Comments on: Real Estate Agents Can Benefit a For Sale by Owner

By: H2O

H2O — Mon, 19 Jan 2009 23:14:14 +0000

A couple of facts.

We have sold realeastate privately before in the city. We are now in the country and find a totally diferent scenario. We sold a property about 15 years ago and negotiated a reduced commission with the agent which would probably not been possible in the city. Recently we were approached by a real estae agent who offered to drop the commission in order to get the listing, the reason I believe as one of the previous comments pointed out is the state of the market. The tactic we used to procure this offer was to offer the property to the agent ‘when things pick up’ as it would be a waste of time for both of us at this time trying to achieve a fair price.

Secondly, I agree that realestate .com is a major impediment to private sellers and wonder if anything can be done to break this virtual monopoly? Any suggestions?

By: T-Bone

T-Bone — Sat, 22 Nov 2008 11:45:28 +0000

As long as http://www.realestate.com.au remains the number one real estate portal in Australia and agents continue to control it and not let private sellers list properties then agents will remain in control of the industry.

By: Adam Hearne

Adam Hearne — Sat, 22 Nov 2008 09:12:05 +0000

This is all very interesting so real estate agents do control the industry. Is there ever going to be a proper alternative to using an agent?

By: Micky

Micky — Sat, 22 Nov 2008 01:05:27 +0000

Thanks T-Bone

By: T-Bone

T-Bone — Fri, 21 Nov 2008 11:02:05 +0000

Basically, the point was that the majority of property buyers search for property using the major real estate portals and not private selling websites.

Agents are likely to know what properties are for sale in their suburb regardless of where they are listed on the internet as they will see the for sale sign or someone from within their office will.

An agent might know a private listing is on the market but a property buyer will not. So unless the agent tells the property buyer than the buyer will never no about the property.

This reduces the bargaining position of the property seller as they have no other way of informing buyers their property is on the market.

In the end they will give in to the agents demands!

By: Micky

Micky — Fri, 21 Nov 2008 08:56:15 +0000

T-Bone I don’t really understand what you are saying in your last point about buyers not seeing the property…..???

By: T-Bone

T-Bone — Fri, 21 Nov 2008 01:34:15 +0000

Agents will never agree to it.

1. Because it has never be done in the industry before.
2. They would be helping private sellers.
3. Without the agent passing on the details, the interested parties would never know about the property. The reason is because the property will not be displayed on major advertising portals so unless the property buyer is looking at websites like Privatepoint they will never know about it.

Agents control the industry and they always will!

By: Micky

Micky — Fri, 21 Nov 2008 00:45:37 +0000

This is spot on Amanda.

If the agent has showed an interested party all the listings they have and the party is not interested then of course any rational agent will sell the details to a property owner.

I would pay a $1,000 for the details of someone who purchased my house.

By: Amanda B

Amanda B — Thu, 20 Nov 2008 19:26:36 +0000

I think you would be surprised! I read an article yesterday that some agencies located in the country are only doing 1 sale per month. If you have a receptionist, property manager and maybe 2 sales staff then one sale a month won’t go too far. If you had any property buyers who were somewhat interested in another property then you would be likely to accept a reduced commission for passing on their details.

By: Drew Burkinshaw

Drew Burkinshaw — Thu, 20 Nov 2008 11:23:30 +0000

This is a fantastic idea but would it really work in reality, agents aren’t likely to negotiate on their commission.