Just doing some financials what is the real estate cut on a house that were to sell at 700k??? Would it be about 3.5% x 700k = 25k + advertising costs as well.

knoxy2006 - 2021-04-18 17:07:00

Depends on what you negotiate the fee down to. The last time we sold a house we squeezed the agent down to 1.8%.

apollo11 - 2021-04-18 17:11:00

knoxy2006 wrote:

Just doing some financials what is the real estate cut on a house that were to sell at 700k??? Would it be about 3.5% x 700k = 25k + advertising costs as well.

You pay as much as you agree to pay. Not a cent more. Totally your call.

johnston - 2021-04-18 17:33:00

Make sure regardless of the commission rate that you negotiate that you cross out the bit on the listing agreement that says “payable on going to unconditional” to payable on completion of sale” (The wording isn’t lawyer speak but your lawyer will sort it for you. Make sure you talk to him BEFORE you sign the agreement to list.)....

Good luck with your sale.

lovelurking - 2021-04-18 17:38:00

apollo11 wrote:

Depends on what you negotiate the fee down to. The last time we sold a house we squeezed the agent down to 1.8%.

The last time I sold I got 2.5% but forgot the "plus GST", should have been including. My loss

orphic1 - 2021-04-18 17:54:00

orphic1 wrote:

The last time I sold I got 2.5% but forgot the "plus GST", should have been including. My loss

Lol, they actually tried to add GST to our bill so I set my wife on them.

apollo11 - 2021-04-18 18:03:00

apollo11 wrote:

Lol, they actually tried to add GST to our bill so I set my wife on them.

Even my commander in chief missed it, but apparently it's still my fault.

orphic1 - 2021-04-18 18:13:00

orphic1 wrote:

Even my commander in chief missed it, but apparently it's still my fault.

2.5% is still pretty good going, most people don't even realise it's negotiable, especially these days with most houses selling very quickly plus huge prices being realised.

apollo11 - 2021-04-18 18:18:00

apollo11 wrote:

2.5% is still pretty good going, most people don't even realise it's negotiable, especially these days with most houses selling very quickly plus huge prices being realised.

Absolutely

orphic1 - 2021-04-18 18:26:00

Hey thanks for the insight. We just made an offer on a house and if it is accepted we'll be looking at selling ours. They've suggested an auction which I'm not accustomed to but it may be quite good.

knoxy2006 - 2021-04-18 20:03:00

apollo11 wrote:

Depends on what you negotiate the fee down to. The last time we sold a house we squeezed the agent down to 1.8%.

How long a go was that when you got it at 1.8%??

knoxy2006 - 2021-04-18 20:04:00

orphic1 wrote:

Even my commander in chief missed it, but apparently it's still my fault.

Bugger!
Is that legal?
I’m pretty sure that In the old days all prices had to be “including gst unless otherwise stated”

lovelurking - 2021-04-18 20:16:00

knoxy2006 wrote:

How long a go was that when you got it at 1.8%??

Around 2011(?) I think. It really depends on the value of the house and how much work the agent thinks s/he will have to do to get the place sold. In our case the agent already had a buyer waiting for a house like ours, so it was a done deal for him.

Edited by apollo11 at 8:19 pm, Sun 18 Apr

apollo11 - 2021-04-18 20:19:00

knoxy2006 wrote:

Hey thanks for the insight. We just made an offer on a house and if it is accepted we'll be looking at selling ours. They've suggested an auction which I'm not accustomed to but it may be quite good.

Exciting times ahead for you.
Be sure you use a lawyer. The best investment you’ll make. Talk to him/her before you do anything else is my best advice.

lovelurking - 2021-04-18 20:22:00

We sold last year using Tall Poppy and they had a set fee, rather than a percentage.

kateley - 2021-04-19 07:40:00

lovelurking wrote:

Bugger!
Is that legal?
I’m pretty sure that In the old days all prices had to be “including gst unless otherwise stated”

except for agents, its always an ongoing issue.

gabbysnana - 2021-04-19 08:23:00

we sold ours last week at 1.9% + GST

angelah1 - 2021-04-19 09:16:00

kateley wrote:

We sold last year using Tall Poppy and they had a set fee, rather than a percentage.

No motovation for them to get a good price.

Edited by curlcrown at 9:43 am, Mon 19 Apr

curlcrown - 2021-04-19 09:43:00

lovelurking wrote:

Make sure regardless of the commission rate that you negotiate that you cross out the bit on the listing agreement that says “payable on going to unconditional” to payable on completion of sale” (The wording isn’t lawyer speak but your lawyer will sort it for you. Make sure you talk to him BEFORE you sign the agreement to list.)....

Good luck with your sale.

What’s the thought process behind that?

superdave0_13 - 2021-04-19 14:39:00

curlcrown wrote:

No motovation for them to get a good price.

No less than any other agent.

johnston - 2021-04-19 14:43:00

superdave0_13 wrote:

What’s the thought process behind that?

Having a property sale fall over because the buyer was an idiot and the real estate agents were slack and needing to re market it and pay two commissions...

Once bitten twice shy.

lovelurking - 2021-04-19 14:58:00

curlcrown wrote:

No motovation for them to get a good price.

Not true. The homes in my area sold by Tall Poppy (quite a lot of them) get comparable prices to those sold by others. They would soon lose custom if their record showed otherwise.

kitty179 - 2021-04-19 15:04:00

lovelurking wrote:

Having a property sale fall over because the buyer was an idiot and the real estate agents were slack and needing to re market it and pay two commissions...

Once bitten twice shy.

And what if it's the vendor that fails to settle? Once you have a unconditional contract there isn't much an agent can do other than facilitate a smooth transition, their work is done. It's back on you and your lawyer to enforce the contract.

superdave0_13 - 2021-04-19 15:13:00

superdave0_13 wrote:

And what if it's the vendor that fails to settle? Once you have a unconditional contract there isn't much an agent can do other than facilitate a smooth transition, their work is done. It's back on you and your lawyer to enforce the contract.

Ours was a tender and it was the Real Estate Agents duty to ensure the purchaser had the finance organised to purchase. They both lied but the sleazy REA still took his commission.
We will never sign an agreement with that wording ever again.
Havent heard of a vendor pulling out after going unconditional but I suppose it happens.

lovelurking - 2021-04-19 16:28:00

lovelurking wrote:

it was the Real Estate Agents duty to ensure the purchaser had the finance organised to purchase.

Um no it's not. You've blamed the agent for things they had no control over. You had recourse through your lawyer.

superdave0_13 - 2021-04-19 17:16:00

superdave0_13 wrote:

Um no it's not. You've blamed the agent for things they had no control over. You had recourse through your lawyer.

Ummm, yes it was. The REA was meant to ensure the potential buyers had funds before they even took them to look at the property.
As for recourse through our lawyer, the purchaser was already in trouble with the law and so suing him would have been a WOFTAM.
At least we had a decent sized non refundable deposit.

lovelurking - 2021-04-19 17:33:00

lovelurking wrote:

Ummm, yes it was. The REA was meant to ensure the potential buyers had funds before they even took them to look at the property.

How were they supposed to do that?

superdave0_13 - 2021-04-19 17:40:00

lovelurking wrote:

At least we had a decent sized non refundable deposit.

Ah, so the truth comes out... The agent got you an acceptable unconditional contract AND a deposit. Sounds like they did their job.

superdave0_13 - 2021-04-19 17:45:00

superdave0_13 wrote:

How were they supposed to do that?

It wasnt too hard to google his name and see his history actually. Been in the news for all the wrong reasons over many years.... The REA told us he had researched him and also phoned a mate who had worked with the buyer who vouched for him.

Bunch of crooks, both the Agent and the “buyer”.

lovelurking - 2021-04-19 17:52:00

superdave0_13 wrote:

Ah, so the truth comes out... The agent got you an acceptable unconditional contract AND a deposit. Sounds like they did their job.

No, they didn’t do their job. Our lawyer did his though!

lovelurking - 2021-04-19 17:53:00

superdave0_13 wrote:

Ah, so the truth comes out... The agent got you an acceptable unconditional contract AND a deposit. Sounds like they did their job.

By the way, I don’t tell lies.

lovelurking - 2021-04-19 18:01:00

lovelurking wrote:

By the way, I don’t tell lies.

The agent was at fault and there's significant case law to that effect. Ignore the troll.

johnston - 2021-04-19 18:17:00

Well show us so we can see the full story. It's not an agents job to do credit/ background checks on purchasers.

superdave0_13 - 2021-04-19 18:19:00

lovelurking wrote:

Having a property sale fall over because the buyer was an idiot and the real estate agents were slack and needing to re market it and pay two commissions...

Once bitten twice shy.

According to a RA mate, it is now not uncommon for the commission fees to be due and payable on settlement. We have always done it that way and never had kickback.

The RA is engaged and paid to sell the property. It is NOT sold until settled.

tony9 - 2021-04-19 18:21:00

superdave0_13 wrote:

Well show us so we can see the full story. It's not an agents job to do credit/ background checks on purchasers.

Maybe not directly, but if a property is sold subject to finance then the RA is going to want to confirm bank approval. And they should confirm with the buyer's lawyer that cash and/or deposit is available.

tony9 - 2021-04-19 18:23:00

tony9 wrote:

Maybe not directly, but if a property is sold subject to finance then the RA is going to want to confirm bank approval. And they should confirm with the buyer's lawyer that cash and/or deposit is available.

Once you have a dated agreement and it is sent to the lawyers, It is now their responsibility as everything now is contractual. An agent does not get involved in the banking side and they can not demand the deposit. All they can do is request it from a "willing buyer, willing seller' point of view.

superdave0_13 - 2021-04-19 18:34:00

orphic1 wrote:

Even my commander in chief missed it, but apparently it's still my fault.

.

seaqueen - 2021-04-19 18:52:00

The member deleted this message.

kittycatkin - 2021-04-19 19:24:00

tony9 wrote:

Maybe not directly, but if a property is sold subject to finance then the RA is going to want to confirm bank approval. And they should confirm with the buyer's lawyer that cash and/or deposit is available.

the agent has no authority to request such and the buyer has no requirement to provide it to the agent.

sparkychap - 2021-04-19 19:56:00

lovelurking wrote:

Bugger!
Is that legal?
I’m pretty sure that In the old days all prices had to be “including gst unless otherwise stated”

nothing has changed - the agency agreement much specify that the fee is plus GST. If not stated then the fee is considered to include GST.

Edited by sparkychap at 8:09 pm, Mon 19 Apr

sparkychap - 2021-04-19 20:01:00

Well I bought the house just came unconditional today, now to look at ways to sell my house. thanks for all your comments, I'll start a new thread for selling my existing property.

knoxy2006 - 2021-04-23 17:54:00

The member deleted this message.

knoxy2006 - 2021-04-23 17:59:00