oc | Thursday 23rd January

Private Sale – It’s a game of Cluedo

Private Sale – It’s a game of Cluedo!

Methods of Sale (and non sale) are changing. Over the next few weeks our Masterclasses will be discussing Private Sale , Strategies and Tactics. It’s not what you know but who you know. Private Sale Negotiations rule 101 is know who you should be dealing with – the deal rules are a world apart from Auctions. If you are involved in a deal now, which one of these agents are you talking to?

Agent 1 – The Tired Agent, who really doesn’t want to go through another difficult market and if you want to offer anything other than full price – forget it, it’s all too hard.

Agent 2 – The Doorman, who is nicely dressed and is the one who gives you a brochure, but to be frank he has been in real estate less than a year and he really hasn’t a clue.

Agent 3 – The Helpful Director, an owner of the company, who rolls his sleeves up, but he doesn’t take commission off the Listing Agent (10) and he could be very helpful to you in a private sale negotiation.

Agent 4 – The Senior Agent – he has got another buyer (your competitor), who has a house to sell – which puts you behind the eight ball should your offer be similar and you have no house to sell.

Agent 5 – The Good Quality Agent, whom you have met a few times and wants to help you because that is how she earns a living. But the Listing Agent has to share commission with her and by bringing him your name she will be halving the Listing Agent’s commission- so that doesn’t make you the Listing Agent’s favoured option.

Agent 6 – The Dropkick – sometimes buyers actually talk to these agents and think they are getting the ‘good oil’.

Agent 7 – The ‘Taker’ Director, who is an experienced agent, and runs the company but may not be favoured by the Listing Agent in terms of information, as he is a director who takes a large piece of the pie at commission time for nominating you as ‘his’ buyer.

Agent 8 – The Opportunist Agent – she knows you are a long shot but she wants the commission and will tell you a figure way above acceptable because it’s her only chance of getting the offer over the line. It’s just so good that if you were to agree to it, the Listing Agent has to take it despite losing commission. Great for the vendor, not so good for you the buyer.

Agent 9 – Your ‘Owner’ – ever wondered why you speak to one agent who seems helpful and then all of sudden never rings you back? That’s because when he went to follow you up he saw that your name was entered into the computer by another agent. That other agent ‘owns’ you and as your ‘owner’ he is the only one who will get a buyer commission should you buy. Big disincentive for other agents to help you.

Agent 10 – The Lister – he actually knows what is going on, he signed the seller up and has the ear and usually the trust of the seller. He is really the only person you should be talking to (providing you know what to say).

Please note that not all selling agents operate under these systems of commission sharing arrangements. And most of our experiences with quality Listing Agents have a high level of truth. Also the large majority of Listing agents act in the best interests of their principal – the seller. Our point is not about the Listing Agent and their integrity to their client, the seller (we repeat the integrity is usually far higher than selling agents are given credit for). Our point is about the private sale system you as a buyer face and what happens if you are talking to the wrong person.

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