Listing prices below actual sale price - Is this even legal?

[neK]

A property I was looking at late last year has resurfaced on the market.

Previously it was listed as

1. offers over $810k
2. offers over $790k
3. For sale $790k

That was with Agent A.

The property was then taken off and now reappeared as this (with NEW Agent B):

$740k.

http://www.domain.com.au/Property/F... (postclick)&prevServer=Emails&haprof=1967823

Just called the NEW agent and he said its actually offers over 740k (even though domain does not have the word "offers over"). The address isnt listed on the ad, but i told the address which tweaked his interest in me.

Anyway, he then proceeded to say he's had offers of $760k already and the owner has rejected (mind you i saw this because i have a domain alert which only popped up in my email this morning).

Then he said the owner wants over $800k. I asked him why doesn't he just put that then, why $740k. He tells me because no one will call if he lists it as over 800k. His final comment was that he thinks he will sell it at 840k.

Quite frankly, i find this misleading and deceptive.... but what i want to know is whether it is legal (ie the listing of lower price but with no intention to accept).

 

[malau]

If I were you.. I will

Tell this agent what happened to this property before (about the price) if the owner changed the agent.

Make an official offer with sunset clause...

It happened to my friend before and my friend walked away..

 

[Ed Barton]

I ignore the plus after the price, or the 'from' or 'over'. In fact I mostly ignore the asking price all together.

In a hot market these are used as tactics to get a higher price where there are multiple potential buyers and an agent does really know the potential sales price due to a rapidly rising market.

In a slow market it's used as a 'we don't want to admit to a lower price'.

 

[TMNT]

one of my absolute pet hates,

ads that say above or + and you do offer above and they act as though you've ran over their dog

eg one listing said, offers above $480k,

so I offered $480k, and I got a stern warning about reading the price guide, agent was getting a bit smart with me,

so I offered $481k after thinking about offering $480,000.01.....agent didnt reply

 

[MichaelGilbert]

A property I was looking at late last year has resurfaced on the market.

Previously it was listed as

1. offers over $810k
2. offers over $790k
3. For sale $790k

That was with Agent A.

The property was then taken off and now reappeared as this (with NEW Agent B):

$740k.

http://www.domain.com.au/Property/F... (postclick)&prevServer=Emails&haprof=1967823

Just called the NEW agent and he said its actually offers over 740k (even though domain does not have the word "offers over"). The address isnt listed on the ad, but i told the address which tweaked his interest in me.

Anyway, he then proceeded to say he's had offers of $760k already and the owner has rejected (mind you i saw this because i have a domain alert which only popped up in my email this morning).

Then he said the owner wants over $800k. I asked him why doesn't he just put that then, why $740k. He tells me because no one will call if he lists it as over 800k. His final comment was that he thinks he will sell it at 840k.

Quite frankly, i find this misleading and deceptive.... but what i want to know is whether it is legal (ie the listing of lower price but with no intention to accept).

The owner of the property is at liberty to accept or decline any offer they choose. And yes as long as the agent is acting under the instructions from the Owner the Agent can increase the price.

 

[beachgurl]

I recently attended an open home for "offers over 480k". I knew it was worth much more than that. I expect the other 65 or so groups that came to the open thought the same. Sold for "over 530" according to the agent only 2 days on the market. Guess its the western suburbs way of creating an auction hysteria.

 

[Player]

A property I was looking at late last year has resurfaced on the market.

Previously it was listed as

1. offers over $810k
2. offers over $790k
3. For sale $790k

That was with Agent A.

The property was then taken off and now reappeared as this (with NEW Agent B):

$740k.

http://www.domain.com.au/Property/F... (postclick)&prevServer=Emails&haprof=1967823

Just called the NEW agent and he said its actually offers over 740k (even though domain does not have the word "offers over"). The address isnt listed on the ad, but i told the address which tweaked his interest in me.

Anyway, he then proceeded to say he's had offers of $760k already and the owner has rejected (mind you i saw this because i have a domain alert which only popped up in my email this morning).

Then he said the owner wants over $800k. I asked him why doesn't he just put that then, why $740k. He tells me because no one will call if he lists it as over 800k. His final comment was that he thinks he will sell it at 840k.

That's the best laugh I've had in a while. Tell the rea, that if it will sell for that much why didn't it achieve that price in the earlier campaign. Are there any serious structural issues with it? Maybe the previous rea was inept in handling the campaign.

Quite frankly, i find this misleading and deceptive ...............This is the game we all play when dealing with the rea. Be informed..... but what i want to know is whether it is legal (ie the listing of lower price but with no intention to accept)............Irrespective of whether it is legal or not, it is the game. It doesn't appeal to my ethics either, however they are the unwritten rules we need to be aware of. Fortunately you have awareness of the previous unsuccessful marketing efforts.

What does your own due diligence tell you the property is worth?
What are the comparable sales you can use to glean a reasonable price point?

As others have mentioned, I would ignore what the rea relays to you that the vendor has given as instructions and put in an offer (assuming you are interested in the property) that you think is fair. Put a time limit on it. If they play you against others, fair enough...........either go higher if you think there are other non-fictitious potential buyers, or just walk away, next........

BTW, your thread title is "Listing prices below actual sale price....." I don't understand. Did it actually sell or do you mean that, listing price is below what they will accept. If it's the latter...........once again welcome to the game and the smoke and mirrors and bullshark that some rea's spin.

Believe nothing. Always verify what you are told with your own investigations and research and enqquiries.

 

[ricflair]

I ignore the plus after the price, or the 'from' or 'over'. In fact I mostly ignore the asking price all together.

In a hot market these are used as tactics to get a higher price where there are multiple potential buyers and an agent does really know the potential sales price due to a rapidly rising market.

In a slow market it's used as a 'we don't want to admit to a lower price'.

And what market are we in at the moment, seems like it was getting hot and the media says it's hot......but I wonder what will happen n this federal huge that may affect property prices.

 

[neK]

Personally i think the property is worth around $730-$750k. Thats based on comparable sales (fortunately i have RPdata access).

This was a property I was looking to buy, but not anymore because I have recently settled on another property elsewhere.

I offered the vendor a fair price with an option of a 6 month settlement (and pending mutual agreement settlement could also be reduced) to give the vendor plenty of time to find something.

Regarding the previous REA, he is good at what he does (gets the sales and is smooth). The new REA is just sneaky (but thinks no one can tell - well thats my impression base on the way he talks).

As for the title, what i mean is the new agent has listed a price way below what he knows his vendor wants with the view that if he listed higher people wouldn't call him (remember he actually told me this over the phone).

I also emailed Agent A and he said the vendor came to him but he rejected her request to list the property because he knew she wasn't ready to sell.

I guess its more of an annoyance that REA can list prices way below the expectation to drum false hopes to push a price higher. Its just not ethical and surely borders on being illegal.

 

[Scott No Mates]

ask the agent for the comparables that he used & whether the advertising reflects the same amount as on the agency agreement. As if they'd tell.