Agent Pressuring to Lower Price

Hi
I was recommended to use an agent but somehow ended up with another junior agent of the same agency being the main agent of my property.

Property is in Sydney
House across the road has been on the market for a couple of months

First open house today and no viewers
Had a buyer inspect pre open house who has made an offer (20k below starting price)
Agent is pressuring me to accept the offer or lower the price after 1 week on the market.
Phone call got a bit heated with me advising him I will be talk to him on Monday and hanging up.

I understand the market is slowing down and in my mind want it to remain at this price for a month prior to lowering and see how the interest goes.
Property had a valuation done 2 weeks ago which valued it at 5k over the max price range and 55k over the value. Agent has blurted your valuation is wrong and your dreaming if you want to get this price (very unprofessional in my view - and asking price was a price range 35-5k below the valuation price)

Any advise on how to deal with this.

At this stage left a message with the principal (thinking maybe i can change agents within the agency)

 

If you're confident about your pricing, then why does it bother you so much?

I would just give my agent my instructions and ignore the rest.

 

Im not confident on my pricing but confident on my stratergy (dont need the house to sell in 1 week - titles wont be ready for atleast a month anyway)

What i do not appreciate is being pressured by an agent I am engaging. I know its part of his job but to be honest the last conversation has lost my confidence in the agent handling the sale of the property

 

Who's interest does the agent really act in?

Just remember the agent doesn't get his commission until he gets a sale.

2% of $55k is only $1100, and its not worth giving up (say) $20K on commission for a lousy $1100.

Just sayin...

 

What price is on your agency agreement? Is that lower or higher than the offer?

 

Maybe give it a few more weeks to see the responses / feedbacks from potential buyers.

Just on the personal emotion side, if you agree to the first week price, and how much will you regret if you see higher sale price from the similar properties in a few weeks.

On the side note, to many REA, a quick sale is more important than achieving a higher price in many cases.

 

Google freakanomics - realestate agents. Its quite interesting.

 

Just playing devil's advocate here... You could consider a few more weeks, but remember that can create a bit of a sense of "no one wants this" and a potential bargaining chip in a buyer's mind if you do have the pricing wrong (which given Sydney's lack of momentum is possible). If you've got an interested buyer, maybe make a counter offer? Look at other things like the area, recent sales.

If we're talking a dime-a-dozen house in a suburb with multiple similar listings, your agent is probably being realistic and managing your expectations. Wanting more doesn't mean you'll get more. On the other hand, if you're looking at a great house in a sought after tight suburb, you might be right. Get a feel for similar products, but also consider that if you had no one turn up to the open house, it's possible you're just asking too much. Another house not selling might be relevant if it's pretty similar. What's that one going for? What's the suburb?

If they think you're dreaming, can you seek a second opinion? A valuation often goes by past sales, which in a slowing market can date very quickly, and might not reflect what you'll sell the house for especially if there's a lot of stock for sale nearby that also isn't moving. I feel like in most cases agents aren't trying to mess you around, but of course a week isn't much time.

 

That's the way agents do business I'm afraid. I listed with a good agent in Melbourne only to have him call almost daily for 4 weeks for me to drop the price. I didn't drop the price and got higher than he claimed I would but dam those phone calls were annoying.

 

The key is probably this poster needs to do some research. It's possible the agent is just pushy, but I think a lot depends on the general competition. If it's a tight suburb it's probably a good idea to be patient, but if we're talking a stock standard four bedder in Oran Park or something, the agent might not be off the mark.

 

True. In my case it was a tight market with a lot of demand and low supply. The agent just wanted me to drop the reserve so he could brag to his next potential customer he achieved $x over reserve! I know this because that's how he sucked me in. Short story: don't trust agents. Do your own DD.

 

Doesn't the agent know that it's their job to negotiate tge best price for the vendor, not just to recommend that you take the first offer on the table?

Their own, they don't get paid unless they close the sale. If it means crunching the vendor, they'll do it.

Ask the agent who set the price? Who provided the guidance for the price range? Did that person know what they were doing? Are they competent? Tell them that you're fast losing faith in their ability, that'll rattle their cage.

Yup.

 

Had a friend recently go through this. Agent pressured to accept lower price, friend resisted and made agent work for it. In the end, my friend got what he wanted. Research is key to determining your own realistic price expectation.

 

Tell me about it-my property had 2 open homes and my RE guy wanted to meet and discuss if we are ready to drop the price. They didn't push me it force me but suggested that Winter is not a good time to sell (WTF-when they pitch me to sell my place they never said ,they will wait for spring), and in last 2 weeks 3 or 4 properties came in the market which I think is not true and if they did come but may not be in comparison.

They said we do not wanna change price again and again (which I agree) but after 2 open homes I really think it is not the right move. I told them that yes market is down and it takes few weeks to sell the property and our price range is as per what you suggested and what other RE agents gave me appraisal so in last 1 month all of the sudden price gone down.

At this stage , ball is in my court and I am sitting on this decision.

We got new carpet, new paint in all the main areas, close to station, property is in excellent condition and very few online enquiries and prop visits but we do not know other comparable properties are going through same or not. I did see couple of price reductions in my suburbs for the properties that were in market 4-6 weeks before mine.

 

How did you manage to get the place nearer to a station during the sales period?

 

I got the place in 2012as my first purchase

 

The truth is overpriced properties don’t move.
You need to work out whether it’s overpriced or the agent is just not doing enough.

One of the above has to be true

 

Just out of curiosity what sort of figures are we talking about as a percentage, when you talk about their offer and your minimum acceptance price.
Not sure if their is any truth to it , but was reading an article regarding valuations in turning markets , and sometimes it is based on information that is already 4 or 5 weeks old, and by the time it is written it is already out of date.

 

How do you workout weather it's overpriced?

Near by sales history, property appraisal?

 

Thanks for the replies
On a plus note managed to get a better offer (in between the previous and expected amount) which has been accepted (conditionally). Also this offer was accepted based on another opportunity.

Though agent has lost all future business (he is aware I am going to sell another house once i get it presentable) due to his pressure techniques. While he did apologize for his behaviour on that phone call, i guess these things cannot be forgotten.