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Conjunction selling process with another agency. Advice welcomed.

Discussion in 'The Buying & Selling Process' started by Barny, 4th Mar, 2016.

  1. Barny

    Barny Well-Known Member

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    Hi team appreciate any advice you can share.

    For those that may have read in other posts, I'm currently selling a place in Toowoomba.
    It's day 44 on the market and sale process and offers are slow and low.
    The offers compared to previous and comparable sales in and around the area are much lower by up to 20k. It's priced in the lower 300's.
    Prior to the sale, we had the place painted, touched up, new blinds, new carpets, gardens, etc etc to make it really clean and tidy to best present itself. So I've ruled out that the house is the issue.

    The market is much slower than it was the previous year, but properties are selling. Since I started the sales campaign, 5 properties directly near mine have sold. They have sold for more, 10-20k more than what I've been offered, and theirs are not better in anyway. Older wooden properties at least 30+ years, fibro, garages converted to bedrooms, and even smaller block in one case.
    My place is under 15 years old brick home and better presented. It's also at this stage the best home under a certain price bracket without doubt, I don't say this cause it's mine, but it's true by comparable sales at the moment.
    So I don't believe it's the price that's an issue.

    I had a choice of 3 agents through different agency's and decided on the current agent selling at the moment as I thought he would be best fit to sell the place. The agent first began with offers over $$$, then changed to a fixed figure 2 weeks later as no interest initially. Then dropped it to by 10k and offers over amount. We are getting low balled, and other properties are selling which is making me frustrated.
    On one occasion I called the office and found out some other employee was attending the open inspections. I believe at least 2 occasions she had attended without my real estate agent there.
    So it's not the property, not the price, perhaps it's the agent?

    The add has now become stale. im not sure it's worth paying fees in advertising to place in the local paper anymore with this agency. Advised through agents in area that 60% of sales are generated through Internet, and 40% through the paper. They all recommend advertising in the local paper.
    The current market is owner occupiers looking to purchase and hardly any investors.

    So I have been in contacted with my other, second choice agency and agent. They have a different strategy in mind. Full feature add, don't place a price and let them call to find out, go hard the first week with new photos. Fresh listing will help for sure.

    Issue I have is there's at least a month to terminate the old agent. I could sell in conjunction, this will get me a fresh listing. The agents are both ok with this. At 50/50 suggested.
    Does conjunction sales really work? anything I should be aware of?

    I'd prefer the new agency to take over the sale, but time is money. Happy to wait a month and be exclusive with the new agent, if this gives the best result.

    Sorry for long text. Appreciate your thoughts.
     
  2. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    No, no real estate agency is going to work hard for you if they have to give 50% of their commission away to someone else.
     
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  3. Barny

    Barny Well-Known Member

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    Ok cheers. So exclusive it has to be. I'll wait out the contract
     
  4. Barny

    Barny Well-Known Member

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    How bout thoughts on 70/30 joint exclusive? Agent that sells it gets 70%.
    I either wait 30 days to re list with new agency, or 70/30 split which both agents have agreed are happy with.

    Still no good?
     
  5. SmashedEconomy

    SmashedEconomy Active Member

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    Since the property is well presented, no agency should have to work hard to sell it.
     
  6. Mick Butterfield

    Mick Butterfield Well-Known Member

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    Hi Barny,

    I agree that an exclusive agency is the best form of agreement (shock horror), basically if that agent does a poor job in the sales process you know who is accountable. Their is limited responsibility in an open or conjunction agreement. Which agent is to blame if it does not sell in the next 40 days? You may also find the agents working more with the buyers and less focused on getting you the best price.

    Just my 2 cents.

    Mick
     
    Barny likes this.
  7. Big Will

    Big Will Well-Known Member

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    Changing agents will mean another cost in marketing (unless agreed otherwise).

    Exclusive is the only way, one person working to get you the best price rather than just the first person to get an offer and beat you with it.

    Commission sharing is another no... Why would an agent want to get paid less and still do the same job? Wait for the exclusive period to run out and also be wary of the buyer they have introduce part.

    RE: had someone else attend the OFI, this is common practice (well down here in Melbourne), if you listed with boss of the business he is likely to put one of his staff on it for the OFI or if the agent has 20 property listings they will get one of their staff or fellow staff to attend the OFI.
     
    Barny likes this.
  8. Barny

    Barny Well-Known Member

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    Thanks for the feedback. I agree with what you and others have said. But my current agent agrees with perhaps doing it, as it will place the add back up top.
    The new advertising fees will be 1400 with a new agent. Or at least 800 to continue running the same process through the current agent.

    I'm slightly confused why my current agent would advise this is definitely a way to help sell it. Unless he's had enough and happy to take the 30% by not trying anymore.
    He also mentioned 25% of stale sales through his office will do this method with another agent.

    Is Toowoomba totally different to the rest of Australia, or am I getting shafted.
     
  9. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    You're not one of those "the property will sell itself" people, are you? :rolleyes:
     
  10. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    Your current agent is either a novice or an idiot - either way say goodbye as soon as you can. You can put the advert back on top by simply pulling the advert down and then relisting.
     
    Mick Butterfield likes this.
  11. Barny

    Barny Well-Known Member

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    Can't put the add back up till 60 days for realestate.com
     
  12. wylie

    wylie Moderator Staff Member

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    Is that through the same agent? I'm sure I've seen houses swap agencies and be back up immediately.
     
  13. Barny

    Barny Well-Known Member

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    Hi Wylie, yes advised from 3 different agency's that realestate.com will not let you put it up through the same agency. Or if you try, they will take it down.
    I'll call them tomorrow to confirm.
     
  14. wylie

    wylie Moderator Staff Member

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    Do you need to advise the agency that you will be moving from them to another one in four weeks? That might motivate them to work a bit harder to sell it in that time.
     
  15. Barny

    Barny Well-Known Member

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    Just called realestate.com, it's correct. Has to be removed for 60 days or more to be able to re list with the same agency.

    In 30 days the contract will be over so I'm free to move else where at that time.
    If I go 70/30 shared, that will allow my listing to be up top again on realestate.com, through the new agency. And it will still be on the old agency website, but much lower as the add is stale on their site.

    I really do believe 100% exclusive is the way to go. but trying to work around the issues to help sell sooner if possible. I understand it's not common in Melb or Syd or elsewhere that I know of, but some agents tend to agree that they do this process in Toowoomba.
    Not convinced as yet.
     
  16. SmashedEconomy

    SmashedEconomy Active Member

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    As a matter of fact, once a prospect turns up, thats exactly the case. Although I understand you have a vested interest in promoting a different view.
     
  17. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    We might have to disagree on this point.

    No. I buy property. I don't sell property.