_the_life]

Why don't you want a price point inserted? You won't sell below your chosen price and would surely sell if an offer was made at or above the desired price.

Frankly, I find any agent who doesn't put a price point in the advertisement annoying. Buyers self select according to price and will devote more attention to a property in their range.

To me no price point suggests something to hide or that something is wrong with the property.

However, this house is going to auction. It's not 'by negotiation' - auction properties are open to what the market thinks they are worth. The seller can decide or not whether to accept the final price at the auction. Real potential buyers will discuss the property with the agent and have done their homework so will have a pretty. fair idea about whether a property is in their price range,

If a house is in a desirable location and/or presents well (like this one) it is likely to sell before as the buyer is worried they might miss out, The price given on this ad is therefore misleading and if I was a buyer I'd be mightily unimpressed talking to the agent and finding that the price I saw was well under what would be accepted. There is also the risk that the agent will start pressuring the owners to accept an offer which is close to the one advertised (the idea of having a bird in the hand).

 

[coriander]

A price point should reflect the price range you're actually willing to sell.

Both you and your REA would be in trouble here in Victoria.

When we sold our home a few years ago, our agent was quoting a price point "from ~5% below"our reserve. At the auction, he declared the house on the market as the bidding hit the reserve. It subsequently was knocked down for $500k over the reserve as we were lucky to have two bidders with deep pockets. Neither the agent nor us expected such a result but I wonder what would have happened if someone had lodged a complaint.

 

[Pushka]

When we sold our home a few years ago, our agent was quoting a price point "from ~5% below"our reserve. At the auction, he declared the house on the market as the bidding hit the reserve. It subsequently was knocked down for $500k over the reserve as we were lucky to have two bidders with deep pockets. Neither the agent nor us expected such a result but I wonder what would have happened if someone had lodged a complaint.

I think that’s all fine. Sellers have no control over deep pockets at auctions. Agents can quote up to 10% lower than the reserve. Wow, what a great result.

 

[Buzzard]

When we sold our home a few years ago, our agent was quoting a price point "from ~5% below"our reserve. At the auction, he declared the house on the market as the bidding hit the reserve. It subsequently was knocked down for $500k over the reserve as we were lucky to have two bidders with deep pockets. Neither the agent nor us expected such a result but I wonder what would have happened if someone had lodged a complaint.

If the house is declared "on the market" meaning it will sell because it has reached reserve, I don't see that anything can happen. You can't just stop accepting bids, that would just be silly. However if a property was advertised for say 800 and passed in at 900, you would be asking for trouble.

 

[coriander]

Wow, what a great result.

The purchaser sold the property 18 months later and pocketed an $800k profit. Crazy prices in the late nineties/noughties....

Property then had $1m renovation and sold this earlier this year for$5.8m.

 

[Pushka]

If the house is declared "on the market" meaning it will sell because it has reached reserve, I don't see that anything can happen. You can't just stop accepting bids, that would just be silly. However if a property was advertised for say 800 and passed in at 900, you would be asking for trouble.

It has to meet the 10% rule. Advertised price +max 10% = reserve price. In SA.

 

[Buzzard]

It has to meet the 10% rule. Advertised price +max 10% = reserve price. In SA.

Which is exactly what my quoted post is eluding to.

 

[rainbowgirl]

I think there should be some sort of price, even in auctions, but it has to be a realistic price for both the vendor and buyer.

 

[Julesmac]

We are about to put our house on the market so I'm feeling your pain. We have bought and sold number of houses in the area, very successfully, thankfully. We have dealt with many agents over that time - know the one we want to use, who we consider to be a fair and honest operator. However, this time we engaged a vendors' advocate. He's already earnt his fee reducing commission and advertising costs. It's very comforting to know he is acting totalling in our interest. Seems to me agents are on your side until they sign you up and then often switch sides- because for them it's all about the earn. I'd stick to your guns and give your agent direct instructions not to advertise the price you are unhappy with. You're not getting your target market if they come in too low - who in their right mind would offer over the odds? I reckon the new requirement to give a statement of information keeps the agents more honest. Good luck with it

 

[Gremlin]

I'd stand my ground on this completely. The RE agent is acting ON YOUR BEHALF so should be doing what you ask of them.

One other point, if the reserve can't be more than 10% above advertised price, you have no recourse to move your reserve up once the advertised price is "in market". I wouldn't be giving away that flexibility at all...

 

[Pushka]

I'd stand my ground on this completely. The RE agent is acting ON YOUR BEHALF so should be doing what you ask of them.

One other point, if the reserve can't be more than 10% above advertised price, you have no recourse to move your reserve up once the advertised price is "in market". I wouldn't be giving away that flexibility at all...

Agree, that is weird but we have our former State Attorney General to thank for that. Its law. It’s based on the price we sign when we commit to the RE Agent. No choice.

We have had the meeting. The Agent has said they will say to anyone interested that this price is the starting point and is only indicative and people can expect to pay an extra 10% to get it onto the market. There is a methodology, we don’t agree with it completely but we also don’t want to leave them with any excuses.

 

[Buzzard]

We too will be selling our place. We have set a date when we want to move into our other place, the problem is now deciding when to list. We have to live somewhere. Being firm on a settlement date may not suit the buyer. We could put our stuff into storage and live with +1's sister for a little while or even go overseas and have a holiday for a month or so.
Decisions decisions.

 

[love_the_life]

We too will be selling our place. We have set a date when we want to move into our other place, the problem is now deciding when to list. We have to live somewhere. Being firm on a settlement date may not suit the buyer. We could put our stuff into storage and live with +1's sister for a little while or even go overseas and have a holiday for a month or so.
Decisions decisions.

We had a month between the sale of our old place and the settlement on the new. We put furniture into storage and moved into a weekly serviced apartment in the immediate vicinity of the new place. Worked very well.

 

[tgh]

Moving is almost beyond comprehension for us , we have been here for 40 years and plan to stay until we are wheeled out………..

 

[chelzmalee]

Im in NSW but I am a RE agent, and we don’t even advertise a price guide on auctions. Easier to not advertise and then decide on your reserve closer to the day.