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    Default Do you have to go through the RE agent to buy a house if it is now off the market?

    Situation: You went to an open house and made an offer on a house but it was taken off the market due to not getting the price they were after.

    Do you legally now have to go through the real estate company that they used to buy the house still or can you approach the owners privately and have a private sale whereby they don't have to pay fees?

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    Quote Originally Posted by Little Ted View Post
    Situation: You went to an open house and made an offer on a house but it was taken off the market due to not getting the price they were after.

    Do you legally now have to go through the real estate company that they used to buy the house still or can you approach the owners privately and have a private sale whereby they don't have to pay fees?
    No you can go through a conveyancer much cheaper

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    Little Ted  (12-07-2015)

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    We didn't use a real estate agent. The place we bought was taken off the market about a year before we bought it. Just approached the owner and discussed price etc. our solicitors drew up the paper work for us.

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    Little Ted  (12-07-2015)

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    Quote Originally Posted by HappyBovine View Post
    It would probably vary state by state, but when we sold a house in 2007, there was a downturn in the market where we were. One failed auction and two months later the house was not sold. We ended up swapping real estate agents. The original agents got nasty and pointed out a standard inclusion in their contract with us, stating that if we sold the house to anyone who they had introduced to the house within x number of months, then we would still have to pay them a commission. Obviously this all hinges on whether or not the original real estate agent finds out and forces the issue. (In our case they were going to as they were pretty p!ssed we swapped agencies).

    By all means approach the owners and see if you can work something out, but be aware they may be subject to a similar clause.
    Does anyone know how many months it is and if PRD has it? We're thinking of approaching the owners by mail - or should we do it through solicitors or in person? We have a copy of the contract so we have their solicitor's details.
    Last edited by Little Ted; 12-07-2015 at 13:14.

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    Yes you can approach the owner directly , but there is a standard clause in the contract for sale which states " the buyer acknowledges they were not introduced to the home by a real estate agent" which you would sign if it's true but as you technically were introduced last year by the agent ( and they have all your details ) the owner may be liable to pay the agent some form of remuneration

    The reason this clause was added by the solicitors is that in the 1970,s buyers used to say to the home owners, wait until your agreement expires and we will buy it privately so you don't need to pay the agent so when the owner signs our agreements it states that if we introduce a buyer who ends up buying the home we can still charge them a fee

    If it were me I would still approach the owners , it's up to them to work out legally if they want to negotiate with agent

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    Little Ted  (12-07-2015)

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    Quote Originally Posted by Little Ted View Post
    Does anyone know how many months it is and if PRD has it? We're thinking of approaching the owners by mail - or should we do it through solicitors or in person? We have a copy of the contract so we have their solicitor's details.
    There is no time limit and it's in every contract in NSW - go knock on their door and approach them that way - or call them if you can find a number - if they want to sell and you can afford then just worry about the agent then!

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    Little Ted  (12-07-2015)

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    Quote Originally Posted by Elijahs Mum View Post
    Yes you can approach the owner directly , but there is a standard clause in the contract for sale which states " the buyer acknowledges they were not introduced to the home by a real estate agent" which you would sign if it's true but as you technically were introduced last year by the agent ( and they have all your details ) the owner may be liable to pay the agent some form of remuneration

    The reason this clause was added by the solicitors is that in the 1970,s buyers used to say to the home owners, wait until your agreement expires and we will buy it privately so you don't need to pay the agent so when the owner signs our agreements it states that if we introduce a buyer who ends up buying the home we can still charge them a fee

    If it were me I would still approach the owners , it's up to them to work out legally if they want to negotiate with agent

    Oh pooh!
    We were hoping that by the owner not having to pay a fee that we could negotiate better on price. Do you happen to know if there is a time frame placed on the clause at all?

    Edit: Thank you - you answered my question whilst I was typing : )

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    No time frame and they may not have to pay full fee, they can negotiate a lower fee as even though the agent showed you through they didn't put the sale together

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    Little Ted  (12-07-2015)

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    Quote Originally Posted by Elijahs Mum View Post
    There is no time limit and it's in every contract in NSW - go knock on their door and approach them that way - or call them if you can find a number - if they want to sell and you can afford then just worry about the agent then!


    This particular house has always had the same price on it when it was listed. It was on the market for around 8 months, went to auction early on and didn't sell. we made an offer $50k under asking price, then offered $45k under asking price as we saved and that is the best we can do at the moment until we save more. We agreed between us that we wouldn't offer any more than another 10k as that is how much we think it could be worth at the most.

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    Quote Originally Posted by Elijahs Mum View Post
    No time frame and they may not have to pay full fee, they can negotiate a lower fee as even though the agent showed you through they didn't put the sale together
    I think we guestimated that their fee would be around the $18k mark normally on that sale price with the company they were with. We only attended an open house and there were no extra showings arranged.


 

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