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Do you tell a selling agent they won't be your PM?

Discussion in 'The Buying & Selling Process' started by MsAli, 5th Jul, 2015.

  1. MsAli

    MsAli Well-Known Member Premium Member

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    Hi All,

    Faced a bit of a dilemma. I say things as they are however held back this time. Spoke to this agent who said he would send us his listings as he would make money through property management anyway...

    I was short of saying...by the way, our Property Manager on the ground will drop by to take a look at the property for us!!!!

    I didn't want it to work against us so didn't say a word!

    What do you do?

    Cheers
    MsAli
     
  2. Pistonbroke

    Pistonbroke Well-Known Member

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    Just get them to send through their blurb for consideration/comparison.

    Then go with your preferred pm.

    Keeps the selling agent on the hook.
     
    York likes this.
  3. Heinz57

    Heinz57 Well-Known Member

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    Just did this. My property manager took care of everything. I have previously sent my PM to inspect property. In a small town (!Brisbane!) everybody knows each other anyway
     
  4. MsAli

    MsAli Well-Known Member Premium Member

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    What did you say to the selling agent? Was he expecting/hoping he'd manage it for you? Did he sell it to 'you' with hope he'd be the one managing?
     
  5. Chilliblue

    Chilliblue Well-Known Member

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    We were in a similar position wanting to use our own PM and not the selling agent.

    We planned to hold out as up to two weeks prior to settlement before advising them.

    Howver, settlement is two weeks away tomorrow and the agent has made it easy to say no. They've never bothered answering our request to forward any information.
     
  6. Heinz57

    Heinz57 Well-Known Member

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    Never brought the subject up. Once it was unconditional my PM made contact and asked for copies of the files and on settlement day picked up the keys and accounts.
     
    MsAli likes this.
  7. Bran

    Bran Well-Known Member

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    This is a curious topic to me. I've never known sales agents to be property managers, or vice versa.
     
  8. MsAli

    MsAli Well-Known Member Premium Member

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    They may be a Principal and own the rent roll. Passive income for them...and staff managing properties.
     
    Bran likes this.
  9. D.T.

    D.T. Adelaide Property Manager Business Member

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    They're probably not, but there's incentive to keep the property within the same agency to keep making money for the agency.
     
  10. Rixter

    Rixter Well-Known Member

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    Just go through your purchasing DD as would normally be the case.. If the property stacks up and you secure the purchase then organise your own PM.
     
    York and MsAli like this.
  11. Magnet

    Magnet Well-Known Member

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    We just said "thanks but we will go with our PM as she has inspected a lot of properties and has organised trades for a small Reno but we will keep you guys in mind for future purchases"
     
  12. HUGH72

    HUGH72 Well-Known Member

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    Never gave it too much consideration, on occasion I have gone with the selling agent's company if they have been proactive in wanting my business and only if their fees were competitive. Generally I have always bought in different area's of a city or cities so I don't have any one agent managing multiple properties. This may change if I buy more in similar locations.
    I have had one PM trying to get me to consolidate a couple of my places on their rent roll for a small fee reduction but I haven't taken the bait yet.
     
  13. MsAli

    MsAli Well-Known Member Premium Member

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    Depends on how good the PM is. Especially when buying interstate.

    In Sydney all our properties are with one agent and I believe we pay as someone else would. We know that a good service comes at a price and wouldn't ask for a reduction. Though PM prices are a lot more competitive in Sydney so that helps.

    In QLD we know who will get ALL our business for PM. We may negotiate at some point but happy to pay 0.2% more than others given the service provided is unparalleled....and never seen...not even in Sydney!
     
    Leo2413 likes this.
  14. HUGH72

    HUGH72 Well-Known Member

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    Care to share? I know one I would recommend, one which is okay and a couple I wouldn't. I have found a few who actively look for additional properties you may have and offer a small discount.
     
    MsAli likes this.
  15. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    I've come across some (not many) agencies who pay the sales people a commission for referring business to their PM department. But apart from that, sales people (at least the smart ones with a longer term business outlook) like to retain a property within their agency's rent roll, for a potential resale at some future date (property turns over every 6-7 years on average).

    To answer the original question we normally would wait until 1-2 weeks from settlement to advise an agency either way.
     
    MsAli likes this.
  16. DanW

    DanW Well-Known Member

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    Usually the agent wants to get it sold, sales commission is always better than rental.

    However we did have one problem buying in Brisbane late last year, it was a townhouse with an "onsite manager". So the onsite manager was the sales agent, the property manager, the strata manager, and the maintenance manager, plus the handyman for all the landlords!

    We had negotiated a great price on the sale, but he was also interested in continuing the management and sold us the benefits of having onsite instead of offsite manager. We listened, and said we would consider it even though we have our excellent PM managing the other properties (Lu Bracher).

    However, this onsite manager had so many additional fees that the end result worked out to 15% if we calculated fees annually. We said no in the end, and put it with Lu.

    I think he had counted it as a done deal, was upset and spammed us constantly trying to change our mind for a few weeks.

    Moral of the story - tell them upfront that you only "Use 1 PM for all your QLD properties" because it's easier to manage.
     
    MsAli likes this.
  17. dabbler

    dabbler Well-Known Member

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    LOL...amazing how lazy many people are, this would work many times over.
     
  18. Big Will

    Big Will Well-Known Member

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    Say you would consider it but you do have a preferred PM who manages your current properties.

    Then if you still like your preferred PM them tell them or give them 12 months if they sounded alright.
     
  19. Chilliblue

    Chilliblue Well-Known Member

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    At the end of the day we choose our own PM for our properties but always a good idea never to burn the bridge.
     
  20. Jamie_Monkey

    Jamie_Monkey Member

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    We're awaiting settlement of our next IP whilst is tenanted until later this year and is currently managed by the selling agency. When I discussed with our existing PM about bringing it across from day one I was told that 9/10 purchases with existing tenants has a change of PM up front. In her words "you win some, you lose some".

    That being said, there is nothing wrong with playing dumb to the selling agent. Once you've got the deal done, you have no obligation to them anyway.