This is a first post and the topic may have been dealt with. Anyway, here goes. I have recently been trying to buy a couple of properties in a large regional Victorian city.
Virtually every property is for sale at “$xxxx plus”, or “Offers above $xxxxx”. When you ask the sales person “what is the actual price?” they won’t tell you. They say “we’ve had offers of such and such” but won’t show you the offers or tell you who made them.
I made an offer on one property where the agent had said “they will sell at that price” and the agent came back the next day saying they had to inform the others who made offers and one had “upped” mine by a few thousand and what did I want to do?
Well, I withdrew, because this is a form of blind-auction where you don’t see other bidders and they may even not exist. Other agents warned me to beware of “shonky” agents who invent offers.
How can all this be legal? If they want to auction a property, OK, but this form of selling seems un-ethical in the extreme. I’m looking for good strategies to undermine these guys and get a reasonable deal.
Hi enduser
A “dutch auction” is a common strategy with real estates and some private sellers. The anxiety created at the thought of someone outbidding you can often lead to hasty decisions and paying too much for a property.
They can list a property for whatever they want but a property is only worth what you are prepared to pay for it.
My wife and I always make a written offer with our own conditions on it. If the vendor accepts, great, if not we move on to the next one.
Take emotion out of the equation, set your own criteria to your purchases, set your own price based on your own research, include “out” clauses such as subject to finance, building and pest inspections etc, then go for it on your terms.
If you have to make thirty offers to find the one that works for you, then that’s what you do.
Anyway, good deals are there if you look hard.
Good luck
Papajoe
I’ve just been informed that this technique of “Offers above $x” is in use in Queensland for rental properties and is to be banned by the Government. It can’t be long before its use in selling goes the same way.
Focus on building rapport with the agent. Have them tell you about the local area and be impressed and grateful for their knowledge. Let them know you like them and pay them some complements, on their car, their skill in presenting the house, or whatever. I find if you build rapport you can then ask them direct questions and get real answers.
Slum Lord
I agree, slumlord, (love the alias). I’ve just heard from Consumer Affairs and in Victoria at least, this practice will be illegal from Feb 1st. All price data will have to be totally transparent from that day on, both for auctions and private sales.
They tell me that Ballarat is the worst, (Huge complaint numbers) and I bet prices will tumble there once the new legislation kiks in.
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