Agent playing silly games (show down in 1 hour)

[EstatePreneur]

The property is listed at $279k. I placed my offer $256k on contract for the property yesterday.

I contacted the REA this afternoon, he said he's got 5 offers including mine, and mine is sitting in the 2nd lowest offer. I suspect the REA might be playing games with me over the phone. He said the other 2 offers are much higher than mine.

So I upped my offer to $281k. Honestly, I was pretty nervous hearing my offer was sitting in the 2nd from the lowest offer. I was afraid I would miss out on this property considering it's a very good property.

But what I'm really concern here is:
1. Would you think the REA was fooling around by 'lying' to me that my offer is way too low? Considering we're not allowed to see the contract of the other prospective buyers (or can we?), so I thought the REA might be lying to me, but also he might not.

2. I've done research a property just 2 houses away from this one, was just sold for $345,500, the buyer just settled in 3 days ago. So now I'm concern I might be buying this property at way too high price. Would I be able to cancel the contract later telling the REA my bank doesn't approve my loan application?

By the way, my highest offer was placed verbally (not on contract) just now over the phone. And the conditions I put on the contract was good according to the REA.

The REA is gonna get back to me within the next one hour or so.
Somersoftians, please helppp. I feel I'm in tough & weird situation atm.

If the REA contact me later saying, my offer has been accepted, then I'll be very2 happy. If the REA said, the vendor has accepted other offer, would you think I still get to have the last shot from the REA? i.e. He might ask me for the last time whether I'd like to increase my offer again or not, otherwise the vendor will just accept the other offer (highest offer).

What should I do? What should I say? What should tell the REA if he does ask me to up my offer?

 

[Harris]

Organise a valuation for the prop as soon as the vendor has signed the offer and have the valuation emailed/ faxed to you before the cooling off period is over.

I am interested in finding out how you jumped from $259 to $281 all of a sudden.

I dont think that the REA is playing games. He is trying to do his job by getting the highest offer price for the property with shortest possible settlement time for the vendor (whose interests he is representing).

Harris

 

[EstatePreneur]

Organise a valuation for the prop as soon as the vendor has signed the offer and have the valuation emailed/ faxed to you before the cooling off period is over.

I am interested in finding out how you jumped from $259 to $281 all of a sudden.

I dont think that the REA is playing games. He is trying to do his job by getting the highest offer price for the property with shortest possible settlement time for the vendor (whose interests he is representing).

Harris

Harris, so during the cooling off period, we're allowed to withdraw from purchasing the property? Say if I get a property valuer to value the property and it turns out the value is less than $281k, maybe it's only worth $265k.

Hmm, I'll keep this thread updated, it's almost 1 hour gone now. Still waiting for the REA call.

 

[Les]

G'day Estatepreneur,

Anxious times, eh? Welcome to our world. Let me have a quick look as a non-biased outsider:-

1. Would you think the REA was fooling around by 'lying' to me that my offer is way too low?

I've seen it happen where a REA says "someone else has offered above you" and it turned out to be BS. But where FOUR others are higher than you, I would think this might be near the truth, and, if I wanted the property, I would have considered raising my bid too.

2. I've done research a property just 2 houses away from this one, was just sold for $345,500, the buyer just settled in 3 days ago. So now I'm concern I might be buying this property at way too high price. Would I be able to cancel the contract later telling the REA my bank doesn't approve my loan application?

You must know something I don't - if a neighbouring property sold for $345k, why would $281k be "over-priced"? Of course, it might be a better property (but I don't know that - what are YOUR thoughts, EP?)

If the REA contact me later saying, my offer has been accepted, then I'll be very2 happy. If the REA said, the vendor has accepted other offer, would you think I still get to have the last shot from the REA? i.e. He might ask me for the last time whether I'd like to increase my offer again or not, otherwise the vendor will just accept the other offer (highest offer).

This is where the rubber meets the road, EP. And, right here, it's ALL UP TO YOU !!! We haven't seen the place, and we don't know the RE.

But, also be prepared for the RE to say "Sorry, you didn't make it" WITHOUT giving you the option of lifting your bid further. And if THIS happens, I'd make a special effort to befriend this agent to find future deals. Sounds like a gem of an agent.

And, no, I wouldn't expect to "have another shot at an offer" normally. If the RE starts playing "Dutch auction", I'm outta there. THIS is why I say "if he DOESN'T do this, make him a friend".

Regards, and good luck with it,

 

[Les]

G'day EP,

Harris, so during the cooling off period, we're allowed to withdraw from purchasing the property?

True, but it's not "free" - I believe it will cost you 0.25% of the offered/accepted price in Qld - thus it will cost you around $700.

Of course, this is if you invoke "cooling off" - you may also be able to pull out via a finance clause (but your lenders would have to be QUICK to have it all done within 5 days of the cooling off period).

Regards,

 

[GoAnna!]

If the realestate agent is operating form his office tonight (rather than from home etc), AND you know what price you are prepared to pay and its higher than your cuurent offer then i would drive to that office now and be sitting in front of him as he negotiates with the other buyers. But only if you are very clear in your mind about what value you place on the property.

Are you buying subject to finance? What conditions are imposed?

 

[EstatePreneur]

G'day Estatepreneur,

Anxious times, eh? Welcome to our world. Let me have a quick look as a non-biased outsider:-

You must know something I don't - if a neighbouring property sold for $345k, why would $281k be "over-priced"? Of course, it might be a better property (but I don't know that - what are YOUR thoughts, EP?)

And, no, I wouldn't expect to "have another shot at an offer" normally. If the RE starts playing "Dutch auction", I'm outta there. THIS is why I say "if he DOESN'T do this, make him a friend".

Regards, and good luck with it,

Yes Les, very very anxious indeed, hmm I can hardly breathe now.
My bad, that's wrong typing. The property 2 houses next door was sold for $245,500, not $345,500, sorry bout that.
It's indeed a different property, different look, and this one looks newer (seems like the owner just renovated it 5 years ago).
Ah dutch auction? I think I've heard it somewhere on ebay (I shop quite often on ebay )

Thanks very much for your advice Les.

 

[EstatePreneur]

If the realestate agent is operating form his office tonight (rather than from home etc), AND you know what price you are prepared to pay and its higher than your cuurent offer then i would drive to that office now and be sitting in front of him as he negotiates with the other buyers. But only if you are very clear in your mind about what value you place on the property.

Are you buying subject to finance? What conditions are imposed?

I think he was on his way back from seeing the owner.
Yes, I'm buying subject to finance, and pest/building inspection.



God I hate to say this!
I just got a phone call from the REA...and...the vendor has accepted the other higher offerrrrr Grrrrrrr, I'm bloody upset now.

This will be one of those hardest times in my life (sorry to pour this out here) and the second time I missed out on a very good property.

 

[Les]

G'day EP,

I just got a phone call from the REA...and...the vendor has accepted the other higher offerrrrr Grrrrrrr, I'm bloody upset now.

Sorry you missed out - but wait.... Who's to say that the buyer has their finance together? Who's to say that they won't "pull the plug" during cooling off?

You have a choice now to be recognised as a "backup contract" (especially as you seem quite upset about missing out on this one).

The choice is yours. Or, you can choose to put it behind you and move on, rather than waiting for events to happen (or not), and just say "Next!!" Once again, the ball is in your court. Good luck with the struggle,

Regards,

 

[phil]

This will be one of those hardest times in my life (sorry to pour this out here) and the second time I missed out on a very good property.

I'm sorry that you missed out on that property. It has happened to me also and I know how you feel. As Les just mentioned, the game is not over yet, and things still might change for the better. If not, there will always be another property just around the corner.

Chin up mate,
Phil.

 

[EstatePreneur]

G'day EP,

Sorry you missed out - but wait.... Who's to say that the buyer has their finance together? Who's to say that they won't "pull the plug" during cooling off?

You have a choice now to be recognised as a "backup contract" (especially as you seem quite upset about missing out on this one).

The choice is yours. Or, you can choose to put it behind you and move on, rather than waiting for events to happen (or not), and just say "Next!!" Once again, the ball is in your court. Good luck with the struggle,

Regards,

Les, thank you for your encouragement. And thank you for cheering me up too.

Hmm, there's another property in the busy road area that I'm also looking at and currently negotiating with the vendor.
I think I'd better move on with this one, rather than to wait and hope the buyer withdraw from the contract during their cooling off period.

But just in case, just in case...Les, how long would you think I'd have to wait until that cooling off period? 2 weeks, 3 weeks or months?

This other property on busy road has had 2 other serious offers apart from mine, so I must act quickly.

Hmm, as for that property I just missed out, it'll take a while before I can cool myself down and keep hoping I'll find a better one

 

[EstatePreneur]

I'm sorry that you missed out on that property. It has happened to me also and I know how you feel. As Les just mentioned, the game is not over yet, and things still might change for the better. If not, there will always be another property just around the corner.

Chin up mate,
Phil.

Now I feel like I'm surrounded by a family and great mates.
Again, I really appreciate that encouragement Phil.

I still got no idea how I can go to bed and sleep easily tonight.
But I'll get over it somehow.

 

[Les]

G'day EP,

Note that I am Assuming you are buying in Qld (but this may not be so).

The "cooling off" period in Bne (Qld) is 5 days - in fact, I think the first day is the day the offer is accepted - so 4 more days. But then, the current buyer might also have a finance clause and/or building/pest inspection clause - and these are not set in concrete, but are "usually" 10 to 14 days.

So, based on that, you won't be likely to have to wait more than 2 weeks at worst. But, I am glad to hear you have "other ideas" anyway. Who wants to play "hurry up and wait" anyway? Have a go at this other one. You might score this one, and at a better rate too. Who knows.....

But, if you DID want to become a "backup contract" to tonight's property, I think it will need a whole new contract (thus, you can choose to offer a lower price - or higher - than what you did before). To discuss a "backup", call the RE agent who was dealing with you, and discuss it with them.

Who knows, maybe they already know that the sale is concluded, and can steer you to another deal anyway. (Often, RE agents get to discuss just how much money a buyer has, do they have pre-approvals, etc. - so a "backup" may not be worth the effort). But they are your first port of call if you wanted to go that way.

Word of warning, DON'T have two signed contracts out at the same time unless you are REALLY SURE what you are doing. I'd say that if you want to try this other property, then try it first - you can always discuss the "possibility" of a backup contract for tonight's property with the RE agent, without going to contract. Then, if this new one doesn't work out, and tonight's falls through, you are still "in the picture". Just be careful to NOT disclose to the RE agent about how upset you were to miss tonight's property (they may use that against you if you did become "backup" )

Once again, good luck,

Regards,

 

[Les]

I still got no idea how I can go to bed and sleep easily tonight

WHat?? No Scotch in the cupboard?

Regards,

 

[EstatePreneur]

Word of warning, DON'T have two signed contracts out at the same time unless you are REALLY SURE what you are doing. I'd say that if you want to try this other property, then try it first - you can always discuss the "possibility" of a backup contract for tonight's property with the RE agent, without going to contract. Then, if this new one doesn't work out, and tonight's falls through, you are still "in the picture". Just be careful to NOT disclose to the RE agent about how upset you were to miss tonight's property (they may use that against you if you did become "backup" )
Regards,

Doh! I did say that I was pretty disappointed when I spoke with the REA over the phone. Hmm, but that backup contract thing, I'll take that as my plan B if I miss out on this other property, which I hope I won't.

WHat?? No Scotch in the cupboard?
Regards,

Sorry Les, is that some kind of a beer?
If it is, I'd say "I only got a milk in the fridge and I don't drink beer"

 

[jingo]

Hi Estatepreneur,

Sounds like you have had a rough day! Keep going, and don't give up!

I find it useful to record recent sales. I do so on an excel spread sheet. I have one set up that records the following:

Address, Date of Sale, Sale Price, Length of time on the Market, Description of the Property, Details of the Agent, Land Size. Other Notes/observations.

I update this everytime a property of a similar type to the one I am interested in sells. I find this helps to give me a clearer idea of the current prices being achieved for property in the area. Often I gain the details from the property results which are published in Victorian Newspapers on Sunday and Monday. (Herald Sun and The Age). I will also ring up agents if the sale prices are undisclosed.

I am currently negotiating a purchase at the moment. I have increased my offer this evening.

I hope this helps a little.

Keep at it, and remember there will always be another opportunity!

Regards Jason.

 

[ledd]

Of course, I don't know what the property went for but perhaps there were other buyers willing to pay more than what the property was realistically worth?

Sorry to hear you missed out. I'm sure other properties will present themselves before too long.

 

[lizzie]

sorry to hear you missed out - when you've been in this game a while, you'll miss out on a lot of properties, especially if you're bidding in the range of first home owners.

home purchasers are often willing to pay more than an investor, 'cause they're not looking at returns and cg etc.

but - looking on the bright side. when that waaaay better property, in a better locations, with a better return comes up next week you'll have the funds free to leap in and snatch it up. whereas, if you'd bought, you could be sitting their next week going - i wish i wish ...

 

[Kevin Hockey]

I contacted the REA this afternoon, he said he's got 5 offers including mine, and mine is sitting in the 2nd lowest offer. I suspect the REA might be playing games with me over the phone. He said the other 2 offers are much higher than mine.

By the way, my highest offer was placed verbally (not on contract) just now over the phone. And the conditions I put on the contract was good according to the REA.

I would suggest this agent hasn't followed the correct process here as they shouldn't have disclosed where your offer sat in relation to the others. They should only let you know there is other offers and you are likely to have one chance and to make your best offer upfront and that offer could be below, at or above listing price. The rest has to be the buyers choice.

The cooling off period begins when either the buyer or buyers representative (solicitor) has a copy of the fully signed contract. The cooling off period is for 5 business days and Les is also correct, there is a penalty of .25% of purchase price if you choose to use it.

I would consider a back up contract, these buyers may realise they have extended themselves or paid too much. Anything could happen. Ultimately though, you will find another one, possibly even better.

Multiple offers are a regular occurrence here now and the process isn't ideal I don't believe. I also want to clarify, I keep hearing that agents work for the vendor, and it is true, however the legislation also covers handling buyers and we do have a duty of care in looking after them too. It's no one way street and many agents forget this. This whole "The agent works for the vendor" line is getting out of control in my opinion.

Good luck EstatePrenaur.......and if you've got no Scotch go with a Bundy Rum....works for me

Kev
www.gogecko.com.au

 

[EstatePreneur]

Hahaha, guys, thank you sooo very muachh for your encouragement and support.

I'm feeling better now, and even much better today after, at laaaasssstt!!!!!

The vendor has just agreed with my last offer and just signed the contract!
I've just got my first ever PPOR, yehaaa!!!

I'm feeling pretty out in the blue now hehehe


And now, I'm waiting for settlement which is in about 1,5 months time.
Getting finance ready, and so forth, but I'm pretty unsure with the whole process from here.

I've posted a new thread here