Currently signed on with a real estate agent after a recommendation from a friend.
Had the bank’s internal valuer visit the house at 9am to take photos and do his thing. He then left and the RE agent arrived to talk is through the process and the price to expect. Our research suggested 950k - 1.1. RE agent said we should price set low price guide to get people interested at 790k. Claimed it was due to ‘psychology’. Saying we could possibly get 850k.
We pushed back saying that was not what we were expecting, and with our hopes price in mind, no one is going to pay 200k + over the price guide without wondering what was wrong with the house to start with.
Then, the bank emailed us with their formal house valuation. They valued it at 1.05. The agent seemed to be way off re the price.
The contract showed his commission on the price range we wanted and for the 90k difference in sale price for us, the commission price changed by very little. Seems there’s not much incentive for him to get the best price for us.
He showed us a diagram of how best offers apparently come in the first week and get lower. Seems this would correlate with his pay per day over time. The longer we make him wait to get the best price, the less he is paid on a per day basis for our sale.
Should we just be more assertive with the agent or try to get out of the exclusivity contract with him?
Do real estate agents work for themselves instead of the vendor?