Being played by REA

[StaceyQ]

Hi everyone,

I feel I've been played by the agent. A few days ago I ask the agent if vendor would consider reducing the price and I got a call to say yes - vendor is willing to drop $5000. Then when I call the agent back to organise for exchange, I'm told is $1000 instead of $5000.

What would you do in this situation??

 

[georgie1]

screw them. walk away on principle.

If its been on the market for a while they will run after you.

 

[willair]

Hi everyone,

I feel I've been played by the agent. A few days ago I ask the agent if vendor would consider reducing the price and I got a call to say yes - vendor is willing to drop $5000. Then when I call the agent back to organise for exchange, I'm told is $1000 instead of $5000.

What would you do in this situation??

Tell the agent to prepare the contract,and when you go to sign cross out the price the agent has put in,and put in the price less 5k,and watch their face,if they complain then just walk out the door by the time you get half way to the door see what happens..

 

[westminster]

Hi everyone,

I feel I've been played by the agent. A few days ago I ask the agent if vendor would consider reducing the price and I got a call to say yes - vendor is willing to drop $5000. Then when I call the agent back to organise for exchange, I'm told is $1000 instead of $5000.

What would you do in this situation??

Write up an offer for $10k less.

Frankly $1000 is nothing and not even worth your telephone call. Even $5k is not enough.

Yes you are being played but also in the vendors and REAs mindset they think you are an easy 'mark'. By asking if they would reduce the price they know you want it and they can state their favourable terms.

Be cold and unemotional if it is for an IP.

What price bracket is this property?
How long has it been on the market for?
Has their been any reduction in selling price so far?
How does the price compare to sold prices is comparable properties in the area?

Thos answers will dictate how much the property is worth and you ideally want to pay less than that if possible.

You then make your offer, they may counter offer and you decide if you want to pay that.

That is how I operate. You of course don't need to do the same but the aim of the game is not to let them know your top price and pay as little as possible for the property.

"I don't pay retail"

 

[StaceyQ]

Write up an offer for $10k less.

Frankly $1000 is nothing and not even worth your telephone call. Even $5k is not enough.

Yes you are being played but also in the vendors and REAs mindset they think you are an easy 'mark'. By asking if they would reduce the price they know you want it and they can state their favourable terms.

Be cold and unemotional if it is for an IP.

What price bracket is this property?
How long has it been on the market for?
Has their been any reduction in selling price so far?
How does the price compare to sold prices is comparable properties in the area?

Thos answers will dictate how much the property is worth and you ideally want to pay less than that if possible.

You then make your offer, they may counter offer and you decide if you want to pay that.

That is how I operate. You of course don't need to do the same but the aim of the game is not to let them know your top price and pay as little as possible for the property.

"I don't pay retail"

The property had been on the market for 3 - 4 weeks.
It will be my PPOR and price is in the low million. Yes what is $1000 for something over a $million so I'm just going to walk away now.

Thanks for your advice

 

[westminster]

Good for you staceyq especially for a PPOR as that often involves more heart than head.
I'm astounded that they are discounting $1000 on a million dollar property. I tend to work on the premise that Sellers often are expecting to get 10% less than their original asking price - unless they have a set amount they are trying to recoup - ie bought at peak, can't afford mortgage and have to sell.

 

[oneguy]

Yes agree. Walk away. If the come back with original $5000, which they probably will, if youre still interested, counter by saying too late, its now $10,000 discount with a 24 hour deadline.

Good luck and keep us posted if they come back.

 

[thepeoplesagent]

I’m not sure if “walking away” out of spite is the right thing here.
Realistically, there is a 4k difference. You said you were prepared to exchange contracts with a reduction of $5000. You got a reduction of $1,000. So there is a 4k difference. In the grand scheme of things you’re looking at less than 0.5% increase.

I dare say, if the property is not worth paying 0.5% more for, it’s not the right property for you. I’m not taking the agents side here but we don’t know what he/she is being told by the vendor.

All this advice regarding reducing your offer and giving the vendor a timeline? Take this advice if you don’t want to own the property… Put yourself in the vendor’s shoes, what would you do if a buyer reduced their offer and told you that you have 24 hours to accept it? I know what I would say but I won’t type it here.

 

[pinkboy]

I’m not sure if “walking away” out of spite is the right thing here.
Realistically, there is a 4k difference. You said you were prepared to exchange contracts with a reduction of $5000. You got a reduction of $1,000. So there is a 4k difference. In the grand scheme of things you’re looking at less than 0.5% increase.

I dare say, if the property is not worth paying 0.5% more for, it’s not the right property for you. I’m not taking the agents side here but we don’t know what he/she is being told by the vendor.

All this advice regarding reducing your offer and giving the vendor a timeline? Take this advice if you don’t want to own the property… Put yourself in the vendor’s shoes, what would you do if a buyer reduced their offer and told you that you have 24 hours to accept it? I know what I would say but I won’t type it here.

Agreeing verbally on price, then changing the price on the contract is not ethical. Do you go to Woolworths and pick up some chocolate that is advertised on special, then arrive at the check-out only to have the check out chick strike a cross through the special tag and proceed to charge you full price!

Sheesh, no wonder REA are snakes. Peas in a pod!

pinkboy

 

[thepeoplesagent]

As stated, we don’t know the full story and don’t know what the vendor is telling the agent. Regardless, even if the agent has done the wrong thing, even if he is the most unethical agent is Australia. Is it worth missing out on a home you love? I guess only Stacey can answer that since she is the one wanting to buy it.

Also, agents are one of the most scrutinised and regulated industries. So most agents are good people and do the right thing. Unfortunately, you only hear about the bad ones as a current affair programmes wouldn’t get good ratings if they made a story about a good agents.

 

[pinkboy]

As stated, we don’t know the full story and don’t know what the vendor is telling the agent. Regardless, even if the agent has done the wrong thing, even if he is the most unethical agent is Australia. Is it worth missing out on a home you love? I guess only Stacey can answer that since she is the one wanting to buy it.

Also, agents are one of the most scrutinised and regulated industries. So most agents are good people and do the right thing. Unfortunately, you only hear about the bad ones as a current affair programmes wouldn’t get good ratings if they made a story about a good agents.

Oh, its a 'he' now?

It doesnt take ACA to taint REAs with the same brush.

pinkboy

 

[depreciator]

I'm taking this side:

I’m not sure if “walking away” out of spite is the right thing here.

You've found a million dollar home you want to buy and live in and you're going to let $4,000 get in the way? Forget what the agent did or didn't do. If you really like the house, just buy it. You'll be in your new home by Christmas.

 

[sanj]

Good for you staceyq especially for a PPOR as that often involves more heart than head.
I'm astounded that they are discounting $1000 on a million dollar property. I tend to work on the premise that Sellers often are expecting to get 10% less than their original asking price - unless they have a set amount they are trying to recoup - ie bought at peak, can't afford mortgage and have to sell.

I think I have sold 6 or 7 properties in the last 3 or years, not a single one has been discounted 10%.

The old list it for high, expect a low offer and then meet somewhere in between has been largely counterproductive over the last few years in Perth as overpriced properties have sat there for ages.

Also agree with those saying ultimately 4k is bugger all if it is your PPOR.

 

[Jtkumnick]

never negotiate verbally. its your own fault.

 

[neK]

Also, agents are one of the most scrutinised and regulated industries. So most agents are good people and do the right thing. Unfortunately, you only hear about the bad ones as a current affair programmes wouldn’t get good ratings if they made a story about a good agents.

Scrutinised and regulated? You have got to be kidding me.
Financial Planning is scrutinised and regulated (and crap still flows thru)... real estate agents dont even come close to being regulated.

 

[Jtkumnick]

Scrutinised and regulated? You have got to be kidding me.
Financial Planning is scrutinised and regulated (and crap still flows thru)... real estate agents dont even come close to being regulated.

incorrect.

 

[thepeoplesagent]

Scrutinised and regulated? You have got to be kidding me.
Financial Planning is scrutinised and regulated (and crap still flows thru)... real estate agents dont even come close to being regulated.

As an agent, I have to do several courses per year if I want to keep my certificate. We have 7 pages of paper work to complete before we even list and market a property plus many more during and after the sales process. We get surprise visits from department of fair trading who go through all our files and trust accounts.

 

[mystery]

Agreeing verbally on price, then changing the price on the contract is not ethical. Do you go to Woolworths and pick up some chocolate that is advertised on special, then arrive at the check-out only to have the check out chick strike a cross through the special tag and proceed to charge you full price!

Sheesh, no wonder REA are snakes. Peas in a pod!

pinkboy

Pinkboy ...

We just bought a place in Goulburn (NSW), .... negotiated with agent and agreed on a purchase price, .. deal done. Got a call back a few minutes later to say vendors now want $2,000 more.

I said ..... We have an agreement, ... It's 2pm now, ..... They have until 5pm today to accept the agreed offer or I walk away..... At 4.50pm I got the call that they accepted our original offer ...... I gave the agent a huge lecture on ethical behaviour ... not sure it registered, but I felt better.

In fairness to the agent though I do tend to think it was the vendors trying it on and not her.

Mystery ...

 

[thepeoplesagent]

Pinkboy ...

We just bought a place in Goulburn (NSW), .... negotiated with agent and agreed on a purchase price, .. deal done. Got a call back a few minutes later to say vendors now want $2,000 more.

I said ..... We have an agreement, ... It's 2pm now, ..... They have until 5pm today to accept the agreed offer or I walk away..... At 4.50pm I got the call that they accepted our original offer ...... I gave the agent a huge lecture on ethical behaviour ... not sure it registered, but I felt better.

In fairness to the agent though I do tend to think it was the vendors trying it on and not her.

Mystery ...

Just like me or you, vendors sometimes change their mind. With all the emotion and excitement involved it can happen. Once the thrill of the ride settles, some reconsider their decision. After all, it’s a good chance they are selling their biggest current asset. So if a vendor changes their mind, it’s hardly the agents fault, the agent is just the messenger.

 

[pinkboy]

As an agent, I have to do several courses per year if I want to keep my certificate. We have 7 pages of paper work to complete before we even list and market a property plus many more during and after the sales process. We get surprise visits from department of fair trading who go through all our files and trust accounts.

O. M. G.

7 whole pages of paperwork. Geez, no wonder agents take a long time to get back to you - they are paperwork swamped!

pinkboy