HOW TO FIRE BAD AGENTS
by Neil Jenman
Craig is a smart fellow. But he can’t believe what’s happened while trying to sell his gorgeous home in a leafy Melbourne suburb.
His main gripe is the way his agent is handling the sale and the shoddy way he is being treated.
Before Craig signed-up, the agent was charming. Nothing was too much trouble. As for the home, the agent was full of praise. “One of the most beautiful in the area,” the agent said, “I am sure you’ll get at least $1.2 million.”
Stupidly – and Craig is kicking himself – he paid five thousand dollars in marketing costs and, far worse, agreed to public auction, the worst way to sell a home.
Craig should have known better. He should have known that the advertising money is to promote the agent not his property. He should have known that agents already have buyers on their books; if not, they can go searching for buyers without the lazy method of advertising.
Finally, Craig should have known that auctions almost never get the highest price.
Still, the agent convinced Craig that $1.2 million “wouldn’t be a problem”. So, he and his wife, Carol, signed-up and paid the advertising money.
And then everything changed.
“It’s like he’s two different people,” said Carol. “The agent who signed us up is so different to the agent now.”
Gone is praise of their home. It’s replaced by constant negative criticism. When they express disappointment, the agent says: “This is what the market is telling us.”
The agent is no longer talking about $1.2 million. He’s saying the “market feedback is around a million dollars”.
Worse, he is advertising the property with a “price guide” of $900,000, despite Craig saying they must get $1.2 million.
As for advertising the property at $900,000, the agent is giving the excuse all agents use to justify false low quotes: “It’ll attract more buyers.”
The agent is right. If a home worth $1.2 million is advertised for $900,000, it will attract more buyers.
But at what price? At $900,000, of course.
Come the auction there might be many buyers but all hoping to buy at the agent’s price guide of $900,000. When the bidding stops around $900,000, the agent will pressure Craig and his wife to sell by saying, “This is what the market is saying.”
But the agent has been looking in the wrong market!!
If you want to sell your home for $1.2 million, the first thing you need is buyers who can afford to pay $1.2 million. It’s so basic. It’s common sense.
Sellers should never allow agents to under-quote the price of their homes, no matter what excuses they are given to justify such deceit.
Now, as the auction approaches next Saturday, Craig and his wife are full of anger and fear. Anger at how the agent has changed and fear their home will not sell near their price.
Craig wishes he could sack the agent. But he is “signed-up” for 90 days.
Consider the madness of what’s happening here.
The agent deliberately misled Craig and his wife into signing-up with him. Once they signed up, the agent acted like an abusive partner when the wedding was over.
If the agent was her husband, Carol would kick him out. If the agent was an employee in their business, he’d be fired.
But because he’s an agent, they are stuck with him. Yes, this is madness.
Sellers, you MUST HAVE THE RIGHT TO FIRE ANY AGENTS.
Always insist on a ‘right to terminate’ clause in any agent’s agreement.
Contact your lawyers and ask them to design words for you. Or do it yourself. Write on the agreement: “The sellers have the right to cancel this agreement without penalty or further liability if the agent has not met the sellers’ expectations”.
If the agents won’t agree to such a clause, do not hire them.
Remember, it’s your home, the agent is your employee. If your employee does not meet your expectations, you must have the right to fire the employee.
Your home is too valuable to be in the hands of the wrong agent.
And, besides, life is too short to make the greatest mistake most people make in their lives – spending too much time with the wrong people.
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FOOTNOTE: At Jenman Support, when we help you find the right agent, we insist that the agent agrees to 7 POINTS before you sign-up.
With our support, you cannot get stuck with the wrong agent.
If you have already signed-up with the wrong agent, we may be able to help you. Call us urgently on 1800 1800 18.
To speak with the Jenman Support team, please call 1800 1800 18. Thank you.
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PLEASE NOTE: Our focus is upon helping consumers. Abuse from agents on our web site or Facebook page will be deleted, ignored or well publicised – it depends on our mood.
But one thing will never vary: We will never stop doing what we love most – helping polite and honest consumers get the best deal possible in real estate. And, of course, if any agents are serious about taking care of consumers, we’ll help you too. Thank you.
March 16, 2020 @ 8:52 am
Sounds like great common sense advice to me.
I believe the agreement vendors sign is the agreement designed for agents NOT the vendor.
By placing a clause in an agreement like the one Mr Jenman suggests puts responsibilty back on the agent to get the best price.
Also 90 days is too long. 60 days would seem to me best.
Seems like a simple way for vendors to protect themselves.
March 16, 2020 @ 10:24 am
I had a young “agent” approach me as I was thinking about selling my property but there was no urgency or “must sell”, he couldn’t have been more humble or polite, he was using me for practice but I didn’t know that at first, so I gave him 90 days at no cost to me, the only charge was to be his commission 3%. Things started to change after I signed, I did not agree to an ongoing contract, he put in his “online ad “must sell” I objected but he ignored my objection, he insisted that I should not be present at the weekly open house times, I asked why, he said “because they might ask questions I don’t want you to answer” I don’t think any of the people that he invited into my house were “real buyers” they might have been his mates from the pub who had nothing better to do, he did not mention any “offers”! This agent’s manner became annoying and dismissive, at the end of the 90 days I phoned the office and asked to have their sign removed as I did not wish to continue to be responsible for it, the agent became irate he claimed I owed him money etc. I sent a formal registered letter to the manager of the office telling to remove all claims that they represented my property, they did but their employee, the young agent refused to remove his false claim from FACEBOOK, I asked “admin” of Facebook many times to remove his claim but they claimed many excuses, one was that this is the only way I could continue to use Facebook for free, I don’t care if I never use Facebook again, they are frauds! The “stunt” is to collect all the names of people that make inquiries and then claim they are his “clients” so he try to charge me commission for nothing, my local police agreed and phoned this agent and put the matter to him, I was in the room during the conversation, the officer was polite and “eventually” was able to convince the agent to remove the misleading claim, I notice now the young agent is now referred to as a “sales consultant”!
March 16, 2020 @ 5:05 pm
Thankyou Neil Jenman for your informative article. I have never read such a clearly stated and informative way of handling agents before.
I have been stuck with agents in the past that slackened off once the go-ahead contract was signed and I had to put up with them, ie too slow advertising my house with the sign out the front, becoming bossy and only turning up twice a week if I was lucky with a potential buyer.
Now I am armed with this knowledge even though I am now in my seventies I feel relieved. It’s much appreciated, thankyou, thankyou!
March 19, 2020 @ 1:11 am
Agents only care about agents, if they are due a payment on their Mercedes they would happily talk you in reducing the property price to make the sale and fill their pockets with your money. When will we wake up and realise in the age of internet they add no value.