Can an agent do this?

[gooram]

When making an offer on a property recently, I sat down with the agent and told him my offer.

He said "no way, you won't get it".

He then informed me that a higher offer had already been made, proceeding to show me that offer.

He told me if I could match it, then the vendor's decision would be based on which buyer was more likely to receive finance, and that pre-approval would probably seal the deal if I matched the other offer.

I'm not really savvy on the rules in this situation, I think in hindsight, I probably would have questioned the agent a little more to establish the validity of the other offer.

I would have loved to walk away saying, no my offer is final, but I really wanted the property, and I thought the final agreed price was fair, the agent came across as fair dinkum (rarity!), so I was comfortable with the purchase.

I just don't know if agents can do this, any thoughts?

Thanks,
Gooram

 

[Rolf Latham]

Hiya

Sounds fair and reasonable to me

ta

rolf

 

[gooram]

Yeah fair enough...

I guess he was really cutting to the chase, which should be applauded.

The alternative scenarios would be to a) miss out or b) continue increasing my offer until the agent tells me "yep that'll do it".

 

[JamesGG]

Hiya,

Yes, he can do that, but...

If I were the other buyer, I would be outraged, especially if I was not then given the oppurtunity to beat your offer (should I be interested in playing games.)

Just out of curiosity, do you know if the other party was then told what your offer was, and given the chance to increase theirs?

What are your thoughts on that scenario?

Cheers

James.

 

[Alanna]

I will check with my other half who is an agent, but I know that in situations where he has had multiple offers coming in on the same property, he has not disclosed to either party what the other was offering, because often, even if you offer the same as the other party, it may be conditions on the offer which get you across the line - eg finance or cash for instance.
It may well be allowed, but just as importantly, is it ethical?

Alanna

 

[lizzie]

after my first shock reaction i was rather impressed that the agent put the cards on the table and bypassed the bs that agents are so famous for ... assuming the higher offer was valid as i have been caught out paying more than i wanted to by agents playing the "other interested party" card that turned out to be dodgy.

if he showed you a letter or something from the other party then you must assume it's true, but try to wait to see what conditions the other party comes up with first if you can. i once topped another interested buyer who went on to make the same offer on another house down the road - only for him to have that deal fall thru with no finance ... so if i had stuck to my lower offer on the orginal house, he would have fallen thru on that one to.

 

[paulie]

I am an agent in the perth hills and multiple offers in this current market is common.

In a recent REIWA newsleter it was pointed out that there are five main points that the real estate agent *should* cover with all prospective buyers when faced with multiple offers in WA.

~ He/she should inform all prospective buyers that more than one offer has been received
~ provide the buyers with the opportunity with a specified time, to present their BEST offer.
~ Take care not to disclose the price of alternate offers
~ Explain that the seller does not have any obligation to negotiate with any one buyer
~ Advise that the seller may decide to enter in negotiations with one buyer without any furthe referrence to the alternate buyers.

good luck

paule

 

[gooram]

Hiya,

Yes, he can do that, but...

If I were the other buyer, I would be outraged, especially if I was not then given the oppurtunity to beat your offer (should I be interested in playing games.)

Just out of curiosity, do you know if the other party was then told what your offer was, and given the chance to increase theirs?

What are your thoughts on that scenario?

Cheers

James.

I'm quite sure that the agent didn't allow the other buyer a chance to counter-offer, he presented the vendor with both offers shortly after and mine was accepted... which naturally made me question the validity of the other offer.

I agree that if I was the other buyer, I would be furious.

Perhaps the agent knew the other buyer could not go any higher? Who knows.

How would I feel about the agent giving the other buyer a chance to make another offer? I suppose if I was prepared to accept the fact that he showed me their offer in the first place, I guess I couldn't complain could I? Might be time to stop dealing with this agent at that point

 

[cloclo]

Gooram,
I reckon there was no other offer at all.
Agents (in sydney ) are desperate to make a sale.
In the last 2 months I have called their bluff twice.I walked away. They came back . They are always saying there's another buyer. When I say to them "sort the other buyer out 1st., then call me bacK". They realise straight away Ive called their bluff. But if there really is another buyer you will know by their response then. One agent told me 2 weeks ago he had a really interested young couple wanting to buy the property and they had done a second inspection. I was not really keen on the property. Since then he has called me 7 times!

 

[gooram]

after my first shock reaction i was rather impressed that the agent put the cards on the table and bypassed the bs that agents are so famous for ... assuming the higher offer was valid as i have been caught out paying more than i wanted to by agents playing the "other interested party" card that turned out to be dodgy.

if he showed you a letter or something from the other party then you must assume it's true, but try to wait to see what conditions the other party comes up with first if you can. i once topped another interested buyer who went on to make the same offer on another house down the road - only for him to have that deal fall thru with no finance ... so if i had stuck to my lower offer on the orginal house, he would have fallen thru on that one to.

I must say at the time I thought "what a guy" (yes I'm new at this ). I suppose his motivation is to sell, and to find the most likely sale, knowing the vendor will take the higher offer regardless of conditions, it was in his and the vendors interests to do it. The other buyer... well, what they don't know won't hurt them?

Yeah if I was prepared to let it go, perhaps I could have stuck to my original offer, but I wasn't, and wasn't prepared to risk losing it by calling his bluff.

Investing is speculative, in so many ways.

 

[gooram]

Gooram,
I reckon there was no other offer at all.
Agents (in sydney ) are desperate to make a sale.
In the last 2 months I have called their bluff twice.I walked away. They came back . They are always saying there's another buyer. When I say to them "sort the other buyer out 1st., then call me bacK". They realise straight away Ive called their bluff. But if there really is another buyer you will know by their response then. One agent told me 2 weeks ago he had a really interested young couple wanting to buy the property and they had done a second inspection. I was not really keen on the property. Since then he has called me 7 times!

This was a Perth agent, and the market then (and now) is still relatively hot, so I wouldn't be surprised if another offer was made. Also, I actually saw the offer and acceptance with the amount written in, it was but a glimpse so I didn't see any signatures, so I can't be sure it was genuine. I assume this would be fairly risky business for an agent to be so fraudulent.

 

[Les]

G'day Gooram,

and I thought the final agreed price was fair,

Fair enough - so don't go beating yourself up too much. You don't have to read too far to learn that property is a "forgiving investment" - and, if you're still happy with the price, AND IT'S NOW YOURS, then just enjoy it.

Of course, if you had wanted a "real deal" then you'd have to be prepared to walk away (with fingers crossed, perhaps). Sounds to me like you got what you wanted, so "Well done!"

Regards,

 

[suggo]

I think in a situation like that if he shows you the other offer I'd be tempted to take down their name and if there were phones numbers proceed to ring them. Would be interested in the agents reaction to this. As the seller I probably would be reasonably happy with the agents tactics. Maybe we should all be reading more "sales' books in an attempt to improve our neg skills.

 

[Bargain Hunter]

Highest Offer?

We have been shown other potential purchases offers and have made offers based on this information.

I would not be happy to find out that my offer had been revealed but hey...

The agents job is to get the highest offer for the property. By showing us he got a higher offer, the question is was it the HIGHEST offer he would have got had he not shown us the other offer?

There are two types of agents we deal with... those who we love to buy from and those who we like to sell through, they are never the same agents.

Regards

Andrew

 

[Kevin Hockey]

This scenario is typical of the reasons why people complain about agents. From what i can tell everyone here considered the agents actions as fair and correct and some have applauded him in his actions, but this agent acted poorly (assuming there was another offer), or disgracefully if it was dodgy.

Paulie described accurately the steps that should have been taken and one is NOT to disclose the buyers price to the competing buyer. This is part of the code of ethics under their local REI governing body. This may piss buyers off but......agents are paid by owners and we must work in their interests.

The other buyer should have been contacted again. Once another offer comes in all parties must be made aware or alternatively once the conditions of the other offer change I always gave the other party an option to make changes also.

I have a big question mark over this deal. Why did the agent only get you to match that offer, not go a fraction over at least. To suggest yours would win just on the basis of finance pre-approval doesn't add up to me. Who would know how the owner may react on that basis. Why did he appear to KNOW at that stage you would get it. If this agent was dodgy/ desperate/ untrained enough to go through the process he did then nothing he would do would surprise me.

This agents actions were not the correct procedure nor was it in the owners best interest. As buyers you may consider what he did as appropriate and "cutting to the chase" but nothing is further from the truth. I understand your points but that doesn't make it right. Again, because agents deal with both parties, buyer and seller, agents are always going to upset someone at some point but this kind of salesperson just gives us the tag of being unethical, immoral and unscrupulous. There should be no hidden agendas in any transaction.

Kev
www.gogecko.com.au

Kev
www.gogecko.com.au

 

[DavidMc]

He then informed me that a higher offer had already been made, proceeding to show me that offer.

I also read once on jenman that this is wrong.

I had a quick search around but I couldn't find it. Maybe I read it in one of his books? It's probably different from state to state anyway.

While we all want a bargain, there is no shame in paying fair market price. Think of 15 years from now, and those few $x000 you are down to now is irrelevant. If you really really want this place, my advice is to forget about 'the other buyer', decide on the highest price you'll pay for it and submit that offer. Let them know it's your highest and final bid and that you do not wish to be contacted 'if there is another higher bidder'. That will give you the best chance on securing the place. Anything less you do get a chance to get a bargain but also a chance to lose it.

Have you had an independted valuation done? (an excellent $200-300 investment). How does your offer compare?