what would you do ?

Hi members,

My cousin and I co-own this house which we are putting up for sale.
Agent-B told us she had "immediate rich buyers" who would pay $1.5mil, but insisted that we signed exclusive listing with her before she brought her buyers to view our house.

Therefore, we signed exclusive authority with her and inked $1.5mil as selling price. She even worked out her commission based on $1.5mil. Property photos were taken, advertising fees were paid, property was listed online.

That was 2 months ago.

So far, agent-B had brought a few buyers, and had only one offer. The offer was $1.3mil-which we declined.
When questioned, she gave lame excuses about "market" circumstances, blah blah blah.

My cousin was approached by another agent-M who has genuine buyer who is willing to put down the offer of $1.5mil now. However, we are still tied to exclusive authority with agent-B for two more months.

I want to accept the offer, but agent-M is not willing to share commission.

What would you do if you were in our position ?

 

You have fallen victim to a common RE agent stunt - the committed buyer who vanishes once the listing agreement is signed.

And it sounds like the second agent is playing the same game. The fact that this agent is not willing to share commission is a red flag - half of something is always better than all of nothing.

You have no option but to wait out the exclusive agent condition you signed.

And, for next time, here is a hint. NEVER sign an “exclusive” contract to sell. Insist on a sole agency. RE agents won’t offer it, but will rarely decline. The difference is that, under an exclusive agency, the agent gets commission regardless. With a sole agency, you can withdraw the property from the market, (but can’t sign with another agent) without penalty. If you find your own buyer (friend wins lotto), you don’t pay commission.

And start with a 6 week agreement, gives the agent a chance to perform and you can always extend it, but it prevents the drawn-out situation you are in now.

 

agent-B would be entitled to commission during the remaining two months’ exclusive, but agent-M says it’s HIS buyer so he is not keen to share commission

 

You gave them exclusivity for four months? Last one I sold, I gave them two weeks, take it or leave it. They took it & got the price I wanted.

 

Unfortunately you fell for a common trick they use. I can imagine many unsuspecting nice folks get roped in. Not only that, 4 months exclusive is taking the **** imo.

I would call the principal of the agency and let them know how distraught you are etc etc and please share commissions moving forward. First appeal to their 'fair' sense even though contractually they don't have to. If they refuse, as a last (but effective resort) if you got the guts...I'd be turning up to multiple of their opens to have this 'conversation' in front of everyone. You'll get a negotiation with them soon after that I'd imagine.

 

If they had buyers ready, they wouldn't need 4 months exclusive.
Are you sure the other agent actually has a genuine buyer? Unless the buyer if overseas and the agent is acting as buyers agent (in which case they would get paid separately) a buyer would just come to the open and make an offer to your agent.

 

Agent-B had sold many $1-2 mil houses in the suburb. Thus, when she assured us that our house was worthed $1.5mil, and that we should opt for “auction” to let her “immediate” buyers fight for higher price, we believed her. It was one month marketing campaign + 90 days exclusive after auction date.

However, one day before auction day, she advised not to proceed with auction as her buyers would only pay $1.2mil at most. She advised we changed it to “private sale” and give her more time to get us a good price.

Thereafter … No news, no offer … till we got impatient. Then she said she had found a buyer who offered $1.3m. We declined immediately.

On the exclusive listing, we had indicated vendor’s reserved price as $1.5mil — which was the valuation figure she provided to lure us in.

My cousin and I now know we were tricked.

 

Or something is wrong with the first Agent. Maybe they haven't put it on the internet, and limited people are actually seeing it. Don't laugh, I've seen it happen, and bought a bargain due to this kind of thing.

 

Agent-M’s buyer has just returned from overseas and assigning him to help buy a house along my street.

My cousin wants to accept his offer now, then pay both agents their commissions. Cousin holds the majority share of title, and I’d normally let her decide but in this case, I don’t think agent-B deserves her full commission.

 

But how much are you willing to lose for the sake of 'justice'? If you decline the 1.5m offer, how confident are you that you can wait out the agreement and get a better offer after that?

Though until there is a signed contract by the buyer, words don't mean much.

 

It’s 2%+GST commission to each agent.

Cousin says as long as agent-B gets her 2% too, she wouldn’t care if we accept offer from another agent now.

 

That overseas buyer from China. They are not internet savvy

 

this potential buyer apparently buying the house for her son

 

You are joking, surely.

Here’s another hint - stop believing everything a RE agent tells you!

 

Ask them for a signed contract with a 10% deposit.

 

Hi Deezee,

Sorry to hear, it sounds like your stuck until exclusivity expires.

In future dealings, if an agent contacts you with a buyer - absolutely sign an exclusive agreement.

However, stipulate a shorter term allowing enough time to get the buyer through and negotiate the details - eg. 2-4 weeks.

 

I am not joking …. BUT, let me double check