Increase in selling costs vendor's advocate

Discussion in 'The Buying & Selling Process' started by Burramys, 7th Jun, 2017.

Join Australia's most dynamic and respected property investment community
  1. Burramys

    Burramys Well-Known Member

    Joined:
    26th Jun, 2015
    Posts:
    1,921
    Location:
    Melbourne
    True, but proving this will be messy. I may inform CAV about the VA price structure and how it seems to add to the vendor's costs.

    That's an option. So far I have not seen anything that really adds much. There was an assessment of what should be done to the IP, paint here, steam clean carpets, etc. However, the selling agent would surely do this. There was a quite nice VA table showing the selling agent details, rates, marketing etc. However, I had this, and the VA table had bigger figures.

    No. There was just a citation of the REAs EPR. Even there some where quite high, and I suspect that this was to entice me to go to that REA, who would then condition me to a lower price.

    Not that I can see.

    This was not raised. When I was getting quotes prior to the VA, I sought a stepped rate. If the REA says the property will sell for $700,000 then have a rate up to about there and 10% of anything above this. I asked for an offer and got a few responses in the form cited. The VA rates are flat, 2% or whatever.

    This entire business has put me off selling. I may sell in a few years, may not. I'm no longer persuaded that the current VA model works. Anyone that wants to go down the VA track is most strongly advised to get offers from REAs prior to engaging the VA, and see what the REA offers do. If the offers increase, then I suspect that any VA contract is void. The VA deal was at no cost to me, and that has not happened, so breach of contract by the VA. I'm keeping it simple and just walking away. I look forward to a test case on Austlii.
     
    mc123 likes this.

Build Passive Income WITHOUT Dropping $15K On Buyers Agents Each Time! Helping People Achieve PASSIVE INCOME Using Our Unique Data-Driven System, So You Can Confidently Buy Top 5% Growth & Cashflow Property, Anywhere In Australia