How do we know

[Elke]

How do we know if there really was another buyer? We offered today, th seller accepted then ten mins later a phone call to say the 'other buyer ' had offered 20k more. I did some calc s and realised we could beat it so I offered 1k above their offer. At this point the selling agent said, I don't want to start a bidding war, we'll leave it at this price and issue two contracts and whoever is in first wins. We agreed - went ahead - then a half hour or so he called to say the other party had withdrawn their offer and were out of the game, so it is now ours.

It all seemed rather odd. Why would he stop a bidding war? It's plausible for another buyer to jump 20k, but is there a way to find out if they existed ? Or can we go tomorrow to the agent and offer 19k less if we're now the only interested party???what if the vendor accepts a lower offer ! We haven't signed contract yet so cd get gazumped at the open tomoro but also means were not locked into the price we offered.

 

[Singo]

Agents always tell this 'other buyer' story and most of the times such buyers never exist! You have to decide how much that property is worth and how that property suits your investment strategy. We can't go on to buy all properties we want, can buy only a number of them and the ones we buy have to suit our strategy!

 

[Elke]

Now that the 'other buyer' has pulled out can we reduce our offer ? Anyone tried that?

 

[D.T.]

Now that the 'other buyer' has pulled out can we reduce our offer ? Anyone tried that?

Put an expiry duration on your original offer?

 

[wylie]

Why not rescind your offer, and say you want to offer the lower amount. You would need to be prepared to lose the house though.

Was there ever another offer? Who knows. Is it likely there could be a higher offer put in today? Who knows?

The agent knows you were prepared to pay another $20K but if he now knows that you suspect he was lying (even if he wasn't) then he might push for the vendor to take the originally accepted lower offer. Again... who knows?

 

[The Fence]

Stick to your original offer, the so called other buyer has pulled out so back to you..
Stupid game played by agent.

 

[DaveM]

LOL the old "another offer higher" line that miraculously came in 20 secs after you made yours.

You are bidding against yourself and the agent is laughing all the way to his next BMW M3.

 

[Dazz]

We offered today, the seller accepted then ten mins later a phone call to say the 'other buyer ' had offered 20k more.

This is where your system in NSW sucks.

The "seller accepted".....what exactly does that mean in NSW. Apparently not a lot.

In WA, when a Seller accepts your offer, the offer is in writing, the acceptance is in writing and the contract is instantly binding as soon as the Seller signs that they accepted your offer.

Accept should mean accept, not a 'yeah maybe, but we'll just hang around a bit and see what else swims along that catches our eye'.

In NSW, the offer seems to be this flimsy verbal stuff, the acceptance is another flimsy 'yeah why not", and both mean absolutely diddly squat in a legally binding sense as someone else can come along 10 minutes later and crash the whole show with a higher offer. It seems weeks can pass before this "exchange" occurs when it actually starts to get real.

 

[geoffw]

This is where your system in NSW sucks.

Agreed.

The "seller accepted".....what exactly does that mean in NSW. Apparently not a lot.

In WA, when a Seller accepts your offer, the offer is in writing, the acceptance is in writing and the contract is instantly binding as soon as the Seller signs that they accepted your offer.

As in Queensland.

 

[Dazz]

As in Queensland.

I was under the impression that Qld and WA were very similar Geoff, but didn't want to speak out of turn cos I have never transacted land in Qld, so couldn't be sure.

I'm sure plenty of Qld investors on here can confirm who have experience.

 

[jameso]

I would rescind the second offer, take it or leave it.
I had a similar thing happen with my PPOR. made an offer, got accepted, next morning agent tells me there is a higher offer, I told him they could have it,
strangely enough the second offer disappeared.

James

 

[geoffw]

I was under the impression that Qld and WA were very similar Geoff, but didn't want to speak out of turn cos I have never transacted land in Qld, so couldn't be sure.

I'm sure plenty of Qld investors on here can confirm who have experience.

We sold in Queensland but it was getting on ten years ago, so I don't know if it has changed.

The buyer wrote his offer and faxed it. We wrote a price down and faxed back. There were quite a few numbers written down when we agreed and initialled the accepted offer. Exchange was then deemed to have taken place.

A lot nicer than NSW or ACT.

 

[MKP]

Pull out and let them beg for you to come back. I have done that once and we bought the house at my price.
MKP

 

[travelbug]

Depends how badly you want the property. If it was me I'd get my back up (I'm like that ).

I'd say well we have reconsidered also and rushed into jumping the extra $21K due to pressure and that after discussing it realised it wasn't worth that.
Then leave it in their court.

2 can play at that game.

It does seem funny that he told you the others had dropped out though. Unless he was worried he'd get found out.

Was the agent aware you had more money to play with?

 

[Elke]

It gets odder

I didn't mention in my orig post that when he called to say the other party had pulled out ( when I bettered their 20k jump by 1k more), he said : they have withdrawn their offer altogether, so the house is now yours. What I did is to offer 10k less to the seller on your behalf, bec you are good people, and she accepted.'

Huh??

 

[Perp]

You can't find out whether the other buyer existed, but like others, I'd be willing to bet that they don't.

The question is whether you're willing to call their bluff and risk missing out on the property.

I'd revert to your originally offered amount, but if you'd rather buy at your original price plus $21K than miss out, then you're in a tricky situation and have a challenging decision to make.

 

[chindonly]

Can you ask to see the other offer, with the confidential parts (names) blocked out or covered?

It would confirm the address and offer amount.

If the agent won't provide this - then - ??

 

[geoffw]

You've just played a hand of poker. Against a very experienced player. You don't know if the other player bluffed or not. So you up the ante. Everybody has shown their hands. And now you want to withdraw that last raise of the ante.

I don't know that it works that way.

 

[The Fence]

It works the way the buyer wants it to work....it's not poker and therefore no rules.

Revert to original offer and take it from there. Plenty more for sale.
Agent has upped the offer without authorisation and on a false bid from a non existent buyer.
It stinks Geoff, why would the OP's hands be tied under these conditions?

 

[roe]

You been played perfectly by someone who can read you..the fear of missing out is a powerful force... most people cant control this fear....

Never go above your set price EVEN if someone tell you there is another buyer, ten buyers etc.

its a slow game in Properties but in a stock market FOMO is a fast game and if you are a holder of stock that get the good news and people start to FOMO stock can rise to dizzy level before it fizzle out and the winners is the early holder who cashed out.

that why it pays to practise to stick to pay only the price you willing to pay that represent value

It doesn't matter if you can afford more or not it about buying something that represent values not over pay if 20K-25K more still represent value to you then I wouldn't worry about it..