Choosing the right real estate agent?

[MotoGirl]

I am currently attempting to sell my house and after it being listed for months, we’re not getting any bites on it. Our agent has been laying the pressure on us to drop the price by $20,000 and start paying for advertising at a minimum cost of $300 every 12 weeks. No free advertising is provided.

Considering the current market and the circumstances in which I’m selling the house, I’ll be damned if I will spend money to advertise a house that we’re selling at a loss (which I’m anticipating to be about $80K).

I begrudge anyone putting pressure on me and this company has had its shot, albeit without success. So I have decided to kick my agent to the curb and replace him with someone who’s prepared to expend the effort and get the job done.

My problem is that I’m getting baffled with choosing a replacement agent. I’ve done some research and commission rates alone have huge variations between companies. My sister is also caught up in the mess that’s put our houses on the market and her one is listed with Ray White. The difference between Ray White’s commission rates and a company like Harcourts is astronomical – about $5K on a house sold for $500,000.

I want an agent who is prepared to work for a commission and get the job done; I also don’t want to pay a fortune to get a good one. How do I find the right agent for a reasonable price? Does the company matter in terms of their advertising strategy and commission? Advice please!

P.S. Keeping the house or renting it out is not an option.

[steve_t]

Whereabouts is the house?

[hayd3n]

why not sell it on trademe?

[sidecar bob]

So they want you to take a fall on the price, but they wont take a hit on the commision??
And it will make their job so much easier if you take a fall.
What are they doing that you cant?
Try advertising it yourself with the $300 & see what you get.
All an agent does in effect, is talk shit, nothing more, nothing less.
Try a private sale.

[MotoGirl]

why not sell it on trademe?

This particular agent/company doesn't list on TradeMe. The company is one of those buggers that has its own magazine so my house doesn't even appear in the Property Press. We only picked this company because every other property in this neighbourhood was listed and sold with them. Our house is the only one in the suburb that hasn't sold.

It's not a poxy house so I can't comprehend why it's sitting on the market, especially because more expensive houses have sold in the same street.

[MotoGirl]

Whereabouts is the house?

Tauranga, Pillans Point to be precise (a good area).

[MotoGirl]

So they want you to take a fall on the price, but they wont take a hit on the commision??
And it will make their job so much easier if you take a fall.
What are they doing that you cant?
Try advertising it yourself with the $300 & see what you get.
All an agent does in effect, is talk shit, nothing more, nothing less.
Try a private sale.

Yes, they expect us to do all the work, i.e. drop the price and pay for advertising. I decided to ditch that company when I realised that I'm doing all the work!

The problem is that the house needs to go and I suspect a private sale would take too long.

[sidecar bob]

This particular agent doesn't list on TradeMe.

Well hes a friggin munter. Dump his hopeless arse.
Could you please PM me basic details of the house, location, number of rooms & garaging etc. we have been looking to upgrade for a few months now.

[Madness]

The problem is that the house needs to go and I suspect a private sale would take too long.

I'm in the market at the moment (not in Tauranga though) and it seems private sales are turning over pretty quickly up here, if the price is right anyway.

List it on Tardme as a clapped out lawnmower or summin' with a free house thrown in, that shit seems to work too.

[Winston001]

There are no special secrets to selling a house. The key issue is for buyers in your price range to know about it. That requires advertising. Newspaper, property press, Trademe, sign on lawn, stand on the roof in your nightie and sing arias - whatever it takes to draw attention.

However in a recession houses are price-sensitive. It could be that the buyers in your area and price range have dried up.

You are entitled to stick to your price but after many years experience I can tell you that asking too much will jinx the property. Buyers will start to wonder whats wrong and as the price falls, shy away. Seems odd I know but it happens.

A good agent is someone who has been in the business a long time, has a good reputation, and has happy clients refer others to them. To find one you need to ask around and KB is as good a place to start as any.

I'd always recommend a general listing - never a sole agency. The more agents working for you the better.

[hospitalfood]

i think sell it yourself on trademe.

[Patch]

Tauranga, Pillans Point to be precise (a good area).
makes little difference especially if its the worst house. Could be many reasons why its not selling - but given the season why are you surprised things are slow :weird: go figure


buy a copy of the kiwi property investor magazine - you might learn something

[Big Dave]

I want an agent who is prepared to work for a commission and get the job done; I also don’t want to pay a fortune to get a good one. How do I find the right agent for a reasonable price? Does the company matter in terms of their advertising strategy and commission? Advice please!


I interview representatives from what I believe to be reputable firms and collect their appraisals. As many as it takes till you find one you like.
Treat them like anyone who you are going to employ.

Seek references. not necessarily from the agents - but from other people who have sold or bought property.

Lay 'em all out on the table, even spreadsheet them.

Or you can chuck all their business cards in the air and the one that lands closest to the middle of the table is it. Sometimes that might have worked as well.

[p.dath]

Consider the amount of time the agent has been "in business". Agents who have 20+ years of experience under their belt do so for a reason. It means they have actually made a living from doing what they do, and that means selling houses.

Those only in the trade for 2 or 3 years are a riskier proposition to take on.

So my tip, find someone who has been doing it for a long time.

[HenryDorsetCase]

This particular agent/company doesn't list on TradeMe.

That seems to be one of the issues. We've been kind of (not really seriously) looking at upgrading. I look at tardme and realestate.co.nz. then maybe I will look at individual company websites. What buyers want is a house they can afford in the area they want to live in.

I loathe the cult of personality that agents try and cultivate. I would not turn my back on 95% of agents if I had my wallet in my hip pocket. I have struck the odd good one. Occasionally.

Think of real estate agents as drug dealers. No one really needs them, but they have insinuated themselves as middlemen into the process such that now both parties seem to think they are a necessary part of the process. The only thing an agent can do for you is access media which you are not able to access yourself (obviously apart from tardme).

remember a FIFTY THOUSAND DOLLAR hit on your sale makes a difference of less than a grand to the agent in the pocket. thats why they will tell you anything you want to hear to get the listing, then "work" your expectations, anything to get a sale because the difference between sale and no sale is a lot but the difference of fifty or 80k to you is fuck all to them.

if the retard you've hired isnt exploiting every avenue available to get a sale, then kick him in the nuts and find someone who will. Or sell it yourself. It isnt difficult if you are organised. Spend a grand, get a LIM report, a building inspection report, title search and such, bundle it up in a folder, and give it to serious punters. It will speed up the process,

sorry, I'm ranting.

Oh, and what Winston said: recommendation, audition, choose.

[MaxB]

An article in the Listener (or Herald?) I was reading today that said house prices have to fall a lot further than their current level. This is mainly due to prices being so out of step with wage levels. Money is also harder to buy. The other backstops of immigrants and retirees looking to invest have also dried up.

As for choosing the right agent, personally I go for word of mouth from the clients.

The only bright spot is that where you might want to move to has also got cheaper.

We are staying put for now. A lot of my friends are overcommitted mortgage wise and they are hurting.

I notice that some estate agents are still operating in price bands and not percentages. Who cares if they cost you 50k they still get the same commission?

[awayatc]

If you find a good agent....
have a good look around wherever you find one.....
bet you the toothfairy and father Christmas will be found in the very same place.....

[crazyhorse]

This particular agent/company doesn't list on TradeMe. The company is one of those buggers that has its own magazine so my house doesn't even appear in the Property Press. We only picked this company because every other property in this neighbourhood was listed and sold with them. Our house is the only one in the suburb that hasn't sold.

It's not a poxy house so I can't comprehend why it's sitting on the market, especially because more expensive houses have sold in the same street.

I've sold my house privately before. Yes, list it on Trademe, and place an add in your local paper on the popular nights (here in HB they would be Wednesday, Friday and Saturday).

If your house is priced right, you will attract good buyers, esp if you say it is in a good area. Contact your lawyer about obtaining a sale and purchase agreement, after all, the most important thing is getting the deal signed. By the sound of it, you have nothing to lose. However, you need to out of your contract dates with the agent you have signed up with, and be careful, because if your private buyer has viewed your home through the agent, they could try to go you some commission.

Good luck

[MotoGirl]

makes little difference especially if its the worst house. Could be many reasons why its not selling - but given the season why are you surprised things are slow :weird: go figure

The season appears to have bypassed the other properties in this neighbourhood because they have all sold within weeks of being listed, and this is in the last month. It's not even a price range thing because the unit at the end of the road sold for $300,000 yet the two properties a few doors down went for $500-600,000.

[BMWST?]

The season appears to have bypassed the other properties in this neighbourhood because they have all sold within weeks of being listed, and this is in the last month. It's not even a price range thing because the unit at the end of the road sold for $300,000 yet the two properties a few doors down went for $500-600,000.

there is nothing magic happening here. people liked other 500 000 houses in your area more than yours. find out why by going and looking at similar priced houses with an open mind and compare to yours. you can try to negotiate a commision. the actual $ ammount of the commision will drop too if the selling price drops

[MotoGirl]

Thanks for the advice everyone!

[Blackbird]

I know this example doesn't help in your situation MG, but there are good 'uns out there. We bought our current place initially as a holiday home so were dealing with one of the the local real estate agents at long range (Richardsons of Coromandel). Not only did he represent both parties absolutely openly with great communications, when the deal was done, he asked us whether we wanted him to keep a key (at no cost) so that when we only used it as a holiday place, he would nip round and open up if we wanted anything delivered, or for local tradesmen etc. He's been as good as his word and since we moved here full time, he still pops in for a coffee now and then. Good business sense going the extra mile. I guess that in a smaller community, poor service also gets around as evidenced by the local Century 21 closing its office.

[MotoGirl]

I know this example doesn't help in your situation MG, but there are good 'uns out there. We bought our current place initially as a holiday home so were dealing with one of the the local real estate agents at long range (Richardsons of Coromandel). Not only did he represent both parties absolutely openly with great communications, when the deal was done, he asked us whether we wanted him to keep a key (at no cost) so that when we only used it as a holiday place, he would nip round and open up if we wanted anything delivered, or for local tradesmen etc. He's been as good as his word and since we moved here full time, he still pops in for a coffee now and then. Good business sense going the extra mile. I guess that in a smaller community, poor service also gets around as evidenced by the local Century 21 closing its office.

Yes, I can see how this type of relationship building makes you happy to deal with them.

The agent that initially sold us this house over two years ago still keeps in contact. He knows it's on the market with another company but he keeps in touch with us anyway. We were very impressed with him and have considered getting him to sell it again for us. The reason we haven't jumped into this is because he works for Harcourts and their commission rates are really high.

[Qkkid]

Yes, I can see how this type of relationship building makes you happy to deal with them.

The agent that initially sold us this house over two years ago still keeps in contact. He knows it's on the market with another company but he keeps in touch with us anyway. We were very impressed with him and have considered getting him to sell it again for us. The reason we haven't jumped into this is because he works for Harcourts and their commission rates are really high.

You need to negotiate the selling commission price, i have done it many times myself. Best advice put it on trademe there are more houses being sold there than anywhere else in the country. That was on the news just recently :yes:
Good luck

[MotoGirl]

You need to negotiate the selling commission price, i have done it many times myself. Best advice put it on trademe there are more houses being sold there than anywhere else in the country. That was on the news just recently :yes:
Good luck

Yes, this is what I'm thinking myself but I don't know to ask him to drop the commission. They charge 3.95 on the first $400,000 then 2.5 percent on the remainder. A company like Ray White is 3.95 on the first $250,000 then 2 percent on the next $300,000. Should I be aiming to get the commission down to the level of the other company?

[bsasuper]

My first house brought in NZ was through a agent and I struck a deal for 2% commission, dont be scared to ask or feel stupid for asking,their first reply will be "oh no i cant do that its company policy blah blah" but tell them it will decide if you buy or not.

[Winston001]

There is an Australian Neil Jenman who has written a couple of books and calling for ethics in real estate behaviour. I can't find his articles online but did see his ideas in North and South or the Listener 5 years ago. He's an ex-agent and spot on.

See if you can find his book in the library. Lots of negative stuff online about him because the real estate industry is huge and they have criticised the guy every chance they get. They hate him which by itself tells me he is on the right track.

Martin Hawes has sensible advice too.

[F5 Dave]

Just about to say Jenman's book 'Don't Sign anything'

Also there is a couple of others about selling privately

Find a good agent? Look in the mirror. All the other feckers don't care if you make full price. All they want to do is;

1. Make kickbacks from selling advertising (really)
2. Open homes to meet new victims
3. Then Flick it on with minimal effort, if they get many sales it doesn't matter how cheap they go for.

Look at most agents. Slimey worms do best, the rest are just people who have lost their real job & are trying this until they realise that there is little money in it for all but the top sales people. These people aren't decent negotiators & have no vested interest. They leave after making no wages & no commission. The top ones know the rules 1-3 above.

I sold my own place before Trade Me took off with house sales. I did get a few cocky wanker agents calling to tell me how they could do it better & one asked me if I had legal training in house sales. I said "No but I'm betting my lawyer has a damn sight more than you do"

Agents (generally speaking) have no legal qualifications. Your lawyer is all you need. Also avoid the companies selling private sale packages, they are nothing but predators. Read the books & try it out, esp now with Trade Me.

Generally private sales get more money & no commission.

But do pay for a registered valuer to give you a realistic house price for your house. Not a trumped up one. This may cost you $400 but at least you know what it is likely to sell for (with a report of similar sales in the area compared to your house), not the lies an agent will tell you to win the business. (Then crunch you to lower it).

[MisterD]

Can someone explain why nobody (ok not exactly nobody) selling a house in this country is prepared to put a price on it? When we were hunting for our current place I got sick and tired of going to open homes and having the agents ask how much I thought it was worth...the look on their faces when you say "You're the expert, you tell me..."

When I get around to moving on, I'm just going work out how much I want for it and put it on sale for that +10%. Works fine in London why not Auckland? When it comes down to it, with an agent you're paying for one thing only - their mailing list.

[The Stranger]

I want an agent who is prepared to work for a commission and get the job done; I also don’t want to pay a fortune to get a good one. How do I find the right agent for a reasonable price? Does the company matter in terms of their advertising strategy and commission? Advice please!



Is it really for sale? If so, the answer is easy.
Deal with the agent who is selling the most in your area. If there are a few stand outs (but there is probably only 2 or 3) check with them all re price and cost. You can always negotiate on fees.
You probably already have a fair idea who is who just from the signs out about the place, then ask about their sales figures.

If you already have the best, then you probably have to get realistic on the asking price - or get lucky.

[Hiflyer]

Ok I can't be bothered reading all the posts so sorry if it has already been said, but my mum used to work for Ray White, and they rip you off according to her, and my GF's mum is selling her $3.4mil (down from $5.5mil) house through Barfoot and Thompson so that has got to say something...

PM me if you don’t believe me, I'll prove it to you.





Jordan

[MaxB]

Yes, this is what I'm thinking myself but I don't know to ask him to drop the commission. They charge 3.95 on the first $400,000 then 2.5 percent on the remainder. A company like Ray White is 3.95 on the first $250,000 then 2 percent on the next $300,000. Should I be aiming to get the commission down to the level of the other company?

So the agent would get about $17k on a 450k house which is by no means unusual these days. For doing what exactly? No wonder it is an unpopular profession.

AFAIK European agents get 1-2% and they seem to do alright.

[awayatc]

my GF's mum is selling her $3.4mil (down from $5.5mil)

PM me if you don’t believe me, I'll prove it to you.

Jordan

Could you PM me picture of your GF's Mum....?

[shafty]

Hi MotoGirl, you know where we lived (<1 km from you and Cajun) - we managed to sell ours privately for $500,000. More would've been nice, but we did great considering all factors involved.

Shelley St was approx our 7th private sale over the years and since I've been in sales for years couldn't see what someone else could do that I couldn't.

For example, I gave the neighbour who is an Agent, the opportunity "to pitch" for the sale - he brings his "Skite book" over..........."I sold this house on the first open home, - and this one on the second open home" etc HELLOOO, just a reminder as to why I should again do it myself - imagine a few weekends work, ME paying the advertising and him collecting $XXXX?

Another Agent knocked on the door and said "I have a client who loves this street and has just sold her home blah blah" . Because we knew the Agent, gave her the chance, the mystery buyer never materialised even months later.

I know at least one Agency has a reputation for "over valuing" to get the listing = and then there's the "lets see what the market tells us blah blah" - in other words using the public to bring the price down.

All said and done the market will tell you, but I have found by spending money on getting some professional photography done, using TradeMe, getting photo signs made up for the front lawn, timing MY open homes (which are essential) with other Open Homes near by, arrows on the corner and a professional Open Home Flag (have one for sale BTW!) and colour printed flyers and open home register when people arrive, has saved us thousands.

I tend to let people wander around (so long as not dodgy) and have one more than 1 occasion given (admittedly someone I sorta knew) the house key for the afternoon "Heres the key take a few hours to have a look around, make a coffee etc and leave the key in the box" Puppy dog sale.

Good luck!

[MotoGirl]

Can someone explain why nobody (ok not exactly nobody) selling a house in this country is prepared to put a price on it? When we were hunting for our current place I got sick and tired of going to open homes and having the agents ask how much I thought it was worth...the look on their faces when you say "You're the expert, you tell me..."

An agent would tell you this is because he or she doesn't know how to value the house. This is the line of shit we got fed because (apparently) there are no comparable houses in our neighbourhood. Houses like ours aren't overly common because it has 3 bedrooms, an office, storage room, and 80sqm of garaging - all within 5 minutes drive of Tauranga's CBD.

We got told to drop the price to compete with lower spec properties, which were also further away from town.

[vifferman]

It bugs me that agents don't work for the person they're representing (buyer or seller) but solely for the commission. If they're supposed to be selling the house for you, then they shouldn't be pressuring you to drop your price. They do so, because it makes very little difference to their commission, but a LOT of difference to you. Also, it pisses me off that you have to pay for all the expenses incurred, on top of the commission, yet you are the one taking all the risks. We were fortunate with our last sale (Tauranga) in that all the costs were covered by my wife's employer, otherwise we would have lost a lot of maney on the sale. As it was, after two years of ownership and putting $15k and a LOT of effort into making the house less shitty (I completely rebuilt the kitchen), we broke even.

The house before that (Christchurch), we got the agent who'd helped us when buying it to give us a free valuation. We then had a sign made up, put some ads in the paper and in the school newsletter, and sold it within a week for what we wanted for it. Cost? Around $300, most of which was the sign. We were fortunate in that it was a popular area, and we had quite a bit of passing traffic.

[Winston001]

Ok, if you want to know what your house is worth, here are a couple of baseline methods:

1. Calculate the investment return. In NZ the long-term average for residential property is 7.7% (sounds a bit low to me).

On $500,000 that requires a rental of $740 per week. Would you get that? If so, the price is fair.

2. How does the price fit as a multiple of the average income for the area? Historically NZers have priced houses at 3.75 times the average income. Higher income areas have higher prices.

However by 2007 we were buying houses at 6 times the average income. That could never continue.

Everything ultimately comes back to average. Don't believe that? Have a look at our sharemarket.

[sidecar bob]

Have to say, that kiwibiker is probably not a bad place to advertise a property if that meets the site rules.
Thanks for the tour Motogirl & Cajun.

[HenryDorsetCase]

An agent would tell you this is because he or she doesn't know how to value the house. This is the line of shit we got fed because (apparently) there are no comparable houses in our neighbourhood. Houses like ours aren't overly common because it has 3 bedrooms, an office, storage room, and 80sqm of garaging - all within 5 minutes drive of Tauranga's CBD.

We got told to drop the price to compete with lower spec properties, which were also further away from town.

you had me at 80 sq m of garaging. If its got two bathrooms I want it myself. Shipping cost to christchurch?

good luck!

[MotoGirl]

Ok, if you want to know what your house is worth, here are a couple of baseline methods:

1. Calculate the investment return. In NZ the long-term average for residential property is 7.7% (sounds a bit low to me).

On $500,000 that requires a rental of $740 per week. Would you get that? If so, the price is fair.

Everything ultimately comes back to average. Don't believe that? Have a look at our sharemarket.

So if it's only worth half that to rent, I should sell it for $250,000? Jesus, even I'd buy it for that!

[HenryDorsetCase]

Everything ultimately comes back to average. Don't believe that? Have a look at our sharemarket.

indeed there are some stellarly average performers there.

[MotoGirl]

you had me at 80 sq m of garaging. If its got two bathrooms I want it myself. Shipping cost to christchurch?

good luck!

Did I forget to mention three toilets? :rofl:

[HenryDorsetCase]

Yes, this is what I'm thinking myself but I don't know to ask him to drop the commission. They charge 3.95 on the first $400,000 then 2.5 percent on the remainder. A company like Ray White is 3.95 on the first $250,000 then 2 percent on the next $300,000. Should I be aiming to get the commission down to the level of the other company?

if you're paying for advertising offer 2.5% including GST. Are there any 1% agents up your way?

Oh and you know my advice. sell it yourself. be prepared for the ex-agent to badmouth the property to anyone who will listen though.

[HenryDorsetCase]

Can someone explain why nobody (ok not exactly nobody) selling a house in this country is prepared to put a price on it? When we were hunting for our current place I got sick and tired of going to open homes and having the agents ask how much I thought it was worth...the look on their faces when you say "You're the expert, you tell me..."

When I get around to moving on, I'm just going work out how much I want for it and put it on sale for that +10%. Works fine in London why not Auckland? When it comes down to it, with an agent you're paying for one thing only - their mailing list.

when did you buy? if it was a year or 18 months ago, they were shit scared to quote a figure because people would (and did) pay ANYTHING. Agents were continually surprised by prices and so didnt want to commit.

Now its the opposite. no one knows what anything is worth.

and if you think its bad being an agent. talk to a valuer. they are having quite the hard time at present. And they know if they get the figure wrong it can totally bite them in the ass. Hilarious.

[MotoGirl]

if you're paying for advertising offer 2.5% including GST. Are there any 1% agents up your way?

Oh and you know my advice. sell it yourself. be prepared for the ex-agent to badmouth the property to anyone who will listen though.

I'm not aware of any 1% agents in this town. What's the deal with enlisting an agent but also having the right to sell it privately and doing what Shafty mentioned?

[Winston001]

So if it's only worth half that to rent, I should sell it for $250,000? Jesus, even I'd buy it for that!

Yeah those figures are pretty startling. No, I don't think you should sell at anything like that. The calculations are national averages.

Forget for a moment you are selling a house - the secret of sales is to sell the sizzle. So ideally your home needs to stand out from the others. Borrow a Ferrari for the garage. Brew coffee in the house. Do something to make it go "zing" in a buyers mind.

But your agent should be way ahead on this anyway. Change agents or branch out and try a private sale.

[HenryDorsetCase]

I'm not aware of any 1% agents in this town. What's the deal with enlisting an agent but also having the right to sell it privately and doing what Shafty mentioned?

none at all. Its generally a thing that developers do, but there is no reason you can't do it yourself. Agents will (OMG STF??? SRSLY?) argue against it because from their perspective a sole agency works best for them. You just want the thing gone, so its up to you to set the rules of the game.

The key is putting it in your listing contract. Also make sure you read and understand the terms of that. Typically they provide that any sale to any party introduced to the property during the term of the agency will result in a commission being payable. Even if they come back some time after the agency has ended.

Or do two agents from different agencies, winner take all: Death Match style.

[sidecar bob]

I'm not aware of any 1% agents in this town.

Try looking in the mirror. You are she, straight shooting & on top of your topic.
Switch all the lights on, put the heater on & put some wet stale bread in the oven (try it, it smells like you are baking bread) & go to it.

[MotoGirl]

Try looking in the mirror. You are she, straight shooting & on top of your topic.
Switch all the lights on, put the heater on & put some wet stale bread in the oven (try it, it smells like you are baking bread) & go to it.

Now there's a trick I didn't know! Cheers :D

[Goblin]

So how's it going? Did you ever find the right estate agent or did you sell the house yourself?

[Forest]

Ok, if you want to know what your house is worth, here are a couple of baseline methods:

1. Calculate the investment return. In NZ the long-term average for residential property is 7.7% (sounds a bit low to me).

On $500,000 that requires a rental of $740 per week. Would you get that? If so, the price is fair.


I'm currently renting a nice place out in Opheke.

The landlord is grossing 4.5%

[Winston001]

I'm currently renting a nice place out in Opheke.

The landlord is grossing 4.5%

Woah! That is one bad investment. Many people buy rental houses and ignore the rate of return, hoping the property value will rise. When times are good this can work. But if the owner loses their job whatever, having a property you have to pour money into just to meet the mortgage is highly risky.

Which has been happening to a lot of people over the past 18 months.

[Molly]

We sold our house by running open homes at the same time as our neighbours and piggy-backing off their advertising bringing potential buyers into our area. We spent $50 having a nice sign made and also had a TradeMe listing. We'd previously tried an agent (Diane Astle's company) who was f'kin' USELESS and a total waste of money.

Anyway, my advice is to sell it yourself.