6 Comments

  1. Fred Steinkellner
    August 18, 2020 @ 9:59 am

    I have read and enjoyed many of your articles and agree with most however this story makes no sense to me whatsoever. One would have to assume buyers are complete fools. If Robert lists his home at 1.4M why would a buyer think “oh he must want 1.7, so I wont make an offer” That defies any common sense. A buyer might think Oh wow it’s worth more than that, make an offer of 1.4 given that’s what is being asked, Robert accepts the offer and both parties walk away happy!

    Reply

    • Jeff
      August 18, 2020 @ 2:16 pm

      I felt exactly the same thing reading this ‘story’ Fred. If I was a buyer walking into a property where the vendor was doing the selling and I was interested, the very least I would do was make an offer and I’m sure many other potential buyers would do the same.

      Reply

    • Jenman Support
      August 19, 2020 @ 2:31 pm

      Dear Mr Steinkellner,

      Firstly, thank you for saying that you enjoy my articles and that you agree with most of them. That makes me feel very good as I try hard to get important information to consumers.

      Your remark, however, that my latest article “makes no sense” is quite correct – to an honest and intelligent man, which I assume applies to you.

      With agents, however, it’s not only hard to find any who are both intelligent and honest.

      I can assure you that what I have written is very true – annoyingly, frustratingly and heart-breakingly so.

      What happened was just what I wrote: The buyers who saw the home promoted at $1.4 million, assumed the sellers wanted $1.7 m, or at least $1.6m. So, let’s say that they are “looking up to $1.5m”, well, they are not even going to bother inspecting this home as they feel they will be wasting their time.

      Their minds are telling them the following formula: ‘Quoted price PLUS 20 per cent = Minimum acceptable price’. “Therefore, this home is out of our range.”

      I had a lengthy discussion with the owner and I agreed that this is exactly what happened to him.

      It reminds me of a father whose young son said to him: “The reason I lie to you Dad is because you don’t trust me.”

      Anyway, I hope this brief reply explains things a bit better.

      Thank you again for contacting us.

      Reply

  2. Ceridwen Dumergue
    August 18, 2020 @ 4:37 pm

    Great article Neil.
    It highlights how complicated everything becomes when most of the agents are dishonest, and buyers are then conditioned to expect this. How stupid it is that we live in a world where when we want to purchase or sell the biggest asset we will ever own in our lifetime, we have to play games and second guess one another. How stressful! It would be so much simpler and easier if we did just put a single acceptable price and view all offers. Everyone is on the same footing then. How does anyone possibly know this when entering into this world for the first time?

    Even more reason to ask you for help beforehand!

    Reply

  3. Anna Smith
    August 21, 2020 @ 10:58 am

    Hello Mr. Jenman,

    This article is disconcerting to say the least along with the following comments made by all agents, “We have people who will de-clutter, pack and store the excess furniture, cupboard contents etc. during the sale period”. When I asked the cost I was told it would be ‘minimal’. Of course, homes for sale should be presented clean & tidy. So far we’ve managed to buy and sell 17 homes without paying extra for that ‘service’ in the past.

    We would value your opinion.

    Reply

  4. Mike
    August 24, 2020 @ 1:53 pm

    Hi Neil, I have enjoyed your comments for some time. I have a story for you and would like your comment. Am I being too precious about this principle.
    We listed the house for $440K and agreed to the building and pest inspection. The building report suggested there was work to be done( 40 y o home) to the tune of approx $ 10.000. The bank valuation was also 10 000 less than the asking price.
    We agreed to drop the selling price to 430,000 and take the sale.
    All good until settlement when the agents commission was calculated on the original asking price of 440,000. I pointed out that the selling price was the reduced figure of 430,000 and the commission should have been calculated on this. The agency argued their case and told me this is the normal procedure and there would be no adjustments.
    Am I being too precious about the commission ethics?

    Reply

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