In the process of possibly buying a property, and have been subjected to a few of the old 'we have another interested party' tricks, and the 'they are on their way to the office now to make an offer' – several weeks later, the property is not under contract.
This sort of stuff is to be expected, but what are some of the other tricks and cons that are commonly used by agents to pressure buyers?
Uh…anyone?
Getting you to sign a S66W and submitting that with the offer – that way the property goes unconditional by waiving the cooling-off period.
Oh, I've never heard of that one. Thanks for the tip!
uh…what's a S66W?!
It is important to remember that agents work for the owners not you. If you ask an agent about a price and the property is going to auction then they will tell you the highest figure that they think you would pay. Or they may low quote you to get more interest. Either way it is important that you do your due diligence carefully. You should never buy property unless you fully understand the values in a given area.
Also if you are buying for investment do not expect the agent to know what he property should rent for, The average agents sells homes and does not specialize in investment properties. So go to rental opens. If you are going to invest then you need to target your areas and get to know them let the back of your hand,
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
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There's 101 tricks/tactics that are used by agents – the problem is, it's not always possible to catch them out on it. All you can do is carry out your due diligence – work out how much you're willing to pay for the property and kick off negotiations.
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]
Jamie M wrote:There's 101 tricks/tactics that are used by agents – the problem is, it's not always possible to catch them out on it.Indeed – and it would be inadvisable to point it out to them if you did.
I've got an agent claiming to me that the reason his vendor wants such a high price (over market value), is that he 'sold' the property at that value previously, but the deal fell through.
Seems like a dubious and transparent ploy to get me to raise my offer…any way that I can check if a property has ever been under offer?
(and when, and at what price?)
Roberto, it's actually quite possible that the agent is being honest in this case. It's not uncommon for a high offer to be put forward that the owner accepts, only for the sale to fall through. From the owners perspective they think, it's obviously worth what they're asking,
True the agent may be trying to justify in your mind that the asking price is worth it due to a previous offer, but that's the Agents job. That said, the way you worded the above is that the vendor wants that price, and the agent is simply following instructions.
If it is a ploy, it's not a very good one anyway.
As mentioned by previous members, do your research, and offer what you feel it is worth. If the owner doesn't budge, move on.
Maybe the original buyer got the bank valuation and realised he was paying to much. There is no real way of checking if a offer has been submitted that I know about. Best thing to do is stick to your original offer if you think its the market value and maybe offer shorter contract terms if they want it sold in a hurry might help sweeten the deal.
Tony Fleming | Triumphant Property Group
http://www.triumphantpropertygroup.com.au
Email MeNSW Buyer's Agent specialising in Western Sydney-Blue Mountains-Orange-Albury
On the other hand all agents/sales representatives are bound by ACCC legislation on a national level and by state legislation/codes of conduct etc.
Ryan_vs wrote:Roberto, it's actually quite possible that the agent is being honest in this case. It's not uncommon for a high offer to be put forward that the owner accepts, only for the sale to fall through. From the owners perspective they think, it's obviously worth what they're asking,True the agent may be trying to justify in your mind that the asking price is worth it due to a previous offer, but that's the Agents job. That said, the way you worded the above is that the vendor wants that price, and the agent is simply following instructions.
If it is a ploy, it's not a very good one anyway.
As mentioned by previous members, do your research, and offer what you feel it is worth. If the owner doesn't budge, move on.
That's fine – they can give you any number of reasons why they feel the listing price is justified. If you don't think the property is worth what they believe it is – than just move onto the next one. No point in wasting time on a dud deal.
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]
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