Getting the highest price through conjunctional agreements
If you are listed with an agent, you either wonder if another agent can get you a better price or you find out that could you need to know what you can do about that.
Unfortunately, in this situation it is very difficult to do so, this is due to policies agencies have in place to stop this happening.
If the agency does allow a conjunctional it can mean a reduced commission for the agent you have signed with and this may end up costing all involved more.
At Apartment Specialists we don’t agree with this policy and allow other agents to sell the apartments as well as we believe that we can get the highest price and owners are getting the most out of the market. This allows you to be in control.
Andrew Murray, Apartment Specialists, talking about the Auckland apartment market and what happens when you are an owner and you list with an agent but in the back of your mind you're thinking, I wonder if that other agent can get a higher price?
Let's be honest. There's a lot of different agents and agencies out there especially in the Auckland apartment market. So what happens if another agent can get a higher price when you are listed with another agent?
Unfortunately, the situation is, that other agent, in most cases, will not be able to take a buyer through. Or if they do, it's made very difficult or financially inviable. And what I mean by that is, in this market there are agencies that have policies where they will not do conjunctional agreements with other agents. Or at best, it will be referral and it's another agency who will do conjunctionals. But it will be at a reduced commission. Maybe it's 30%, maybe it's 40%, maybe it's 20%. What happens there with an agent who has a good buyer, they are going to be put off. And who loses out? The vendor. This is really, really important.
Now, what we have done to sort of change this problem is - what we do is - we basically say that any agent from any agency can sell your apartment with equal commission. It doesn't matter if it's auctioned, it doesn't matter if it's listing with a price or tender. Any agent in the whole of Auckland or New Zealand can sell your apartment. We do that so you as owners know that you're getting the most out of the market. The thing is, a lot of these agencies will - this is their policy that they don't - they have certain policies that restrict agents from other agencies selling the apartment. But what you can do is as an owner is take charge. And if you choose to go with an agent where their agency policy is like that, ask them to change it. Ask "Can you please let other agents from other agencies also sell this apartment if they come across a good buyer, and if you do, give them equal commissions splits after expenses. And can you put that in the ad so agents know." An agent should do that. I don't see why they won't because it is in the best interest of the client. What I'm saying here is, as an owner, take control because you are the boss. You are employing an agent. You've got to put these terms to them if they don't put them to you and put you in control. Hope that helps.
Anyway, next time I'm going to be talking about what method of sale should you choose to sell you apartment and how do you make that choice and what I mean by that is, auction, tender or listing with a price.