[nippa&pippa]

Having just watch my usual programme "close up" tonight (my chill-out time after kids in bed for half hour...)


Seller Beware
Real estate - it's one of our biggest investments and with the market currently in the doldrums, it's also one of our biggest headaches. An Auckland family have a tale of woe that that should serve as a warning to us all. When you sign an unconditional contract to sell your house does that mean it is actually sold? Shrewd property investors would know that the sale isn't complete until all the money is in the bank, but we're not all professionals. So when a deal does fall over, and the purchaser walks away, who do you turn to? Neil and Jenny Bell, not unreasonably, turned to the real estate agent who had worked up the unconditional contract and already claimed her commission. But the Bells say they were sadly let down. The agent has done nothing illegal. She has worked within the bounds of the system and the Bell's have legal options open to them to pursue the purchaser who didn't proceed with the transaction. However in the current market the Bells believe the agent could have been more of an ally than she was. Michael Holland with a cautionary tale.

A couple sold their house to buyer under unconditional offer and buyer paid just 4% of deposit and seller paid $24,000 commission fee to estate agent as well they have brought their own new house. Expected all went well till buyer decide to walk away from the sale at last mins. Left this couple in debt with two house mortgage and $24,000 commission fee kept by estate agents even house sale fallen through because estate agent haven't broke the law and not liable to return the money back.

The couple want to send warning to everyone:-
When come to sell your house in NZ, ensure you
1. get deposit of 10% or more to cover the loss if sale fallen through.
2. Don't pay the estate agents till the sale IS complete.

I thought this might help you who is in the sale at the moment as "it's not uncommon" as quote on TV :eek:

[NZ Hopeful]

That is just awful, how on earth can the agent get away with that?!

[CJ22]

How can the agent claim $24K commision???

[Philip10]

Thanks for the post

[dave&louise]

Unbelievable !! and we thought Estate Agents in the UK were charlatans

Thanks for the heads up

D&L

[KerryS]

I saw this as well. The agent sold the house to someone who negotiated a 7 month settlement clause, and the couple selling accepted both the clause, and only a 4% deposit. The agent had done their work in finding a buyer, so in the eyes of the law they were able to claim their fee for selling the property... The sellers went ahead and purchased another property unconditionally before the settlement on the old one, which then fell through. I think the show highlighted the fact that many people don't actually understand what the process and legal clauses involved in selling - and the sellers in this case didn't want to involve lawyers due to the expense, which I found rather mind boggling.
I did feel sorry for them though.

[CJ22]

What I meant was, how come the agent's fee was so high?? That's £10,000!

[nippa&pippa]

Their house was supposed to be sold for nearly $1 million (I think $948,888) and brought other house for less as they want to downsize to improve their cost of living...

[BaldyBeardyBloke]

Just goes to show what we all thought - you can't trust an agent as far as you can throw them. They will always protect their own interests firat and foremost, understandably I suppose.

Do as we did, talk to the vendor and see if you can work out a way of cutting out that agent and complete a private sale. It's not hard to organise.

The problem is, of course, if you've first seen the house via an agent they could be aware of your interest, so look for private listings on TradeMe first so the first contact is through the vendor direct, not the agent.

Worked for us, and the vendor was happy to knock off the price what the agent would have charged them, so everybody wins.

Trouble with this, of course, is that most houses are only listed through agents, so as a buyer you are limiting your options. As a seller however, seriously condsider listing on TradeMe privately as well as with agent.

[incredible hulse]

What I meant was, how come the agent's fee was so high?? That's £10,000!

Thats 'only' 2.5% which is not bad over here. We got quoted 38k which we laughed at and spoke to other agents :mad:

[KerryS]

What I meant was, how come the agent's fee was so high?? That's £10,000!

As Incredible Hulse said, that's actually quite a reasonable sum for an agent over here.
I was quoted 3% for the first $500K and then 1.5% for anything over that, plus GST. Some were even worse!
I eventually sold privately, as I was in no rush, so saved myself quite a bit.

[sizzlingbadger]

Agents fees are very expensive here BUT they only receive commission only. If they don't sell in the listing time then they pocket NOTHING. It's not like the UK where agents work 9 to 5 and get paid a wage, letting the house owner do all the viewings and leg work half the time.

I work for quite a big real estate company here and work very long hours for nothing. It's extremely hard and especially in the current market. I also work for the house owner not the buyer as it seems the agent was working for when she presented that offer. Shocking doesn't even cover it :no

The home owners should have been aware of a lot things and smelt a rat with the low deposit and very late settlement date. It is a loophole and something that does need to be put across to people that unconditional doesn't mean people will not pull out unless it's at huge financial cost. I still cannot understand why that potential buyer walked away from an unconditional offer without severe financial penalty. Considering the agency didn't sell the property they shouldn't have taken the commission, ok they found the buyer but he didn't complete.

One big mess that should never have happened :no

[pinkpiggy]

I think you just have to be very sensible and if in doubt, consult your lawyer.

As BBB said we bought our house privately through Trade Me. However we know that the original agents tried to persuade the sellers to put it on the market when the outside of the house was being painted and was only half finished. :no Can you imagine how that would have looked? Luckily for us the sellers refused. If it had been me I would have chosen a different agent.

I still can't get over the fact that agents take photos of rooms with people in them and gardens with people hanging out their washing. Not a good look. :exit

[cathgates]

Hi Paula, yes, some of the photos took a bit of getting used to at first:laugh
Dirty pots in the sink, beds unmade and why do they take so many photos of the same room?
Thanks for the advice at the top of the thread will keep this in mind once we eventually get there!!!!!!!

Cath X

[NZ Hopeful]

Is the settlement clause similar to our exchange and completion? If so 7 months is just crazy :eek:

[CJ22]

I must adsmit Dusk and I have been baffled and amused by the bizarre photos of properties in Trademe. We've only been looking at rentals, but I imagine properties to buy are much the same. 3 shots of 1 corner of one room and no other pictures! One picture of a bit of roof and guttering, plus the shed. A shot of the house from 50 yards away so blocked by trees all you could see was the door. Kiwis have some very odd ideas about advertising :)

[zardell]

. Kiwis have some very odd ideas about advertising :)


They also have some incredible photographers!! Exactly the same here in Oz.

If they can make old and tatty look new and clean and make small rooms look huge, I wonder if they could make me look thinner?

:D

Julie

xx

[cathgates]

"make me look thinner".......... me too me too:yes

Cath XX