Help! No One Turned Up to My Auction!

Hi Scott,

I recently wrote to you about whether to sell my one-bedroom unit in a reputable bayside suburb and invest the money, with a view to buying a ‘home’ in 3-5 years. Unexpectedly, nobody turned up for the auction, not even a nosy neighbour. The advertising and conveyancing fees still need to be paid regardless of whether there’s a sale or not (a $4,500 lesson for me). This has hit my savings hard. You live and learn!

Barry

Hi Barry,

If no one turned up to your auction, you either hired a dud agent or you priced it too high (or probably both -- the two go hand in hand). So let’s cut to the guts of it: you’ve decided to sell your property. The job of your agent is to go out to the market and find you the best possible price the market is willing to pay. If you don’t want to accept that, that’s your problem not the agent’s.

Still, I wouldn’t pay him anything until your property is sold and settled. He gets paid when you do. That being said, I’d never ever agree to pay an additional fee for an agent’s advertising costs -- seriously, all you’re doing is paying to promote their agency. It should come out of their heavily negotiated commission. (Note to real estate agents: kindly send your hate mail via barefootinvestor.com)

Scott