I was asked to increase my offer at vendor solicitor's office

[htopg]

I made my offer to a property and vendor has accepted my offer last Friday.

Today, I got contract from vendor's solicitor and signed in front of my solicitor.
Then I brought the contract back to vendor's solicitor's office.

Vendor's solicitor told me that one guy has a higher offer than me and asked me to talk to my agent.
My agent said he will get our (me & the other guy) highest offers individually and he will decide who gets the property.
At the end, I paid $1500 more than my original offer to get the property.

Has anyone experienced this before?

 

[KangaBanga]

sounds like you might have got played at the last minute as $1500 more than your initial offer doesn't sound like the other "imaginary" offer was much higher.

 

[htopg]

sounds like you might have got played at the last minute as $1500 more than your initial offer doesn't sound like the other "imaginary" offer was much higher.

Could be...

I think that only agent likes to play this kind of game.
In my scenario, the vendor's solicitor said that the other buyer is coming to exchange contract at 4:30pm (one hour away) and asked me if I would like to increase my offer.

I think, it is either
1. there is really another buyer
which is very likely given that the market is hot at the moment

2. agent plays the game with vendor's solicitor
I don't think vendor's solicitor will play this kind of game.

 

[KangaBanga]

I am also quite puzzled why solicitor would bother to play the game.

why would solicitor tell you if someone has a higher offer if they are not the agent? they are just there to process the sale, they get the same fees and no benefit trying to get you to bid more.(unless in this case they get a kickback?)

also in a hot market, it is unlikely that the higher bid was less than 1500 above your bid?

 

[Terry_w]

Solicitors would do as instructed - ask for more money if need be. This would pay for the vendors legals. Maybe you should have waited for the other potential buyer and then had an arm wrestle for the property

 

[baby blue eyes]

If you are buying in Sydney at the moment I would expect it is true

 

[htopg]

Solicitors would do as instructed - ask for more money if need be. This would pay for the vendors legals. Maybe you should have waited for the other potential buyer and then had an arm wrestle for the property

Arm wrestle is a great idea
But I do not go to gym often, the chance of winning arm wresting is not high

 

[htopg]

If you are buying in Sydney at the moment I would expect it is true

I believe so.
This one is in Gosford area. Gosford is getting hot too.
I feel that I am competing with buyers who cannot pay for Sydney's crazy housing prices

 

[wylie]

I wouldn't worry about it for $1500.

 

[htopg]

I wouldn't worry about it for $1500.

Yeah, I have learnt "not worry about a few thousands" in the hard way.

In year 2013 alone, I have missed (& regretted) 2 properties of my dream just because I refused to pay $3500 and $2000 more respectively.

 

[DJBarnstar]

Better that than the other way round. Saw a senario recently (glad I wasn't involved) where the buyer was at the exchange table with a distressed vendor. Said he waouldn't exchange unless 10K was taken off the agreed price on the spot. Vendor caved.

 

[robbiejuve]

Yeah, I have learnt "not worry about a few thousands" in the hard way.

In year 2013 alone, I have missed (& regretted) 2 properties of my dream just because I refused to pay $3500 and $2000 more respectively.

Is this a PPOR or investment? Your comment above suggests its a PPOR in which case money means less as you say.

We nearly lost our PPOR over 5k and whenever we think about that we kick ourselves because we love it to bits.

Investments are different.

 

[HotRod]

As an investor don't get emotionally invested in a deal.

If $1500 extra still makes the deal work, just do it, that amount is chicken feed these days.

It says more about the vendor/lawyer than you.

If the amount is a big problem you could have just ripped up the contract in front of the lawyer, turned around and walked out with not a word being spoken.

If the market you are buying into is hot, maybe you should not be buying into the market. This from an investing POV, a PPOR is a completely different thing.

 

[VYBerlinaV8]

Better that than the other way round. Saw a senario recently (glad I wasn't involved) where the buyer was at the exchange table with a distressed vendor. Said he waouldn't exchange unless 10K was taken off the agreed price on the spot. Vendor caved.

I had a buyer try to do that to me last year when attempting to sell my previous PPOR.

I said no thanks, and walked away from the deal. Potential buyer got the agent to re-present the offer 3 times over the next 2 weeks. Said no each time.

I now have another IP.