Dealing with REA's at their own game - strategies and ethics

Hi,

As we know, REA's often play "games" in order to push up sales prices. Things like, during negotiations, calling and telling you they have just had a higher offer (which in nearly all cases I've dealt with personally or heard of via friends is a white lie - but something which they nearly always try on).

What are people's tips/tricks on playing similar games back, and does anybody have any objections in doing this?

Eg.:

Finding auctions which have been passed in. Sending a friend / spouse to look at the place, and get them to act very very visibly distressed about how "crap" it is, what a waste of time going, how ever priced it is. You can then follow up a week or so later, and talk it up along the lines of "its OK, but X and Y are pretty bad, how about x% less as the offer".

Or, starting to negotiate on price, act very interested, then telling them that your bank just dropped your finance limit by X% just before making an offer, and this is now the highest you can go.

Has anybody got any other tips, and experiences on sucess with these? Would anybody find any of these too unethical at some stage, or fair game?

Cheers!
 
Would anybody find any of these too unethical at some stage, or fair game?

About as unethical as the Real Estate Agents that everyone on this site seems to have pleasure in bagging, but then you are 'Investors" and agents have learnt to take what you all say with a grain of salt.
 
At auctions you need the property to be on the market as low as possible.

Agents will put a huge amount of pressure on a vendor if they know other buyers are at an auction waiting to bid.

I would have 3 friends inspect the property and take contracts. Make the agents believe your friends will bid on the day. When the auction comes around they sit on their hands and if the agent approaches them, they simply tell him/her they won't bid until its on the market.
 
No Games Zone

Just understand what is an acceptable or appropriate price you would be happy to pay and let everything unfold.

You will be amazed how a straight shooting, honest, upfront and clear communication of your objectives can change the dynamic between the REA and yourself.

I think its pointless to engage in any games. In the end, doesn't depend on the interest and demand in the property? Whatever games you play are totally superfluous if others are interested in paying more.
 
Keep it simple and don't blab.

If selling only tell your agent wht you would be happy for potential buyers to hear. Do not become the weakest link.

When buying be very clear what it is worth to you and don't pay any more. Be clear with the agent that you work on numbers. Don't boast about your property portfolio. The agent doesn't need to be impressed with you. You need to be impressed with your own buy.

Treat agents like people. You might be surprised :D
 
Most agents just want to sell the place so they can get their commission (pay check) same as every other worker, you go to work and look forward to that pay cheque each week/fortnight/month.

As others have said it's just a numbers game, there are plenty of deals out there you don't have to chase any of them, just move onto the next one and the next one until you get one at the right price. If the agent or vendor make it too hard walk away.

I don't like playing games, sometimes I probably talk too much and I should learn to just be quiet and let the agent do all the talking.

Keep true to yourself and that solves the ethics questions.

Cheers
Graeme
 
Mate,

I think you're batting for the wrong team there. This is - after all - a property investming forum

By the way, do you have a link to a RE forum. Now that would be entertaining.

About as unethical as the Real Estate Agents that everyone on this site seems to have pleasure in bagging, but then you are 'Investors" and agents have learnt to take what you all say with a grain of salt.
 
Hey! Loosen up guys - The comments were a little tongue in cheek, but perhaps they were too subtle for you to see, you are so fixated at looking at the negatives of negotiation that you help to perpetuate the very things that you despise.
 
Ethics: REA;Investors;used car salesmen;Vogons
Douglas Adams said:
It has been said that Vogons are not above a little bribery and corruption in the same way that the sea is not above the clouds, and this was certainly true in his case. When he heard the words "integrity" or "moral rectitude", he reached for his dictionary, and when he heard the chink of ready money in large quantities he reached for the rule book and threw it away
 
Interesting thread. I work on Saturdays so hubby has been to some inspections without me. We've been looking at certain properties that have been on the market for months.

He has made some low-ball verbal offers on properties. I am thinking of going and making an even lower one... is it possible to condition the agent to a low price? usually it is the other way round (they condition us to pay a high price!)
 
But the agent isn't allowed to disclose the amount of the higher offer so how would they be able to provide written proof??


From Office of fair trading website.
http://www.fairtrading.nsw.gov.au/T...uying_property/Making_an_offer/Gazumping.html

Negotiate firmly with the vendor or real estate agent. Insist on the agent passing your bona-fide offers to the vendor and obtain written proof of this occurring. The law requires agents to do this. Be ready to exchange with a signed copy of the contract and follow through on the exchange process yourself or with another trusted person to ensure exchange. If you are advised that other offers have been made, demand to see written evidence. If you are certain that you want the particular property, be ready to possibly increase your purchase offer to the vendor.
 
Maybe Jon can shed some light on this?

If you are advised that other offers have been made, demand to see written evidence

Stu, your extract doesn't say that agents are obliged by law to disclose offers to other buyers.
 
Jon

I've seen you post a similar post previously. That was along the lines of you implying its the buyers/sellers fault that the RE industry is so crooked?

And its their fault they are treated so badly by agents because they have this negative mindset toward them.

What a bizarre attitude. The public would respect agents much more if they were treated honestly and with respect from the get go. After all its the agents making the bucks from the transaction.

Just about every survey i have ever seen relating to which industries are trusted less by the public has the RE industry at last or very close to.

I certainly don't want this to turn into an agent bashing thread but mate, please restrain from the patronising.

And for the punters reading this thread. There is a popular saying in the RE industry. It is "buyers are liars" Pretty cool huh?

Hey! Loosen up guys - The comments were a little tongue in cheek, but perhaps they were too subtle for you to see, you are so fixated at looking at the negatives of negotiation that you help to perpetuate the very things that you despise.
 
What a bizarre attitude. The public would respect agents much more if they were treated honestly and with respect from the get go. After all its the agents making the bucks from the transaction.

Evand, I guess it depends upon which side of the fence you are sitting on and the age old question about which came first - the chicken or the egg.

Sure this is an Investor site with Investors looking for advice and while I am not suggesting for one moment that all Agents are angels (Just as not all Investors are angels), I am equally sure that if both sides work with honesty and respect for each other everyone will be better off. I won't stand by an let beginners listen to the garbage quoted by some put out investor with an axe to grind without giving the other perspective or side to the story so that they can make a decision based upon all information.

There is a popular saying in the RE industry. It is "buyers are liars"
Yes, and you can't fit a square peg in a round hole but then that's not necessarily true either is it?
 
VBplease asks
Maybe Jon can shed some light on this?

Hi VB, Most agents who have been in the industry for any period of time will learn that multiple offers need to be trearted with caution and respect. I am not aware if it specifically states in the act how this must be handled but in Queensland we have a specific form that we get Buyers to sign when there is a situation where multiple offers are being negotiated. Obviously at the end of the transaction someone is going to miss out and perhaps not be happy. Good agents learn quickly not to cry wolf as it invariably comes back to bite you. That is to say, I will never say that there is another offer if there isn't and if there is you will be asked to sign the multiple offer form for my protection againts future possible litigation.

The Form basically says:- The Buyer acknowledges that they have been informed as to the existance of another offer on the property. They agree that their offer is their best offer and that they may not have another opportunity to negotiate a higher price. Or words to that effect. Come what may, no one likes a 'Dutch Auction' as there is always a looser who believes that they have been poorly done by. If there is that much interest in a property it may be beneficial to the Seller to convert the sale to an Auction.
 
I always thought that the agent is acting for the vendor and their interests - the purchaser hasnt hired them - and that is where someone like a buyers agent would come into play to act for the purchaser... or if you are good enough where you do it yourself.

It can be interesting as a purchaser will hire someone to do everything else for them - the finance, the conveyancing but they wont actually hire a pro to negotiate the the transaction cost for them

(Bear in mind I'm not talking about seasoned property investors here of course....)
 
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