Dreamr Posted 29April, 2020 Report Share Posted 29April, 2020 The biggest thing to remember is that whatever agents want in commission and sales fees, isn't set in stone .. there is nothing to say that just because the majority don't question it, doesn't make it non negotiable ... Quote Link to comment Share on other sites More sharing options...
DJM Posted 29April, 2020 Report Share Posted 29April, 2020 ^^ Absolutely, FOMO works very well with agents, especially in this time of very low listings. Make an offer on terms, your agent can take it or leave it. Having said that, I’d rather have an agent hungry and motivated not pissed off that he was crunched. Maybe go hard on the base rate but lift the upside incentive. I was speaking to a recruiter the other day who normally charges 13-16% of salary package for a placement, he is now volunteering flat fees of $3-5k just to generate some business........🤔 The other one I always strike out is the chunky press ads line in the marketing budget. EVERYONE searches property on line, who finds a property via a press ad.....? It’s like saying you need a classified ad entry in the newspaper to sell your GT3. In Vic at least, a collective of agents own the Weekly Review publication so they always say “oh you have to advertise in WR”........bullshit. Usually 5k or so saved. GC9911, MFX, spiller and 2 others 4 1 Quote Link to comment Share on other sites More sharing options...
spiller Posted 1May, 2020 Report Share Posted 1May, 2020 ^^^ we signed to go to market the week the restrictions came in and the press ad (along with the $650 video) was the first thing I shit canned. $2500 or so for the print ad and she couldn’t give me a single reason as to why I should pay it other than “people read the paper when they watch their kids at Saturday sport”. Ok. Good way to sucker customers in to paying for their self advertising. We ended up pulling out the day before photos but I’m still keen to move on as soon as some of the restrictions lift (but before the predicted market correction). Those who have done the incentive based commission structure before, I’m curious to know what sort of % you suggest for first tier and then further % on top for exceeding a certain sale price? Or would you do a flat rate with a % over the desired amount? I’d like to build something like this into the next contract I sign. DJM 1 Quote Link to comment Share on other sites More sharing options...
ArthurK Posted 1May, 2020 Report Share Posted 1May, 2020 3 hours ago, spiller said: Those who have done the incentive based commission structure before, I’m curious to know what sort of % you suggest for first tier and then further % on top for exceeding a certain sale price? Or would you do a flat rate with a % over the desired amount? I’d like to build something like this into the next contract I sign. like DJM mentioned we went down this path with one of our recent developments. Scaled the pricing from 1.1% through to 20% if they managed to get over a certain price point. The normal range was 1.1% upto 2.2% for the realistic through to the obscene price range with a decent return. If they managed to get $200K over (need to be committed pricing) that they got 20% for every $1 over $200K. Lets just say the sale smashed the local record at the time for a townhouse. It was a win win for everyone, share the love everyone benefits and the snakes in suits will sell their mothers for money. Troubleshooter, WB997.2GTS, spiller and 2 others 5 Quote Link to comment Share on other sites More sharing options...
Stephen Tinker Posted 1May, 2020 Report Share Posted 1May, 2020 14 minutes ago, ArthurK said: the snakes in suits will sell their mothers for money. Well said …...✅ Why does this surprise me ?? Quote Link to comment Share on other sites More sharing options...
Dreamr Posted 1May, 2020 Report Share Posted 1May, 2020 8 minutes ago, Stephen Tinker said: Well said …...✅ Why doesn't this surprise me ?? Fixed it for you ... Stephen Tinker 1 Quote Link to comment Share on other sites More sharing options...
DJM Posted 1May, 2020 Report Share Posted 1May, 2020 4 hours ago, spiller said: Those who have done the incentive based commission structure before, I’m curious to know what sort of % you suggest for first tier and then further % on top for exceeding a certain sale price? Or would you do a flat rate with a % over the desired amount? I’d like to build something like this into the next contract I sign. We’ve had very good results with a simple base % (1% - 2% sliding scale depending on sale price) and then 5% on every dollar over the target price. Keeps it simple and seems to provide enough incentive - they get you $10k more, they get $500, you get $9,500. We found the agent will squeeze the last $500 out of the deal rather than relax when target is met. The agent we use most often is very happy with this arrangement. GC9911 and spiller 2 Quote Link to comment Share on other sites More sharing options...
Coastr Posted 1May, 2020 Report Share Posted 1May, 2020 On 29/04/2020 at 01:44, MFX said: I have actually sold several properties myself. A few years back I had agents that including all of their bulls#!t marketing costs (still trying to sell me on putting an add in the paper where half the add was their logo) were going to take around $24k if they got their predicted $820-850k. I sold it myself in 2 days and got $910k and it cost me about $1500 to market it. Eyes wide open New YT channnel incoming - home sold by Jeff I have both benefited and lost out to agent chicanery. I think doing your research and treating them as the hired help they are is the best way. Ie don’t turn it over hands off, but if you are selling by yourself know what you have and what it is really worth. In the middle don’t accept statements as fact but ask for research and data to back it up. Good people will have done this, others will be repeating office gossip. Funnily enough I don’t see any responses from agents in the thread - do we have none on the forum? Come to think of it they do seem to like the 3 pointed star or the 4 rings. Porsche probably not flashy enough for the majority. MFX 1 Quote Link to comment Share on other sites More sharing options...
hugh Posted 1May, 2020 Report Share Posted 1May, 2020 51 minutes ago, Coastr said: Funnily enough I don’t see any responses from agents in the thread - do we have none on the forum? AMG’s seem to be the rage with any estate agents I know, more room for their golf bats. micknine01 and spiller 2 Quote Link to comment Share on other sites More sharing options...
Troubleshooter Posted 2May, 2020 Report Share Posted 2May, 2020 On 29/04/2020 at 18:44, MFX said: I have actually sold several properties myself. A few years back I had agents that including all of their bulls#!t marketing costs (still trying to sell me on putting an add in the paper where half the add was their logo) were going to take around $24k if they got their predicted $820-850k. I sold it myself in 2 days and got $910k and it cost me about $1500 to market it. Eyes wide open Jeff, interested to know where you marketed it? I sold a couple myself back around 2000 and had to rely solely on board, website, newspapers. I would not use newspapers now and wouldn't bother with Gumtree, Trading Post etc etc for a high level property. Hard to get the eyes on a personal website. Can't list on Realestate.com.au etc. I know there are a few minor type of sites like RE.com.au but I have no idea of their reach or popularity. Where would you market one now? Quote Link to comment Share on other sites More sharing options...
MFX Posted 2May, 2020 Report Share Posted 2May, 2020 1 hour ago, Troubleshooter said: Jeff, interested to know where you marketed it? I sold a couple myself back around 2000 and had to rely solely on board, website, newspapers. I would not use newspapers now and wouldn't bother with Gumtree, Trading Post etc etc for a high level property. Hard to get the eyes on a personal website. Can't list on Realestate.com.au etc. I know there are a few minor type of sites like RE.com.au but I have no idea of their reach or popularity. Where would you market one now? You need to go through one of the 'sell yourself' companies as only agents can list on realestate.com.au. Going through them they can assist along the way and post your listing up on both RE.com.au and Domain (and probably others). In times like these the agents need to put in a lot of hours to sell the place, but essentially all they do is run the opens and negotiate the deal. That's it! Your solicitor does the paperwork. If you are willing to take on those 2 tasks, they really don't do much more than that. Quote Link to comment Share on other sites More sharing options...
Troubleshooter Posted 2May, 2020 Report Share Posted 2May, 2020 Ok thanks mate that's the info I was missing, I didn't realise a sell yourself company could then post your listing on the main sites Domain or RE etc. I'm an absolute advocate for selling yourself provided a fair portion of the market you're looking for can be reached and you have the time to do the "work" and not phased by that type of stuff. The actual spiel, photography, inspections, conversations and negotiating is no more onerous or difficult than selling a high level car really. If buyers are hesitant because it's a self sell, they can always enlist an experienced advocate. Actually with the last unit I brought, I had stayed there and was in touch with the owner and blah blah she hit me up a year later wanting to sell to me but hated agents, so we negotiated a price and used an REIQ standard contract form and her conveyancer's trust for the money transfers. No RE fees for her and I used that in my negotiating as well, a win for both! MFX 1 Quote Link to comment Share on other sites More sharing options...
edgy Posted 2May, 2020 Author Report Share Posted 2May, 2020 23 hours ago, spiller said: We ended up pulling out the day before photos but I’m still keen to move on as soon as some of the restrictions lift (but before the predicted market correction). If that’s the case, I’d proceed with the photos if you can and have that ready to rock, so that when the tides turn you’re ready to go! for what it’s worth mate, we listed Wednesday and had lots of enquiries, we held our first inspections today and had a dozen groups through... a few contracts went out, so that is good activity so far. In NSW we can have one on one inspections, so not sure in SA? But don’t be deterred... we are of the same thinking as you, get out whilst the market is still good... trade up when it’s in the trough! PS - @DJM gave me lots of good insight into the commission model (thanks Doug) I’m sure he’ll share it with you too.... might cost you a few joy rides in the cup though DJM and spiller 2 Quote Link to comment Share on other sites More sharing options...
spiller Posted 2May, 2020 Report Share Posted 2May, 2020 29 minutes ago, edgy said: If that’s the case, I’d proceed with the photos if you can and have that ready to rock, so that when the tides turn you’re ready to go! for what it’s worth mate, we listed Wednesday and had lots of enquiries, we held our first inspections today and had a dozen groups through... a few contracts went out, so that is good activity so far. In NSW we can have one on one inspections, so not sure in SA? But don’t be deterred... we are of the same thinking as you, get out whilst the market is still good... trade up when it’s in the trough! PS - @DJM gave me lots of good insight into the commission model (thanks Doug) I’m sure he’ll share it with you too.... might cost you a few joy rides in the cup though Sounds very promising mate good luck with it! I am thinking the same, sell ASAP with some sort of longer settlement allowing a smooth transition into a down market as a buyer. The rules are the same here in SA...one on one is allowed. We’ve had 9 days with 0 new covid cases and there is talk of SA being one of the first to ease general restrictions. Regardless, as things begin to come away in Australia I suspect we will have a short period of chaos followed by a big lull once the temporary thrill of being able to go out again wears off and people begin to remember the true state of the global economy we will all find ourselves in. Just my gut feeling! edgy 1 Quote Link to comment Share on other sites More sharing options...
D2000 Posted 2May, 2020 Report Share Posted 2May, 2020 1 hour ago, spiller said: Sounds very promising mate good luck with it! I am thinking the same, sell ASAP with some sort of longer settlement allowing a smooth transition into a down market as a buyer. The rules are the same here in SA...one on one is allowed. We’ve had 9 days with 0 new covid cases and there is talk of SA being one of the first to ease general restrictions. Regardless, as things begin to come away in Australia I suspect we will have a short period of chaos followed by a big lull once the temporary thrill of being able to go out again wears off and people begin to remember the true state of the global economy we will all find ourselves in. Just my gut feeling! Just bear in mind with a long settlement that if the market drops a lot you might find your buyer less keen to settle and looking for ways out edgy and spiller 2 Quote Link to comment Share on other sites More sharing options...
edgy Posted 2May, 2020 Author Report Share Posted 2May, 2020 2 hours ago, spiller said: Sounds very promising mate good luck with it! I am thinking the same, sell ASAP with some sort of longer settlement allowing a smooth transition into a down market as a buyer. The rules are the same here in SA...one on one is allowed. We’ve had 9 days with 0 new covid cases and there is talk of SA being one of the first to ease general restrictions. Regardless, as things begin to come away in Australia I suspect we will have a short period of chaos followed by a big lull once the temporary thrill of being able to go out again wears off and people begin to remember the true state of the global economy we will all find ourselves in. Just my gut feeling! this is my general view as well, in Sydney at least, I think we’ll see a shift in sentiment toward houses over apartments, at least for the short term... this sentiment is held with many experts too... but on the case of settlement, I wouldn’t go long, I’d be settling promptly as @D2000 says... because no one knows what that shift will be! I’ve read everything from 5-20% (and some other higher numbers that weren’t really based on anything) I guess the point is, if we see a double digit shift downward, and unfavourable conditions... some sellers may be left holding the hot potato on long settlements! I’d be prepared to rent, may as well do it whilst it is cheap to do so... you could always add in a “lease back” after settlement is done on your current place. 55 minutes ago, D2000 said: Just bear in mind with a long settlement that if the market drops a lot you might find your buyer less keen to settle and looking for ways out Yup, sage advice I think GC9911 and spiller 2 Quote Link to comment Share on other sites More sharing options...
Dreamr Posted 2May, 2020 Report Share Posted 2May, 2020 In NSW, once the cooling off period is finished (5 working days) the buyer is committed regardless of how long settlement is. If a buyer pulls out after cooling off but before settlement they forfeit the 10% deposit they have left of the price they paid. If they don't settle on due date, interest is calculated at a ridiculous rate till done. spiller 1 Quote Link to comment Share on other sites More sharing options...
D2000 Posted 2May, 2020 Report Share Posted 2May, 2020 12 hours ago, Dreamr said: In NSW, once the cooling off period is finished (5 working days) the buyer is committed regardless of how long settlement is. If a buyer pulls out after cooling off but before settlement they forfeit the 10% deposit they have left of the price they paid. If they don't settle on due date, interest is calculated at a ridiculous rate till done. All good in theory. But committed is only as good as a court case to enforce that commitment and the buyer having funds to pay the purchase price. And a 10% deposit won’t be much good if the market has dropped more than 10%. Also best to make sure the agency agreement provides that the agent only gets their commission on a completed contract, not just an exchanged one, otherwise you’ll be sharing the deposit with them spiller and Troubleshooter 2 Quote Link to comment Share on other sites More sharing options...
spiller Posted 3May, 2020 Report Share Posted 3May, 2020 11 hours ago, D2000 said: All good in theory. But committed is only as good as a court case to enforce that commitment and the buyer having funds to pay the purchase price. And a 10% deposit won’t be much good if the market has dropped more than 10%. Also best to make sure the agency agreement provides that the agent only gets their commission on a completed contract, not just an exchanged one, otherwise you’ll be sharing the deposit with them The market in Adelaide is not near as volatile as Sydney and Melbourne so I’d feel somewhat safe with a deposit in hand, however a bird in hand... Quote Link to comment Share on other sites More sharing options...
edgy Posted 4May, 2020 Author Report Share Posted 4May, 2020 Yesterday they announced easing of restrictions for the NSW realestate industry, this will be interesting. https://www.realestate.com.au/news/nsw-on-site-auctions-and-open-homes-back-next-weekend/?rsf=ps:facebook:news:nsw Quote Link to comment Share on other sites More sharing options...
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