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If all offers were accepted then I would imagine that the bank wouldn't loan you the money to buy all the properties anyway so you could legitimately cancel under the finance clause, couldn't you?
I sold real estate for 8 years. When a property took a long time to sell, it was usually because the price was too high.
By now, any agency agreement with your real estate agent would have run out so, yes, you can sell privately and the agent will not be entitled to any commission. However, having said this, I would send a letter to the agent to let him know that the Sole/Exclusive Agency is now terminated. You can still be "open listed" with the agent which still gives him/her the opportunity to sell the property.
Selling your own property in a fairly remote area may not be as easy as you think. Why not try another agent? Have you heard of Jenman Approved Offices? Check out this link: http://www.jenman.com.au/AboutApproved.php. You may find someone who can help you to sell. Be fussy about your agent. They are handling a lot of your money.
I hope this has helped. If I can help you further, please ask any question.
Regards and good luck.
Jacqueline
I guess you could use the "cooling off clause" if all offers were accepted.
Jacqueline
Why don't you perhaps look for a sales job. Most pay commission only so, I guess, they usually are willing to give someone a go. If you can find a position somewhere where you can get good strong training, it might lead to something. Many sales jobs don't mind if you are not experience because this means that you haven't picked up any bad habits. There are even sales jobs in the telecommunications industry, from time to time, which is where your experience lies. If you can secure a sales job and start earning some money, things may not seem so grim down the track. Also, you can then get some "local knowledge". Hang in there. I have met with many South Africans who despaired because it was so hard to get work but eventually they did secure work. You will too.
Good luck and welcome!
Jacqueline
I never did get to meet anyone from Canterbury Properties. An appointment was arranged, however, on the day when I was supposed to meet a representative,Tim, I received a phone call from Tim, who I had initially spoken to, who told me that they (Canterbury Properties) were no longer taking on any new clients because they mainly worked on a referral basis. Also, he said, they didn't have enough properties for "new comers" and their loyalties were with their current client database who would be given first preference for properties, etc. It was suggested that I call back in 4 months. I won't.
I shouldn't fail to mention that when I originally spoke with Tim, we got chatting and I mentioned that Dan Croke (the CEO) had had some bad press in the past. Tim went a little quiet and told me that there was someone in the office who could explain all that stuff to me (I actually got the impression that it was Dan himself). I guess the company figured it was just easier to cancel the appointment than to have to explain everything.
I never did get to meet anyone from Canterbury Properties. An appointment was arranged, however, on the day when I was supposed to meet a representative,Tim, I received a phone call from Tim, who I had initially spoken to, who told me that they (Canterbury Properties) were no longer taking on any new clients because they mainly worked on a referral basis. Also, he said, they didn't have enough properties for "new comers" and their loyalties were with their current client database who would be given first preference for properties, etc. It was suggested that I call back in 4 months. I won't.
I shouldn't fail to mention that when I originally spoke with Tim, we got chatting and I mentioned that Dan Croke (the CEO) had had some bad press in the past. Tim went a little quiet and told me that there was someone in the office who could explain all that stuff to me (I actually got the impression that it was Dan himself). I guess the company figured it was just easier to cancel the appointment than to have to explain everything.
Who did the valuation? Your bank or a registered valuer? I know that we had a valuation with one bank, Westpac, some time ago and the valuation came in at $850,000. Based on these figures, they wouldn't loan us the money we wanted to buy another property. However, the ANZ bank valued it at $1,000,000 (shortly thereafter) which was enough to allow us to do what we wanted. Perhaps you need to try another bank.
Jacqueline
I always asked for a 5% or 10% deposit, when selling real estate, because it really is a sign of good faith. If the purchaser only puts down, say, $100, what have they really got to lose if they go cold on the idea of purchasing the property? They could walk and all that's lost is $100 (sure the vendor can sue but that's pretty messy). If there's a substantial deposit, it's a lot more binding on the buyer and he/she has a lot more to lose.
Jacqueline
Hey Tony
I can't remember the exact wording of a Buyer's Declaration but I'm pretty sure it didn't contain the word "if". It would have been more like: [name of buyer] is aware that there is another offer on the property at [address] and acknowledges that he/she must make their best offer blah, blah, blah. No if's or buts … definite wording. Perhaps if you were to contact a Jenman Office in the area where you live, you could tell them your problem and ask if they could provide you with the wording. Then you could prepare your own Buyers' Declaration and go and see the agent with it.
As far as what offer I would recommend to a vendor, I wouldn't recommend either but would outline the pros and cons of both. Ultimately, the decision would be the vendors. However, if I was a vendor in the scenario above, I would go with the cash offer for $2,000 less. At least then I would be fairly assured of the deal happening. In my experience, most vendors would take the cash offer if the amount offered in both contracts are not that far apart. But I guess there are always exceptions to the rule.
How badly do you want the house? It doesn't sound like you're that keen. Maybe you should move onto another property. If you want a win in the negotiation aspect, this may not be the property for you. Obviously the vendor hasn't accepted the offer even though it is cash. Can I ask what the property is listed for?
You know, everyone expects to beat the "vendor" down on price. I often hear comments along the lines "Oh, they wouldn't list it for the price they want. There's got to be room for movement." I ask: "Why does there?" If a property is worth $150,000 all day long, and the property has been priced realistically, why should a vendor drop his price? If someone wants it, they will pay the price. It's only if it's not competitive in the market place (there's similar properties on the market for less) that you could expect to negotiate the price. Maybe the property you want is worth the amount the vendor is asking. Maybe it isn't. Obviously the vendor seems to think it is otherwise I would have imagined he would have taken your offer (if it was a fair offer).
Thanks LA Aussie and Hieung for the words of support. And LA Aussie, I'm with you on Neil.
I would insist on the Buyer's Declaration. The agent should not have a problem with this if in fact another buyer does exist. Failing that, I would perhaps ask for input from the Principal of the office (mind you, you have no guarantees that the Principal is ethical).
The way our office used to deal with multiple offers was to inform the buyers of the situation, have them sign a Buyer's Declaration, have each contract drawn up and signed by the different buyers (without disclosing to each buyer the other offer or conditions) and then each contract would go into a separation A4 envelope which would be sealed (very coat and dagger, huh?). An independent person in the office (not the listing agent), usually the Principal, would present the offers to the vendor who ultimately made the decision.
I can't think of any other way around the situation. If your agent is not prepared to sign and have you sign a Buyer's Declaration Form, maybe you could ask the Real Estate Institute in the State where you are how to go about obtaining proof from an agent that another buyer does in fact exist.
How did you feel about the agent before this "second buyer" came onto the scene? Did you trust him?
It's been a few days since your original post, have you even heard from the agent? If there was another buyer on the property, how come there doesn't seem to be much urgency behind the sale of the property?
For what it's worth, I was trained under the Jenman System. I can hear the cringes. Love him or hate him, you really can't fault his training – it was pretty good. Personally, I don't think the man is out for self gain. I think he's overly passionate about what he does and he's a bit of an idealist (what's wrong with that?). He does get carried away with his cause but I think his heart is definitely in the right place.
Good luck, Tony. I don't know if I've helped much.
Jacqueline
Hi Paul
I haven't heard from these people yet. Maybe they've tried to call me when I've been out. If there are any future developments, I will definitely let you know.
Jacqueline
Hi Paul
I haven't heard from these people yet. Maybe they've tried to call me when I've been out. If there are any future developments, I will definitely let you know.
Jacqueline
Forget about the price on the other property … maybe the vendor is desperate for a very quick sale and has put a low price on it for that reason. If you just go ahead and buy the house you've got a contract on, I'm sure that you'll make money on it down the track. What other people are asking for their properties hasn't really got a lot to do with your transaction. I can't imagine that your bank wouldn't have valued it up to what you have paid if it wasn't worth that amount.
When I used to work in real estate, if I told a buyer there was another offer, THERE WAS ANOTHER OFFER. It amazes me how many buyers think this is just some line an agent dreams up to get a sale. Sure, agents are paid a commission. It's their job to list and sell houses – that's how they get paid (why do people begrudge this? Would you go to work for nothing?). If you are dealing with an ethical agent, the other offer would be the real thing and I would imagine that the agent would have you sign a Buyer's Declaration which states that you know there is another buyer on the property and you realise that you are putting forward your best offer. If there is no other buyer, I am sure that the agent wouldn't go through this process just to secure a sale. Give them the benefit of the doubt. Not all agents are unscrupulous. Just like not all buyers are particularly nice, honest people.
Jacqueline
If you were to increase your offer by, say, $5000, at the end of the day this would mean about a difference of $10 per week to your mortgage (at 9.5% interest). Would you miss out on the house of your dream for $10.00 a week? I know I wouldn't. You keep saying that if someone wants to pay more than it's worth, so be it. Isn't a property worth what a buyer is willing to pay? It's not so black and white.
I sold real estate for 8 years and often would have more than one offer on a property. My approach was the same … you have one go at this so make it your best. What's the property really worth to you? Are you prepared to let it go and start searching again? How long have you been searching? At the end of the day, when the property has gone up in value, will the $5,000 really mean that much? All property appears dear at the time but with the passage of time, they are cheap! My husband and I bought a property about 14 months ago for $513,000 (at auction). We were bidding against another buyer and had had the intention of paying only $470,000-$480,000 at the time (which was fair market value). We wanted the property and that was the upshot. We paid some $30,000 more than we had intended. The property's value is now $800,000 and that is without exaggeration. So, in hindsight, it was a good move.
Do you intend to live in the property for some time? I know that there are no guarantees in life, but if your plan is long term and you can afford it, increase your offer by $5000 and GO FOR IT! I'm not saying that you'll get it for the extra $5,000 but one would think it would put you in the ball park. If the $5,000 takes you over the listed price, EVEN BETTER. I have sold many properties for more than the listed price and I've never once had a buyer say that they had regretted paying the extra money. In fact, with the property that my husband and I bought, that I mentioned above, the reserve was set at $490,000. We didn't quibble about the fact that we had paid $23,000 more than the seller wanted. We're just so glad we bought it!
At the end of the day, the agent is working for the Vendor as he is the one who is paying the commission (not you!). How would you like it if the agent told the other buyer your offer? To not tell each buyer what the other one's offer is, is the fairest system to all buyers involved and to the vendor. By the sounds of things, your agent is very ethical and one that I would recommend you sell through as you would want an agent to work in your best interest if you were selling.
STOP MUCKING AROUND or you're going to miss out. GOOD LUCK.
Regards
Jacqueline
Hi Pwellsau,
I too have stumbled onto this site and I have become very curious. Did you have your meeting on Monday as mentioned? If so, how did it go? Apparently they will be phoning me tomorrow. I don't know what to think about everything I read. Whenever something seems too good to be true, it usually is. I would love to hear from you.
Jacqueline
Hi Pwellsau,
I too have stumbled onto this site and I have become very curious. Did you have your meeting on Monday as mentioned? If so, how did it go? Apparently they will be phoning me tomorrow. I don't know what to think about everything I read. Whenever something seems too good to be true, it usually is. I would love to hear from you.
Jacqueline
