Hi all
I’m in a situation at the moment where I’ve found an IP which matches all critera but the agent says the vendors aren’t interested in looking at offers before the auction.
I don’t really want to go to auction, so what options do I have? Does the agent need to take all offers to the vendors even though they’ve said they’re not interested in looking at any? I have the feeling that it’s the agent that’s pushing the auction not so much the vendors.
Any advice?Thanks in advance!
Why not drop a note in their letterbox (if they live there) or wherever they do live. It could well be that he wants the extra publicity for himself that the advertising for auction brings.
Wylie
Once you get a Section 32-Vendor Statement, the vendors details should be on it. In which case you would have the vendor’s details and could contact them directly. Maybe say you’ve been talking to the Agent and your not sure he’s passed on what you’ve said, and is it true they want to go to auction?
bypass the agent!!
Terryw
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Great idea guys…thanks. Hopefully I’ll be getting the section 32 this week and I’ll be trying what you’ve suggested.
How close is it to auction? If it is within a month then the seller usually has to go through with it no matter what now.
The best way to do this is to approach the agent and seller during an inspect and when they say no offers, make it clear to them you want to make a generous offer if the house is not passed in. Then when the top bidder wins and doesn’t have a high value, they will probably be offers, including yours. If it doesnt go at auction on the day make it clear you want to make an offer, if they don’t get a good offer from top bid they will come to you asking to make your best offer. Just be active, remember they will not throw away money they know they can get.
This is becoming extremely common because first home buyers simply do not have the setups to be able to buy at auction. For example if you have no equity, you need well over 10% to buy at an auction, because if the bank comes back and says you bid slightly more than what they consider to be a market value, they will require you to make up the difference with more deposit else they won’t loan you the money. For this reason first home buyers generally need 15% to 20% deposit to consider going to auction, unless tehy are extremely sure the bank will value at what they purchased at. Most don’t have this kind of money, only people with equity can do this. In other word most auctions are suited towards investers and people looking to upgrade their houses. Which means the best auctions to go to are best house in worst street areas. Investors won’t touch them, first home buyers can’t get in, and most people upgrading are upgrading to better areas. I constantly see zero bid auctions in this situation.
Thanks dacium,
The auction is mid next month so maybe the vendors are already committed. I will still take the suggestion of trying to deal with the vendors directly then try your suggestion on advising the agent that I’ll be making a generous offer if the house is not passed in.
Why do agents make things so difficult? I’m willing to pay a fair price….
Thanks again!Originally posted by dacium:How close is it to auction? If it is within a month then the seller usually has to go through with it no matter what now.
Never heard of this before? I myself bought a house just a couple of weeks ago 4 days prior to auction!!! What are you basing this comment on?
From my experience the reason they dont accept any offers is because they most likey have a fair deal of interest and are confident it will reach top dollar by going to auction. A month ago I attended an auction that was listed as $280+, I offered $320 and was told no offers, got to auction day and it went for $395k!!!!
The agent is now stalling with the section 32 which adds to the thought that he’s just trying to get the house to auction. Does anyone know how long the section 32s usually take to prepare? I understand that it would vary a lot, but is there an average time?
Thanks guys.
Originally posted by banked:The agent is now stalling with the section 32 which adds to the thought that he’s just trying to get the house to auction. Does anyone know how long the section 32s usually take to prepare? I understand that it would vary a lot, but is there an average time?
Thanks guys.
If the conveyancer is on the ball; about 3 days, but allow a week.
Have you approached the owner directly yet?
Cheers,
Marc.
[email protected]“we get sent lemons; it’s up to us to make lemonade”
Originally posted by blogs:Originally posted by dacium:How close is it to auction? If it is within a month then the seller usually has to go through with it no matter what now.
Never heard of this before? I myself bought a house just a couple of weeks ago 4 days prior to auction!!! What are you basing this comment on?
From my experience the reason they dont accept any offers is because they most likey have a fair deal of interest and are confident it will reach top dollar by going to auction. A month ago I attended an auction that was listed as $280+, I offered $320 and was told no offers, got to auction day and it went for $395k!!!!
This is a fine-able offense these days. If you feel like it; report the auctioneer and the agency to Neil Jenman (send him an email via his site) and he will deal with them. He loves this sort of stuff.
Cheers,
Marc.
[email protected]“we get sent lemons; it’s up to us to make lemonade”
This is interesting LA Aussie….
I noticed last night that the agent has increased the adverstised (+) price by $20,000. Seems to me that they’re just after some hype around the property, they’ve advertised it for a low price, got people interested and want a bidding war at auction. Surely this can’t be legal?
I was thinking about dropping a note in the vendors letter box after the open on the weekend. Any thoughts on what I should include? Initially I didn’t want to get the agent off side…but he’s not doing me any favors so…..Originally posted by banked:This is interesting LA Aussie….
I noticed last night that the agent has increased the adverstised (+) price by $20,000. Seems to me that they’re just after some hype around the property, they’ve advertised it for a low price, got people interested and want a bidding war at auction. Surely this can’t be legal?
I was thinking about dropping a note in the vendors letter box after the open on the weekend. Any thoughts on what I should include? Initially I didn’t want to get the agent off side…but he’s not doing me any favors so…..I’m not sure that re-advertising at a higher price is illegal. Prices that are achieved outside of 10% either way of the advertised price can attract a fine, but rarely do.
This whole scene is an old r/e agent trick; advertise the property low, get lots of interest as there are always more buyers in the lower end of the price range and if the property seems like it’s going cheap.
The agents go back to the Vendor and tell them “the market is telling us” that there is interest, but not at the price we would like (wonder why?). This hopefully encourages the Vendor to think of lowering the price and of course, the property sells at the Auction for a lower price.
The flip side is that the property sells for the price that the Vendor wants or higher, but in the mean time the agent has collected lots of names and numbers from the interested buyers at the lower end of the price range who never had a chance of buying the property and who have had their time (and possibly money) wasted.
You could say in your note that;
1. you are very interested in the property, but;
2. don’t like auctions and and/or can’t get there so won’t be there to bid, and;
3. my highest, and once only offer is $…………..
4. my contact details are…………..;
5. casually mention that the agent told you that he/she (the Vendor) wasn’t accepting offers prior to the auction. Were you aware??If you are trying to get the property for a low price this strategy won’t work, unless there has been no interest, but seeing how the price has been increased I would say there has; you may be better to go to the auction and hope the property gets passed in to you. Is this an I.P or PPoR? Totally different mentality for purchasing.
Don’t worry about getting the agent offside; his/her focus is commission and money and……money. You are the person with the cheque book.
Cheers,
Marc.
[email protected]“we get sent lemons; it’s up to us to make lemonade”
Originally posted by L.A Aussie:
This is a fine-able offense these days. If you feel like it; report the auctioneer and the agency to Neil Jenman (send him an email via his site) and he will deal with them. He loves this sort of stuff.Cheers,
Marc.How so? What is the acceptable + price? Its been asked here before and the general concenses was around 10% by memory? That would make it around the $310k mark-I knew this was to low though and was expecting it to go for between $330-350k. I dont think ANYONE expected it to go for $395k-there was nothing special about it, I think the buyer just had a brain freeze-I think he got ripped off because getting towards the $400k mark you are starting to look at victorian style cottages, not a 2 bed, one bath 20 year old town house as was the one he ended up buying….
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