Hi all,
Not sure if this is the right forum to be asking in, as its not related to direct investments.
But its the only good real estate forum i've come across.After a long time looking i've found a house that i like and is affordable.
So i put an offer on it but the whole process seems very suss and i feel like theres something going on.The house was advertised for $320 – $360 and has been on the market for 6 months.
Even though its still for sale the vendor has also advertised it through an agent for rent as the house is vacant and because its not sold, its costing him money.So i put in an offer for $320, signed an REIV contract and handed over a $500 'good faith' deposit.
Contract was subject to building and pest inspection.
After 5 days and not hearing a word from the agent i called him to ask whats going on, are there any updates etc etc.He said he cannot get onto the vendor and will call us back soon. 3 more days and no word from the agent.
So i call him back and get told that he still hasnt spoken with the vendor. So he'll call back again.In the mean time i saw that the rental add had been removed, so i rang the rental girl and she told me it was not for rent anymore because the house has been sold. After hearing that i rang the agent back and he told me that the vendor wont sell for anything less than $340 and he is not happy with the condtions that we have imposed. And now someone else has also put in an offer that was also rejected.
Thats now out of my price range to i said thats unfortunate, can i arrange to get my deposit back.
Agent said i can but will need to wait another 4 days as the boss is not in and only he can issue a refund.i also keep getting asked when talking to the agent if i'm still interested.
So after all that, my question is, Is this the normal process? Is the agent trying to play a game with me etc?
14 days later and i still have no refund or word that the vendor has accepted the offer after some thought etc etc.
Cheers,
Garysounds like a dutch auction to me, i wouldn't be giving too much information away if its been advertised for that long.
push for your money back asap and suggest your only still half interested if the vendor is interested in selling.
and also mate it is an investment, the biggest investment not everyone has the drive to make.
Thanks Adam,
i've been trying to analyze the situation for over a week now, driving me crazy.
I just checked now and its back on the rental market now. So not sure if they are playing games.
Might just be a really useless agent with a combination of a stubborn/unrealistic vendor.Theres a slight change of me being able to secure some more money to up my offer slightly.
Do you think i should hold off or make another offer?Hi Gary
Unless you can in reality afford to pay more, and it is really worth it, it is only emotive and emotions and making money do not go together. It is only a house and there is always another one.
Ignore the agents $340 twaddle and change your conditions and get creative if you can and try to make it attractive that way. Give them a deadline and then walk away, they might even chase you later. It has happened to me and many others I am sure.
Not sure why you gave them cash for the deposit; stick to cheques if you can and put a written condition on it that they only cash it if they accept the offer.
Cheers
Peter
Hi again Gary
Remember this always, contracts are not a one way street, REIV prepared or otherwise, or just for the vendor's benefit. If you don't like something in it or want to add or delete, you have that right (the other parties might disagree, but you can still propose changes).
If everyone agrees, you need to get intiials of all parties against the changes along with the main signatures, but don't be bluffed into thinking you have no choice but to bend forward and grab your ankles.
Always be nice, but at the same time assertive and keep control as much as you can.
Cheers
Peter
Gary,
You should keep pushing the agent to refund your deposit. Or you could directly talk to the boss of the agent.
As far as raising your offer is concerned, that depends on how much you can afford and whether the property is worth that much or not. you could check out the price of other houses around before you make another bid.
Cheers!
Gmoney336 wrote:Agent said i can but will need to wait another 4 days as the boss is not in and only he can issue a refund.The boss may be the only person with authority to operate the trust account. In any case, it’s rubbish – call them today and demand your refund – it’s extremely unprofessional on their behalf.
Best of luck.
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]
Thanks for all your comments,
I’m thinking of approaching the vendor directly and seeing if we can negotiate a private sale.
It might be abit unethical but I’m having far to much trouble with this agent.
Presuably due being on the market for so long it should be out of the ‘exclusive period’Gmoney336 wrote:Thanks for all your comments, I'm thinking of approaching the vendor directly and seeing if we can negotiate a private sale. It might be abit unethical but I'm having far to much trouble with this agent. Presuably due being on the market for so long it should be out of the 'exclusive period'Actually Gmoney336 .. there is no reason why you cant approach the vendor directly anyway. The agent is entitled to his commision if he introduces a purchaser to the property who eventually purchases it. If the property goes to sale with another agent and the same purchaser goes and purchases the property, the agent who had the initial dealings with the purchaser can make claims for remunerations from the proceeds of sale.
As an agent there would be times where i would chase up a property that went off the market only to find that they had sold privately to the introduced party. That wasnt acceptable and there were a few times that this was chased up.
There is no reason you cant chase up the owner for direct negotiations if you feel the agent isnt being thorough or honest. The agents job is to bring together the two parties and create a workable negotiated deal at a reasonable price. If he isnt doing that .. go direct.
As Kenny Rogers said (I know showing my age) know when to walk away.
It would seem to me you are being played here and your enthusiasm is making you vulnerable to manipulation.
Consider the following the property has been in the market for 6 months, your original offer was in the asking range and there is no tenant in situ. On this basis alone I expect the owner is hurting a little.
If you are prepared to walk away then send a written notice indicating your offer only remains valid for 2 further days and it will be formally withdrawn at this time. At this time you will be coming into collect your deposit money as the offer has now lapsed.
While it has taken some time to find this property – it is only a piece of dirt and there will be others.
i think i will increase my offer to $330k, if thats not accepted i'll walk.
330k is still a reasonable price to pay for the house. It meets all our needs and is in the location that we want, and below the average price for that area.Just have to word a good offer now and see what happens!
Gmoney, increase and they have you where they want you.
Listen to the others here – they have brought many houses. Don't get sucked in.
Gmoney336 wrote:i think i will increase my offer to $330k, if thats not accepted i'll walk.
330k is still a reasonable price to pay for the house. It meets all our needs and is in the location that we want, and below the average price for that area.Just have to word a good offer now and see what happens!
Gmoney, how did you with your offer? Did you end up approaching directly?
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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