Can an agent refuse to write up an offer?

[Big Mike]

Hi,

Two weeks ago, we found a property that we liked.
It had a price with a "plus" after it, meaning roughly 10% higher.

So we made an offer in the higher range of the 10% region and was then told that the vendor wanted a price that was 15% higher than the advertised price.

I asked if they were then going to change the advertisment to reflect our offer, eg $650 plus, instead of the advertised $595 plus?

They told me they only have to change the advertised price if I make a "written" offer.
I asked if I could come in and write up my offer, and they refused to let me!

I was under the impression that all offers had to be presented tot he vendor, and not just "verbal" offers?

(I am in Victoria)

 

[S.T]

I would still put a written offer to them then get a reply also in writing. You could do this via email or a letter.

If you have proof and want to take it further you can contact Consumer Affairs Victoria on 1300 73 70 30 and make a complaint.

 

[Big Mike]

I thought about writing it all on email, at least I would have evidence that I intended to make an offer. But the offer has to be written up formally.

I also called Consumer Affairs, and the lady didn't have much of a clue - apparently the last time someone was actually taken to court was in 2011.

I think more effective methods include writing on their Facebook wall my concerns, and meeting with the owner of the company (we are going to a focus meeting with him next month!)

But I am just curious - does an agent, by law, have to accept a written offer?!

 

[buzzlightyear]

There are a few questions/issues in your question that I would answer.

Firstly, the REIV guidelines say that the only way to price property is either a single price or a range (it must be 10%). Any other way is not strictly within the guidelines. That prompts the question, why do you see so many agents quoting other ways....Don't have the answer for that one.

If you had offered high in the 10% range, and the response from the agent was that they were wanting 15%, this is a clear breach. There maybe good practice to confirm the offers in writing (for obvious reasons), but if they received multiple verbal offers around the same price as you had offered and were rejecting them, it is obvious the price expectations were too low, so they should change the price quoted range to reflect the market. But having the price that low, does attract buyers and the normal rules of conditioning buyers start.

As for submission of offers, yes, all offers, whether verbal or in writing should be submitted to the vendor. Again, it might be good practice to accept in writing of course. However, if the vendor's instructions to the agent said please don't bring me low ball offers, I am not interested, then the agent doesn't have to. For example, I am advertising at $400-$450k (the reserve being $450k), and I say to the agent, do not care about any offers less than $430k, then the agent doesn't need to bring any offers made which are less than $430. Of course why you would actually say that to the prospective purchaser is showing a level of inexperience or the agents complete disregard for the purchaser. And there goes any possible way that this REA will possibly get a listing from the prospective buyer.

Karma or is it Darwinian laws, will always get you...

 

[Jake Milne]

The way I'd handle the situation is to just ask for the contract and section 32. Have your conveyancer check through it. Then, when you're ready just fill out the contract yourself (or with your conveyancer).

Scan and email the documented offer back to the agent; they have to show it to the vendor regardless of price. It would help your cause though if you discuss settlement terms, price and conditions with the agent first and get verbal agreement from them... If you're not willing to go up on price explain that you're happy to meet the terms and conditions that the vendor wants.

A few tips when filling out the contract:

1. Put at least a 24 hour deadline on the contract. Write "1" in the part where it says offer lapses in 3 clear business days unless otherwise stated.

2. Make your offer unconditional if you have pre-approval.

3. Put in special conditions a prior access clause and a chattels "good working order" clause. Your conveyancer can help here.

 

[BayView]

But I am just curious - does an agent, by law, have to accept a written offer?!

The Vendor may have given the agent instructions not to waste his time if the offer was a verbal one; written offers only or seeyalater, etc.

But, the agent probably would have divulged that instruction to the buyer.

We have done this ourselves; no verbals - just a written, and only above $X.

Stops time wasters.

 

[oc1]

Do what Jake said and make a written offer. Take it one step further and get the owner to counter-sign it. Then it's game on.

Cheers Oscar