Value of real estate agent

Apologies if there is a similar thread somewhere or this has been discussed heaps.

With the buyers seemingly lined up for miles on any and all properties (in Brisbane), I've been wondering how much value a real estate agent adds. I can't imagine its especially difficult or expensive to get a listing on realesate.com.au.

If you're selling a house and prepared to do your research, does it really make sense to give a real estate agent thousands of dollars when the buyers are so keen? Obviously you'd need to be confident as a negotiator, but that would be the case for many people.

I am a new buyer, so I have quite possibly overlooked aspects of an agent's role that may not be so simple to take on as a vendor. Do agents handle the contractual side of things with a vendor's lawyer? Could you just engage a lawyer without an agent?

 

Yes

 

There are for sale by owner etc services. In a hot market that might make sense.

sometimes its because sellers cant be objective. Sometimes they are not confident they know the rules, or might be interstate.

how does this relate to you as a buyer?

 

Just something I was thinking about. I attended an open home on Saturday being hosted by the vendor's, and I was also speaking with an agent yesterday who told me he feels some agents are treating vendor's poorly because of the current high demand.

I can see how a vendor being too emotionally invested may be detrimental to their interests, and therefore having an objective party handle negotiations is of benefit. But are agent's objective, with the vendor's best interests at heart? Not always, of that I am quite sure.

Another pitfall I assume owner sellers encounter is buyers thinking they can take advantage of someone operating outside their area of expertise and make offers lower than they ordinarily would. Still, with the sheer volume of buyers, I reckon you'd get enough genuine market offers.

On balance, I'm surprised I'm not seeing more owner sellers.

 

I have thought about it and honestly, most times I see a listing from an owner, I can tell. Full of dodgy stuff, pictures of the dog, proudly advertising non-approved modifications etc. (I'm not making it up).

In a market like it is now, these listings sell, and often at a high price. It may also scare potential buyers, because they don't want to purchase from a nutjob - what else does he have in stock?

 

*I have only ever sold via/thru a REA

Next time I will be contacting various buyers agents FIRST
I know roughly what my property is worth, V's what I want !

As a future vendor/seller, I have my eye on the property on the other side of the street
The day it goes to market I will have a sign up "for sale" to view apply/call Xxxxxxxx
The place over the road has better views, but mine is far more livable
Let's say the place over the road sells for $2.2M, those that miss out will still be looking, so I can negotiate based on saving $30k plus on agents fee's and $5k on advertising
REA have their place, they really set the market (quote prices, then negotiate, to meet the vendor/buyer average) for Joe Average that doesn't want to know (divorce sale cases as an example).
When you add it all up...
Vendor want's $1,000,000 walk away....
Add in REA costs $40,000
Then $35,000+ stamps
Costs to buyer $5,000
Total buyer cost $1,080,000.....

Having $30-40k haggle room can be handy to get a sale over the line

 

Going to neighbouring opens/auctions and finding unsuccessful buyers could be a great strategy

 

A RE agent is trained for extracting every last dollar from buyers.
Some don't even do it for the money anymore, just the satisfaction of getting a higher price than someone else would.

Most people looking for a property will go where the bulk is, and so the local REAs are the first call. More bidders higher price.

Selling by owner will often attract low ballers and hustlers who assume the owner is a noob with little idea how to negotiate and they're buy it cheaper.

 

No. your lawyer does.

Absolutely yes.

However, as a buyer, this is a deal breaker for me. I wouldn't want to negotiate directly with a vendor and tend to ignore private listings. There are a lot of red flags for me if vendors are trying to sell without an agent.

If cost is an issue and you believe your property can sell itself, hire the cheapest agent you can find!

 

Thanks for your response. What are some of the red flags? To me it just seems like a vendor wanting to save money by doing what an agent does - isn't that a fairly reasonable motivation? Who doesn't want to save money?

 

If they think they're better than an agent at getting the best price, they also tend to think they're better than an engineer, a building inspector, an electrician, etc.

But hey, they sell. I was tracking this listing, because I wasn't sure if the house was sold with or without the dogs
https://www.domain.com.au/20-hythe-street-pialba-qld-4655-2016798616

 

It will be a lot harder negotiating with a vendor directly. They would be more likely to drive a hard bargain if they aren't ready to forgo 2% of sale price go towards agent commissions plus with just $200 in listing fees on the line, they can quickly change their mind and not sell.

That's just my opinion and there may be buyers willing to deal directly with a vendor but it will reduce the buyer pool for sure.

 

Hmm, I guess that could be something to be wary of. I don't think it would necessarily stop me from purchasing though, provided you do the usual diligence.

If I had a property to sell right now, I am 99% sure I would go it alone (apart from the legal stuff).

 

Definitely, but in the current mad Brisbane market, I think the pool can stand some reduction.

 

Why wouldn't you take it to an auction and sell 10-15% over private treaty prices? I would go to auction every time if the property is within Brisbane City Council.

 

I think a good agent is worth their fee in any market. I have recently sold a property that the vendor was looking to sell privately for well more that $100,000 more than I sold it for within a week of it going to market. Pretty sure they will be stoked to pay my fee.

 

you wouldnt think that if you are selling.

 

I have bought three times of a vendor (not agent). All three i have been happy with.

There is no point a vendor pretending to be an agent.

My belief is it is easier to deal directly with vendor given then have not polished their delivery and the real thing (ie. the bricks and mortar) is generally able to be seen.

I was (always) conscious of the vendor emotional attachment, but it never got in the way. Never had an issue.

On the other hand, i have a problem with property that photographs well being the 'thing' that ppl are buying. Is it really a good idea to buy the homes 'selfie' with its lips puckered and painted, with all the real things masked and the brightness of the home akin to a hospital?

Those that attend public trustee auctions will often find sales made on real value, bricks and mortar, modest advertising, and representation that is not slippery. The same feel is with self marketed properties.

Opinion only.

 

60% are average, 20% dangerous and 20% expert, if you get the latter then yes, it's worth it.