How Bid Rules Work?

[Kenster]

Hi all,

I am making an offer to buy an IP. The offer was made Friday 21/10. The agent said his agency had the policy of getting vendor Sell/No Sell answer within 24 hours.

I did not hear nor could contact the agent until Monday 24/10 when he said he received another offer higher than mine and asked if I wanted to up-bid. He acknowledeged that he disclosed my offer bid to the other buyer "but not to the last cents".

He explained if I up-bidded, he would take it to the other buyer and ask them for another "best offer".

What position do I have with this agent?

It appears this is the doing of an individual agent only. He works for a reputable REA, one of the largest in Victoria.

Thanks

 

[livewildcard]

Could be a real buyer, could be a fake one. Can be very trick to prove or find out.

Either way it doesnt really matter if there is or not.

Does the up-bid still make all the numbers for you stack up? Is it within other reasonable sales in the area?

If the up-bid was still making everything look ok its a personal choice, go for it, win it (whether it be a fake other bidder or not) and move on or you can opt to say no thanks. You'd be suprised every now and again they call you back and say, sorry, that buyer has dropped out now, you still interested?

You dont really have any choice, play the game and make sure it still is a working business model (which investing is after all) or just wipe your hands and look for the next deal.

Due your own due diligence, get a figure in mind before/after you start and dont go over because then you know your eating into your profits etc!

 

[cu@thetop]

You are buying an IP so remove emotion from the picture.

If it was me I would pull out saying "It seems the other party are keen on it so I don't want to get in their way and steal their dream"

Wait 1 week and ask if the property sold. If so- tuff titties, if not then

"But agent - you said they were keen- why did they pull out? Did they see something I missed? I'll make another offer but it will be lower to factor in this new unknown problem".

Always fun to screw with their heads.

 

[spludgey]

Tell him that you want to see the other offer in writing.

Personally, since it's a buyer's market, I'd walk away if someone else was bidding for the same property as me.

 

[locko24]

"But agent - you said they were keen- why did they pull out? Did they see something I missed? I'll make another offer but it will be lower to factor in this new unknown problem".

Always fun to screw with their heads.

Haha - classic!

 

[RedCat]

This happened to me a few years ago on what we thought was our future PPOR. It had been on the market for quite a while. I had a valuation done which came in at 870K. Advertised price was 950K.

We put in a written offer of 900K as a final and only offer. Agent came back and said he had another buyer and we would have to raise our offer. I wasn't sure if he was for real or not, but the valuation helped us decide not to put in another offer even though we loved the place AND remember PPOR, not IP here.

I actually expected the agent to call back next week and tell us the other "buyer" pulled out but he was telling the truth!!! I didn't regret it - melted telling ourselves we would have been paying too much over valuation if we continued the bidding.

Turned out well for us. We found a better property a month later for more $$ in a better location. Don't ever regret it and silently thank that other buyer still today!

 

[Kenster]

Thank you all

 

[Jaggannath]

I would have thought disclosing your bid price was illegal... to hint is one thing, but he's supposed to be working for the vendor, not the buyers