This is an interesting one...made a written offer today on a house in South Australia for $17,800 over the asking price, sight unseen. The agent just came back saying that the offer was unsuccessful and that the vendor has accepted an offer $10K under ours because the other buyer has seen the property and the vendor thought it would be too much trouble dealing with a buyer interstate?? We have finance approved and the only condition on our offer was 4 days pest and building.
How's this????
- Thread starter T&T
- Start date
Sounds like he sold it to a "mate" for a good price. I wonder what the agent got out of it?
Im a RE sales consultant in South Australia. If your going to submit another offer and would like assistance let me know, I can view the property and submit your offer for you. I bet you the succesful buyer was bridging to purchase but still had a house to sell..... Hearing a story like yours really makes me mad....
Do you know the address of the property? Why not send them a letter thanking them for the opportunity to purchase and that although your offer was $10K more than what they had accepted you wish them all the best.
In this environment i wouldn't be in a great hurry to pay over market price to be honest. Rates will soon hit 9%, the banks will be running their serviceability numbers at 11%+ so theres not going to be a lot of cash swishing about in the system. Not to say prices still won't rise but if we're still getting net 4% rental yields.. do the maths.
He offered over asking price. If the property has had two offers significantly over asking price, then I'd say the asking price was well below market.
T&T, definitely something fishy here - or else the vendors were incrediby naive and conservative. I'd be tempted to do as twobobsworth suggested, to ensure that the vendors really did have your offer put to them.
Is it possible the vendor knew the pest & building reports might turn up something very negative ?
hi T&T,
Sounds like the sort of thing I'd do. I've sold three places this year, the first one was a scenario as you have described, we went through the process then the purchaser wanted to renegotiate the price, because they hadn't seen the property and the building inspector pointed out a number of aspects the purchaser hadn't considered, by the time the dust settled the second purchaser who had offered less but didn't want a building inspection had moved on. We ended up loosing six weeks in our marketing. After that I thought I wouldn't worry about these "complicated" interstate sales, I'd just take the simplest route which was around the mark - Don't you just love a sellers market when you've got places to sell - We ended getting above our original expectations on all three, selling to local purchasers, so anecdotally the market here in SA is moving and quite possibly not entirely fuelled by interstate purchasers looking for a cheaper market to invest.
TOm
Sounds like the sort of thing I'd do. I've sold three places this year, the first one was a scenario as you have described, we went through the process then the purchaser wanted to renegotiate the price, because they hadn't seen the property and the building inspector pointed out a number of aspects the purchaser hadn't considered, by the time the dust settled the second purchaser who had offered less but didn't want a building inspection had moved on. We ended up loosing six weeks in our marketing. After that I thought I wouldn't worry about these "complicated" interstate sales, I'd just take the simplest route which was around the mark - Don't you just love a sellers market when you've got places to sell - We ended getting above our original expectations on all three, selling to local purchasers, so anecdotally the market here in SA is moving and quite possibly not entirely fuelled by interstate purchasers looking for a cheaper market to invest.
TOm
Argh!
I know how you are feeling.
We were living in the UK and found a great property.
We spoke to the agent and they said the property needed to be inspected, as it was run down. (Perfect!)
We paid a builder to inspect, placed an offer at $530k.
We were notified we were the highest offer and bought some bubbly.
All went quiet.
We called and the agent said our offer was declined and the next best offer would be accepted because we didn't view the property personally!
We came back to Oz six months later.
The same property came back on the market 2 months after we were back for 720k. 8 Months for $190k
The worst part is they did nothing. No improvements!
I asked reiwa to investigate because it smelt like blue cheese on a good day.
Reiwa asked the agent nicely if any improprieties occured.
The agent to everyones surprise said NO.
Amazing. Case closed.
Burns me to this day.
Always thought i should have hired a Private investigator to see if the Agent and buyer knew each other!
Blood starting to boil, enough said. Feel your pain. Argh!
I know how you are feeling.
We were living in the UK and found a great property.
We spoke to the agent and they said the property needed to be inspected, as it was run down. (Perfect!)
We paid a builder to inspect, placed an offer at $530k.
We were notified we were the highest offer and bought some bubbly.
All went quiet.
We called and the agent said our offer was declined and the next best offer would be accepted because we didn't view the property personally!
We came back to Oz six months later.
The same property came back on the market 2 months after we were back for 720k. 8 Months for $190k
The worst part is they did nothing. No improvements!
I asked reiwa to investigate because it smelt like blue cheese on a good day.
Reiwa asked the agent nicely if any improprieties occured.
The agent to everyones surprise said NO.
Amazing. Case closed.
Burns me to this day.
Always thought i should have hired a Private investigator to see if the Agent and buyer knew each other!
Blood starting to boil, enough said. Feel your pain. Argh!
.....or maybe the other 10K lower offer was unconditional cash and the Seller didn't want to, or couldn't afford to, phaff about with your conditional offer.
.....or maybe you were up against the neighbours who were naturally prepared to offer a better contract than what you forwarded, as it had development opportunities when the blocks were combined.
.....or maybe the Seller's business partner bought him out as part of a larger deal to transfer equity into the business.
.....or maybe one of ten other legit reasons that make good sense to the Seller and no sense to the prospective Buyer.
As a hapless interstate unseen prospect.....the contract you offered, unless it was a clean unconditional contract, wouldn't of impressed me much either.
.....or maybe you were up against the neighbours who were naturally prepared to offer a better contract than what you forwarded, as it had development opportunities when the blocks were combined.
.....or maybe the Seller's business partner bought him out as part of a larger deal to transfer equity into the business.
.....or maybe one of ten other legit reasons that make good sense to the Seller and no sense to the prospective Buyer.
As a hapless interstate unseen prospect.....the contract you offered, unless it was a clean unconditional contract, wouldn't of impressed me much either.
Why on Earth would you ask them to investigate their own financial members. Very strange ???
REIWA was not set up by REA's to help the public prosecute REA's.....??
Hi Dazzling,
Long story, however REIWA was engaged to investigate the issue for us and provide a reasonable explanation which could not be obtained from the agent.
Reiwa are able to facilitate this.
Any reasonable explanation would have made us feel better. ($$$,conditions etc)
They weren't engaged as solicitors to prosecute etc? Not sure if you are mixing up agencies?
Sometimes best just moving on and focusing on the next prospect!
J
Long story, however REIWA was engaged to investigate the issue for us and provide a reasonable explanation which could not be obtained from the agent.
Reiwa are able to facilitate this.
Any reasonable explanation would have made us feel better. ($$$,conditions etc)
They weren't engaged as solicitors to prosecute etc? Not sure if you are mixing up agencies?
Sometimes best just moving on and focusing on the next prospect!
J
Hi Mav....
Yeah I'm pretty confident who REIWA are exactly, and also what they can and will do, and what they can't and won't do.
If you were looking for a "reasonable explanation" about one of their members - no problem....they have hundreds of them lined up ready to go even before you call. I've had a slight involvement in developing the list (it's long) for excellent fob off lines. It's what passes for "professionalism" nowadays.
None are independently verifiable by yourself and you'll never know if they are telling you the truth. The explanation will sound fantastic.....it's sole purpose....and you'll be completely relieved that they've 'contacted' the rogue agent and been re-assured that everything was above board and hasn't breached their self imposed Code of Ethics. Have a read of it if you get the opportunity, it's a hoot.
You'll be merrily on your way and they'll carry on doing what they do. Everyone leaves happy.....and that's all that counts in the end.
Yeah I'm pretty confident who REIWA are exactly, and also what they can and will do, and what they can't and won't do.
If you were looking for a "reasonable explanation" about one of their members - no problem....they have hundreds of them lined up ready to go even before you call. I've had a slight involvement in developing the list (it's long) for excellent fob off lines. It's what passes for "professionalism" nowadays.
None are independently verifiable by yourself and you'll never know if they are telling you the truth. The explanation will sound fantastic.....it's sole purpose....and you'll be completely relieved that they've 'contacted' the rogue agent and been re-assured that everything was above board and hasn't breached their self imposed Code of Ethics. Have a read of it if you get the opportunity, it's a hoot.
You'll be merrily on your way and they'll carry on doing what they do. Everyone leaves happy.....and that's all that counts in the end.
do you mean reiwa or reba? reba are the guys you should have gone too
Daz,
I would have been happy if they referred to the "list". Just a simple fable for pleasant dreams sake.
What did they do?
The situation turned into keystone cops meets real estate.
REIWA came back to us telling us that the highest offer was from, an Australian couple living in the UK.
After hearing this i said, that was us!
Are you sure there were two lots of people living in the UK making an offer?
Reiwa rechecked and said they were told some misinformation and the deal was done locally.
Reiwa asked the principal to help us directly.
Principle looked into it, said he needed to speak with the owners.
Never heard from again....
At the end of the day, we paid a builder to conduct a survey.
Placed a very strong offer which also happened to be the highest and just wanted some type of reason why our offer wasn't picked.
Legally their would be no obligation to select our offer, none the less some explanation seemed to be in order, just out of common courtesy.
If they weren't happy with us being overseas and submitting an offer, they could of saved us the expense and told us.
Was being distant from the transaction the reason?
Not sure, unlikely to ever be.
I would have been happy if they referred to the "list". Just a simple fable for pleasant dreams sake.
What did they do?
The situation turned into keystone cops meets real estate.
REIWA came back to us telling us that the highest offer was from, an Australian couple living in the UK.
After hearing this i said, that was us!
Are you sure there were two lots of people living in the UK making an offer?
Reiwa rechecked and said they were told some misinformation and the deal was done locally.
Reiwa asked the principal to help us directly.
Principle looked into it, said he needed to speak with the owners.
Never heard from again....
At the end of the day, we paid a builder to conduct a survey.
Placed a very strong offer which also happened to be the highest and just wanted some type of reason why our offer wasn't picked.
Legally their would be no obligation to select our offer, none the less some explanation seemed to be in order, just out of common courtesy.
If they weren't happy with us being overseas and submitting an offer, they could of saved us the expense and told us.
Was being distant from the transaction the reason?
Not sure, unlikely to ever be.
This happened to us on our penultimate factory deal.
The elderly REA fell off a ladder and was laid up in hospital for 2 weeks. Both the Vendor and I wanted to strike while the iron was hot. We were both competent businessman and within 45 minutes had negotiated and executed the deal.
It's only when one of the parties to the deal is a "wet handbag" that they need the REA to hold their hand.
If there are two competent parties to the contract, the REA's usually stand around like spare ******* at a wedding....cos they have no lawful authority and are not party to the legal paperwork, despite their little logo at the top.
When the REA finally got out of hospital and found out the deal was complete, he was pretty happy to have earnt 48K for lying there on his back, blissfully unaware of what went on, and totally removed from the process.
I commented to the Seller at the end of execution that I was glad he was paying the REA's fee, and not me. The Seller just grunted.
Dazz,
This particular REA was really angry that we contacted the Vendor. He said we were unprofessional and unethical in contacting the Vendor.
We didn't care. Our REA was fiesty, and she had a great time with him, after that.
She sent us a copy of the emails they exchanged to each other
He isn't even a REA any longer.
This particular REA was really angry that we contacted the Vendor. He said we were unprofessional and unethical in contacting the Vendor.
We didn't care. Our REA was fiesty, and she had a great time with him, after that.
She sent us a copy of the emails they exchanged to each other
He isn't even a REA any longer.
