I went and saw a property yesterday, I loved it, was also 2 other buyers looking. I was told that we had to put in a written contract in, fine with me, asked us to put in out best offer.
Now i’m not stupid, trying to make us bring our price up, i wasn’t even sure if there was another buyer putting in an offer, but i stuck to my guns, i missed out. But its the vendor who missed out, because they accepted the other buyers offer that was $2k higher than mine, i could have only gone up $1k or $2k if they came back to me and said hey we have a higher offer do you have another one…[comp], but that could have pushed the other buyer up.
Guess which agent i’m very going to use selling my properties
If you loved this property so much looks like your the one missing out.
Sounds like they just wanted a quick sale
How much was this property.?
2k isn’t much really.HI Letitha,
Not sure why the agent is ‘copping’ this one.
You put in your offer.
The agent presented it as he/she is required to do.
The owners accepted another offer.
Sometimes you do have to open with your ‘real’ offer and an not just an opening gambit and sometimes your offer is not accepted for any number of reasons.
Don’t blame the agent he/she was doing their job as they are required to do.
At the end of the day there will be other properties, some you’ll get, some you won’t and others you’ll choose to ignore. Don’t get hung up on this ‘lost opportunity’ use it as a learning step and move on and focus on the next opportunity.
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113If you want to play the game then do it by saying something like, ”My offer stands, let me know if something else comes up” If they aren’t prepared to accept it then play their bluff. Investing isn’t apart of love, it’s about being practicle. If it was love then yeah, maybe you should have given your best offer.
Well if they wanted a really fast sale, we were the first ones to look at it, they only had it listed 2 days.
I do a lot of negotiations as part of my job, or I get to watch experts do it every day, there is no way you would open with you best offer, especially if you have no way of knowing if there was another bidder.
I did tell the agents, that they could get back to be, at least my money is still in my pocket, would have felt worst if they accepted my highest bid and i was the only buyer ect.
I’m planning on going to speak to the onmsite management today, and justting them know if any of the other owners are interested in selling we can save some commission.
Originally posted by letiha:I do a lot of negotiations as part of my job, or I get to watch experts do it every day, there is no way you would open with you best offer, especially if you have no way of knowing if there was another bidder.
And would you have believed the agent if they said……….there is someone else submitting an offer ……………………………which they do not have to disclose to you?
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Good point Derek, but i suppose i can’t cry over spilt milk, and yes there is plenty of options avaliable to me.
But I stand by what I say about ever selling with this agency, they really did a diservice to their vendors.
Hi Letitha,
No worries – from reading your comments I do wonder if you got a little ‘attached’ to this possible purchase and have forgotten the ‘oh well onto the next opportunity thought.’
And I wouldn’t strike this agent from your list – he/she has worked with you on this deal and they know that you are serious.
Just be careful not to burn all of your bridges with anyone in the property industry – after all you never know who will punch your next ticket.
I am sure that your involvement in negotiations has highlighted a key point in negotiations – focus on the issue and not the person.
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113letiha,
very provacitive thread title., great!
however
The agent wasn’t that stupid when you consider what was in it for them. They work on a 3% commission usually so the difference between an agreed sale and an extra couple of hundred bucks in their pockets would not be worth the risk.
As soon as the RE Agent can get the vendor to agree to an offer, it is all over. Squeezing a few extra grand out of the buyer for the vendor is of no benefit to yhe Agent at all.
Even a gambler wouldn’t risk 9 – 10 grand for the sake of a few hundred bucks.
Great lesson in understanding the 3 dynamics of a sale.
Live, Learn and GrowLifexperience
I’ve had similar dilemmas with dealing with agents. On 2 separate occasions with the same agent I have submitted offers, on separate houses, and the agent said another offer was submitted at the same time that was accepted. This is really suspect especially when the accepted amount is for what I offered and I had no chance to further negotiate. Perhaps the agent has some associated interest (friend, relative etc) that gets an upper hand.
With my last purchase, I discuss with the agent what would be accepted. They do have an interest in having the sale go through and as such they see their job as making both sides come to an agreement (that’s when they get their money as already pointed out). Talk to the agent about why he believes the market value is and why. This is where your own knowledge of the market is useful in negotiating. You can give the agent some ammunition for negotiating with the seller. When you and the agent agrees the price is fair and is likely to be accepted I ask that the offer is immediately submitted so I don’t come up against this thing with multiple offers being submitted at the same time. I understand the agent can’t, by law, then submit another offer until the negotiation is over. If the owner says I’ll wait and see what other offers come in I then withdraw my offer as a standing offer puts you in a weak negotiating position. This is what happened with the last place I purchased and after a couple of weeks of the house not being sold I put in a lower offer than the original that was eventually accepted.
Hi jneale
I like your thinking. Do you mind if I borrow your ideas??Troy
TroynBec
You can have more than you’ve got because you can become more than you are
Hi folks,
As I understand it, a dutch auction as proposed is sort of illegal in South Australia. You can discuss what might be accepted but can’t get the details of what else is offered. There is a fine distinction between the two. The vendor can accept or offer to negotiate with one or more parties but the REA can only present the offers.
As a seller, I try to set a realistic target with REA first so (s)he can tell potential buyers that their offer will or won’t be considered. And I don’t always negotiate if the best of the offers matches what I need to get out of the sale.
As a buyer, it is not easy. If I am willing to negotiate, I let the REA know and sometimes they do come back. If vendor is after a quick sale (eg Executor Trustees) then it is often pot luck as there will be no negotiation – you have to put your final offer in the first time. I lost out on a good purchase once because I didn’t understand this or the terms the vendor was after. I learned from my experience.
Mum
The agent did the right thing, asked for your best offer, and you had every chance, just as the other buyer did, to put in you best offer. Maybe you’ll listen next time.
The agent would have presented those offers to the vendor, having said ‘this is the best we’ve got at the moment’ and the vendor gets the final say. They acted accordingly.
Basically, the agent gave the same right to every buyer that came to the property. It’s comments like yours that give agents a bad name when they clearly aren’t to blame.
(Yes I am an agent – and you get good and bad in every job, but if an agent isn’t to blame, don’t dish out your anger on them just because you lost fair and sqaure.)(“,) $$$ HoLdEnCoMmOdOrE $$$ (“,)
Holdencommodor said “(Yes I am an agent – and you get good and bad in every job, but if an agent isn’t to blame, don’t dish out your anger on them just because you lost fair and sqaure.)â€
I think the point being made here is that people feel they haven’t lost fair and square. From the perspective of the person buying they put in an offer and the next thing they hear back that someone else has bought it. Surely if you put in the offer first you should hear back before another offer is presented. You are left wondering about what has happened in the meantime. You wonder has someone else been contacted and told “If you want the property put in a better offer nowâ€
I hear from agents that Dutch auctions are not allowed but isn’t presenting multiple offers at the same time the same thing as a Dutch auction especially when no secret has been made that an offer has gone in?
I get the impression here in WA that members of certain ethnic groups tend to wait until someone puts in an offer and the agent then facilitate the gazumping of the offer. This all happens behind the scenes so there is no way of knowing what has happened.
I lost 2 sales this way with an agent that claims to specialize in selling to Asians. I think there is something wrong with a sales system that allows others to come in and make offers before you hear back and then facilitates this thing of multiple offers. Perhaps, if somehow, multiple offers are submitted at a single home open the sale could then fall back to an open auction with the people who had submitted offers. Then everyone would have been given an equal opportunity to offer what they are prepared to offer.
Everyone is given an equal opportunity though… their best price. I know where you’re coming from jneale, in that there should be more communication, because as the agent with an offer on the table but not being the actual agent presenting the offers, we’re stressing too.
The problem I’ve encountered with it the other way is that you end up ‘shopping’ offers around, in that no-one knows where its going to end, and considering the buyers weren’t prepared for an auction, they both ended up pulling out because they were sick of the process.
Where does it end? If both (or all) offers are presented at the same time, who cares who put the offer in first, the fact is the vendor will chose one of them. What we do is call each buyer to make sure that it is their final offer, then that’s it. It’s a tough call as to when you draw the line, but unless you do it in that way, it goes on forever, or else stalls – buyers become angry (again, from personal experiences) – ‘I told you when I signed it that it was my final offer!’ is a common line.
This is the case in Vic anyway.(“,) $$$ HoLdEnCoMmOdOrE $$$ (“,)
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