To touch on Catalysts’ point….make sure you are dealing with the agent who has the listing advertised. If there are 5 agents in the firm, one lists it and you go to your preferred contact in that firm they may not have listed it therefore they do not have the relationship or trust with the vendor to get an offer through at a lower price. I know this may get the agents upset but if this has been the structure in the past that has caused such an outcome then you have good reasons to go to a different agent in that firm.
What town are you buying in may i ask? I’m intrigued about such incompetence
Ha ha… I am looking in Proserpine QLD, 30min to Airlie Beach and 1 1/2hr to Mackay
Also collinsville (mining community inland of Bowen)Intrigue wrote:Ha ha… I am looking in Proserpine QLD, 30min to Airlie Beach and 1 1/2hr to Mackay
Also collinsville (mining community inland of Bowen)OK, that is quite surprising because when I was up there in December 2010 the market was quite depressed. I would have though agents would be calling you back every day!
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Andrew_A wrote:Intrigue,It does seem strange, however it is true. Once you work with a situation long enough you begin to view it as normal and are not surprised any more. Generally the industry is heavily geared towards the new hunt new kill mindset and there are very few farmers out there nurturing longer term relationships where long term is more than a few days or weeks
Hit the nail on the head…
….Generalizing dont give the average real estate agent too much credit……. from a sales career persepective I rank them one above the car saleperson…… lol
The exact same thing has happened to me twice, very frustrating to have your offer knocked back only to find a lower or equal one was accepted. In one instance the agent rang me 30 mins after my offer was made to tell me,so sorry, but the house was sold. I asked him how much and it was equal to my offer. I said he should of run a dutch auction over the phone to get the best price for his client, as i for one would have exceeded my offer a bit more, and he replied in genuine horror that doing so would be unethical. You win some you lose some i guess!
Strange isnt it.
I thought in QLD there was a multiple buyer process. I.e. if there are two people interested in a property then each is offered the opportunity to submit their best offer.. highest price and or best condition wins.
I would have thought that as an agent if someone offers $255k but I know someone who has already submitted and offer of $260k and had it refused. I would have thought the most ethical and fair way to deal with the situation would to be let both parties (and any other interest for that matter) submit their best offer by set time. In this situation the offer of $255k may be increased my offer of $260k may have been increased and the seller may have received a greater price for the property (the best offer would have won, whether that have been mine or theirs).
I know many agents arent familiar or perhaps dont like such a situation cause its a little more complex that a standard yes or no to offer but I thought it was the legal and ethical way?
Agents in Qld (and everywhere I would assume) are governed by law to work in the best interests of the vendor. By not accepting or dealing with multiple offers in the best way for the vendor is illegal and the vendor can in fact sue the agent for monies perceived to be lost because of the agents negligence. Also the PAMD act states that all activity must be reported to the vendor unless the vendor has instructed otherwise. It is then the agents responsibility to receive instructions from the vendor and act according to the vendors instructions as long as it is in line with the PAMD act.
Why do agents continue to do their job in a counter-productive way? If you do the best for your vendor you will in turn get more vendors am i right? And if you have more vendors you have more properties to market so as an agent you have more exposure and will generate a higher amount of buyers calling you!
Funny how a lot of agents don’t do their job in the best interests of the vendor or themselves.
An agent's job is to clear the stock. They do not get their commission till they do. A difference in sale of $5k will earn the agency only 2% of $5k which is $100, and the actual person that made the sale sees only a portion of that $100. They are not going to bust a gut to be fair to everyone for what…. $30 or something. They are going to try and sell to the first person that offers. If the vendor refuses, they have to keep trying to sell. They will then try and sell quickly to the second person that offers. Etc.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
i understand an agents underlying motive…but legally an agents job is to do the best by their vendor.
colinnewland wrote:Every agent is under a legal obligation to submit EVERY offer so do not take what the agents says "too low and offer". Write it up and submit a modest deposit ($1).
Sit down WITH the seller (not the agent) and find out what their selling motivation is; do they need CASH TODAY?
I would include a special clause to the effect that the offer is open until a set date and time 'UNLESS you have another offer on a different property accepted prior to them accepting'. This allows you to make multipul offers all over the place and only legally obliged to completed the offer that IS accepted. This allows you to get on with closing on a deal and not waste further time on poor agents or laging sellers.
I would also send a copy of the offer direct to the seller (and advise the agent of this as well), just to make sure that they are actually submitting your offer.
I would not carry a bleeding heart for too long either, just cast your net as wide as possible.
Cheers.Good advise about submitting the deposit, however I would go a bit further and do a 5% cheque with the condtions to accept within 48 hours.
And remember to vendor's may have nutted out a deal, like renting the house back from the person who brought it etc. So the deal of 255 plud not have to move out of his house for a year might be more appealing than your $260 offer.Hi Intrigue,
You have been given some great advice and also followed some tried and tested tactics to uncover these opportunities, Well Done! These properties have all sold around the price YOU thought they would… so there is only one thing you need to work on and that simply is your communication with the agent and your timing!
No smoke and mirrors here, my advice would be to play dumb like a newbie! Firstly don't be so quick to make low ball offers, although we all know here they were around the final mark. Also when you do make the offer, make the Agent fall in 'Love' with your approach… ie. novice to the game, tight budget, trying to get off the ground etc, but especially engage the agent to make it a reality for you. Generally MOST agents in this tuff market, want to focus on one qualified lead… because their affraid of loosing the sale all together! So play nice, don't reveal your hand, and let the agent believe when you make your offer, its down to general affordability!!
You never know, your approach previously might have sounded great to you… and to us!! but to the agent, no-one likes been told that the price THEY negotiated with the vendor was unrealistic and unachieveable to begin with and watch.. coz it's gonna drop and when it does, ring me! (im sure you didn't put it that way, but that's probably how they take it!)
Anyway, best wishes and i look forward to hearing you close down these offers!!
regards,
Dave
You can write up your offer in the following term: …this offer is open until date/time OR a shorter period should I recieve acceptance for any other offer.
This allows you to submit several offers at the same time with the confidence that you will only be obliged to settle on the first offer accepted. Make sure that you also include the Date AND Time of acceptance in your written offer.
Just to make sure, you also withdraw all other offers via email before you recieve any other acptenaces: you do this at the same instance you get your first (and now only) acceptenace.
It also puts a 'little' pressure on the seller to make a decision.
Never be put off by any agent suggesting or refucing to immediately submit a written offer to the seller. They may 'suggest' that they will not be able to submit the offer until after normal work hours to the seller….thats BS in todays mobile phone/TXT/email world. If the agent does dont have immediate access to a seller I would be surprised.
You may also like to confirm with the agent as to how and when he will communicate with the seller. You may suggest that he phone the seller in your presence.colinnewland wrote:You can write up your offer in the following term: …this offer is open until date/time OR a shorter period should I recieve acceptance for any other offer.
This allows you to submit several offers at the same time with the confidence that you will only be obliged to settle on the first offer accepted. Make sure that you also include the Date AND Time of acceptance in your written offer.
Just to make sure, you also withdraw all other offers via email before you recieve any other acptenaces: you do this at the same instance you get your first (and now only) acceptenace.
It also puts a 'little' pressure on the seller to make a decision.
Never be put off by any agent suggesting or refucing to immediately submit a written offer to the seller. They may 'suggest' that they will not be able to submit the offer until after normal work hours to the seller….thats BS in todays mobile phone/TXT/email world. If the agent does dont have immediate access to a seller I would be surprised.
You may also like to confirm with the agent as to how and when he will communicate with the seller. You may suggest that he phone the seller in your presence.Hi Colin,
Just looking at your above quote. Have you ever worked in real estate to make this judgement? <moderator: delete language>
1) It usualy takes more then one person to make a descion on what they will or not accept.
2) If you put pressure on the seller they will get defensive and they wont want to communicate with the agent
3) people are busy at work and a smart agent will always present the buyers offer in writing in person. Seeing a offer infront of them has a higher emitional value.
4) If a buyer says he or she is putting offers on other properties and needs a time back you will find that most agents will think that you are just looking for a bargin and really not 100% commited to buying this home.
5) if a buyer asked me to call the vendor infront of them i would say no becasue i dont submit offers over the phone and most important i handle all offers by person.Last or not least if a buyer does not submit a offer in writing or on a contract of sale then there is no offer to begin with.
Cheers
Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
Hi Intrigue,
Hope you are on the right pathto getting your property.
Mate just had a look at what you have been saying very intresting. I used to be a real estate agent but i only did it to learn not as a career. The moral of this is that every time you buy a property you are either going to pay to much or you got it for a bargin. Thats not important i think whats important is what have you learned from this?
EG: Im 27 and bought my first IP on my 21st B day. I paid 185k for a home that was advertised 190k after i got it my freinds and family said oh you paid to much. 3 years later i sold it for 320k. i also bought a second IP later on that year. It was advertised for 260 to 280. So i paid 285. Why? I looked at the property from a long term view great location, full renovated, 900 sqaure yard etc.
3 years later its worth 450k valued from the bank not an agent. What did i learn this time? some thing different again.If you really want to get a property just get one and learn thats all you can do. The longer you wait the harder it becomes and if you never by one you will never learn.
If you need a hand on a property that you are getting please email me or private message you can i help you through the process.Cheers
JohannJpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
If you wish to make an offer, and you want that offer taken seriously, consider the following:
- Make the offer in writing
- Make any conditions clear in the written offer
- Ensure the conditions are not onerous
- Attach a cheque for the deposit amount
- Apply a sunset to the offer
And good luck with the search
….
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