15 Offers On 1 SA Property ... Say What?

Merovingian

Merovingian

I put in an offer for a unit in Adelaide's inner south suburbs on the weekend and the agent just told me there have been 15 offers on the property, and asked if I wished to confirm my offer.

There were a few at the open inspection, but no more than usual, I suppose.

15 offers is interesting... So what do you think — is SA really buzzing at the moment, (all over), or is the agent trying hard to get better prices for the vendor? :)
 
Well, my mother's house was open for one inspection a few months ago; not many people through but she received five offers on the day of the first inspection. That was a couple of years ago in the inner west of Adelaide so maybe it was true. For what its worth there is about 70% clearance rate at auction at the moment and an average property went for 150K over the reserve price - a basic 3 bedroom home in suburbia, last week. There just arent that many houses on the market at the moment.
 
According to Peter Koulizos and REA's I've talked to, SA has a severe shortage of sale stock at the moment which is forcing people to compete with each other. This property in particular I could'nt comment on whether the REA was bluffing or not.
 
Not sure about SA but in QLD an agent has to get you to sign a multiple offer form if there is more than one offer, just to show that legally they have informed you of the multiple offers....is SA the same?
 
CairnsAgent said:
Not sure about SA but in QLD an agent has to get you to sign a multiple offer form if there is more than one offer, just to show that legally they have informed you of the multiple offers....is SA the same?
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Never heard of it, but they're always more than happy to tell you! :rolleyes:
 
Not bluffing I say

With what I have just seen in the past month or two, I would be very supprised if the agent was extending the truth.
The property I just purchased had 14 offers and only had two private open inspections. (ie. not on Sat and Sun but on a monday night and Tues morning) was sold on Wed.
 
i put in an offer in old reynella 2 weeks ago , was told there were 9 other offers ( it was a really busy open ) , asked if it was my final offer , i said yes , and missed out.

thats ok , there will be others , but supply is short at the moment , agents are saying that their listings have never been so low , so it doesnt surprise me that there are multiple offers at the moment.

maybe people are waiting for spring to put their homes on the market , it might calm down a bit then
 
granev said:
i put in an offer in old reynella 2 weeks ago , was told there were 9 other offers ( it was a really busy open ) , asked if it was my final offer , i said yes , and missed out.

thats ok , there will be others , but supply is short at the moment , agents are saying that their listings have never been so low , so it doesnt surprise me that there are multiple offers at the moment.

maybe people are waiting for spring to put their homes on the market , it might calm down a bit then
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Peter K said as you mentioned - stock at the moment is very low. However he said he expected the pressure to ease up some what due to the rate rise, election uncertainty, and then Christmas/New Years straight after that.
 
steveadl said:
Peter K said as you mentioned - stock at the moment is very low. However he said he expected the pressure to ease up some what due to the rate rise, election uncertainty, and then Christmas/New Years straight after that.
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Hopefully this is the case. :)

I didn't get a call back from the agent so I suspect he was telling the truth about having at least 15 offers on the property.

An interesting situation for Adelaide...
 
15 Offers on a property ....why would one even bother competing against that?

Are these actually written offers or verbal only?

Personally, I might put in a written offer if I knew there was another offer on the table, but if there were two or more offers already in the system , I wouldn't bother as it would only lead to a Dutch auction.

Could someone with firsthand knowledge please explain how any agent can actually handle 15 offers at any one time?

Thanks

Joe D
 
Merovingian said:
An interesting situation for Adelaide...
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Yep, a lot of people from interstate look at Adelaide and think "wow, prices are cheap" so they bid up the cost of housing here.

But remember Adelaide bashing? Not that many people actually want to live here, and those that do are on Adelaide wages (which are low) so rents have not risen much outside of student accomodation very close to the CBD.

I rent a 3bdr house on a massive block 5km from the CBD for $220/wk. My landlord is paying tens of thousands of dollars a year for the privelege of me living in their house ;)
 
I have several IP's with a couple of them in Adelaide and purchased the second one a couple of months ago. On at least two occasions the selling agent for each property said he'd be taking all offers to the vendor by a certain date and time, so put in your best offer.

On both occasions I went in slightly under asking price for both as that was the max I was prepared to pay based on my calculations to make the deal work. I missed out both times, but at least the agent called me back. I much prefer this system than the agent performing a dutch aution by going back and forth between interested parties trying to jack up the price.

I always have at least 5-6 properties on my list when negotiating so that when I miss out on one I just go straight onto the next one. At times with my Adelaide purchases I'd have 2-3 offers in at the same time ... If one gets accepted I just withdraw my other offers. I find that for me this takes the emotion out of the buying process.

Martin :p
 
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Merovingian said:
Hopefully this is the case. :)

I didn't get a call back from the agent so I suspect he was telling the truth about having at least 15 offers on the property.

An interesting situation for Adelaide...
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Same thing happened to me earlier this year, except there was only one other offer on the one I was interested in. I bid $142k from memory, they then went and signed with the other guy for $145k without even calling me back, even though for all they knew I would have gone higher. In this case, the vendor got screwed becuase the agent didn't (IMO) do their job properly. Whether it ended up with me or the other guy, the vendor would have been at least a couple thousand better off!

mystery said:
I have several IP's with a couple of them in Adelaide and purchased the second one a couple of months ago. On at least two occasions the selling agent for each property said he'd be taking all offers to the vendor by a certain date and time, so put in your best offer.

On both occasions I went in slightly under asking price for both as that was the max I was prepared to pay based on my calculations to make the deal work. I missed out both times, but at least the agent called me back. I much prefer this system than the agent performing a dutch aution by going back and forth between interested parties trying to jack up the price.

I always have at least 5-6 properties on my list when negotiating so that when I miss out on one I just go straight onto the next one. At times with my Adelaide purchases I'd have 2-3 offers in at the same time ... If one gets accepted I just withdraw my other offers. I find that for me this takes the emotion out of the buying process.

Martin :p
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That's a very good strategy to have, I'll have to try it next time round. In the past I've moved from one place to the next ie. missed this one, ok next...
 
back in 2001

When we started buying in 2001 there was always multiple offers, maybe 5 or 6. Then it dropped off and for the last couple of years most of the time agents have had things sitting around and then they get 1 offer. It's only bee the last 6 months maybe that have started getting multiple offers again.

A very good sign.

Things are selling at the first open or selling before the first open. And getting good money. Lots of WA investors over here buying.

It's nice having a REA in the family, gets lots of good info on how the market is and where the buyers are.

So to answer the question, yep I reckon they got 15 offers. But a bit of good news, we bought 1 place and we where the lowest offer but cash, no subject too, no building inspection, no white ant, just cash, nice and easy. A no hassle sale which the vendor liked. So even with lots of offers you can still be lucky.

Cheers
quoll
 
steveadl said:
I bid $142k from memory, they then went and signed with the other guy for $145k without even calling me back, even though for all they knew I would have gone higher.
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That just seems to be the way things are over here. We have had it happen to us. When they ask for your best offer that's it, 1 shot only.

We have had agents come back and ask for a better offer but that has been when things are quiet.

You just have to put it down as one of the rules of the game, can't see that you can do much about it other than live with it.

cheers
quoll
 
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