How should property be marketed and sold?

[newstart]

Hi all, this is a very interesting topic but I missed it from the begining.
Another method from a REA that I've experienced recently. The property was ranged from $x - $y. At auction day, no bidder, the crowd was all neighbours who had nothing to do but just watched. The property passed in with vendor's bid of somewhere between $x and &y.
We went in and made an offer of $x but was rejected by REA saying that "you're gone backward" given that our offer was less than the vendor's bid. I specificly said that the market has spoken given that there is no interest, no bidder.
It wen on for private sale, pricing from $x - $y (the same price range as avertised before auction) but the REA keeps saying that the vendor want $z. This is a ridiculous $z given that the property is not worth that price in the area.
What would you do to make an offer if you're really interested in the property? How do you make a counter offer without showing your hands to the REA that the max amount you would pay for the property?

 

[Kevin Hockey]

Hi Newstart,

This is an example of the stupidity of price ranging some agents will do. It's primarily about "conditioning" the owner, the agent knows the vendors expectations are too high and they use these methods to educate them to a lower figure.

Price ranging was an idea created originally by a short, rather podgy pommy bloke called David Pilling and it was called..... wait for it.....The Pilling system (who'd have thunk it . In his system it required the vendor to arrange a registered valuation of the property and on that basis a "recommended buyer range" was promoted. Promo material would explain what the buyer range meant. Personally I believe this is the best way to sell real estate, only problem is consumers will never accept it.

To answer your question how to make your next offer, talk to the owner directly. Not in an attempt to take the agent out of the equation, please don't do that, but tell them your offer, ask them what they want and decide from there. Most importantly, be really likeable to them. If they warm to you they are most likely to be more negotiable. It's easy to dig the heals in over a name on a piece of paper. Much harder to be stubborn when face to face and the kids are picking out bedrooms and playing with their dog.

I want to reiterate, I do not condone getting with the vendor to screw over the agent. The owner has contracted them to do a job, in doing so they have introduced you to the property and regardless of anyone's justification of their abilities to do so, they have earnt the right to be paid should a contract between the 2 parties should occur. Just do it to get a result, either you can come to terms or not and everyone moves on.

When negotiations stall for me I often introduce the 2 parties. It's amazing how often they nut out a deal between them The deal wasn't going anywhere anyway so what's to lose.

Kev
www.gogecko.com.au