Little white lies you've told to secure a property

[Scott No Mates]

2. I use RP data, and it lets me see the ownership, weather is single person, husband and wife, or whatever.. This helps in the sense you know your most likely dealing with 1 vendor
3. Rp data also shows when they bought it, and how much they bought it for. Obviously this is great info to have. If you know they bought it 3 years ago for 500k and now they are only asking 550k or less, most likely the sale is by a distressed seller for some reason (if you can find out that reason by putting 2 and 2 together from all your analysis then even better).

4.I have found a lot of REA's are really not that bright

This is part called effective preparation - you should have an idea of the circumstances of the vendor, knowing that you are dealing with the decision maker (pointless negotiating with anyone else - this applies to every negotiation). Some agents like to give the impression that they aren't that bright - many run a business quite effectively and are quite canny.

Also, agents can access information to find out what properties you own, its not hard. Not that they would be bothered I guess, but something to consider. Not all agents are fools, the best ones to deal with are the lazy ones that are out of area who under value properties and work for the buyer not the seller.

A decent agent will qualify you as a buyer ie. will establish your motives, your financial position, how much you can spend, when you will have funding available/how much etc. Out of area agents may appear to underprice properties however (quite strategically) they will present the property below market to ensure a quicker sale (and less time tied up for them in concluding a sale).

I've pretended to be a buyers advocate trying to secure a deal win win for everyone, when I'm actually the buyer looking for an outright victory.

REAs also lie. Some make up lies about having offers.

Acting as the BA can be effective, especially on the initial queries to sift through the BS is something I've done in the past, sometimes it has even been legit.

I've never heard that an agent may lie, just like they've never taken a dummy bid at auction.

 

[LeoT]

I highly recommend you get the right structures for your particular scenario, this could save you $ and also reduce risk.

PLus 100!

 

[MTR]

.Out of area agents may appear to under price properties however (quite strategically) they will present the property below market to ensure a quicker sale (and less time tied up for them in concluding a sale).

Yes, I understand this is also a strategy to attract buyers and can work well.

However, I am talking about the agents which are out of area and clueless, seriously under valuing properties.

We have experienced a rising market over the last 2 years in Perth and I can not believe how many properties sold way under market value. A friend got one 2 months ago in one of the hottest areas in Perth. The agent had buyers jumping on it and he still under sold it to her. Bugger the seller, they are only paying for his service.

My Kardinya property which was bank valued prior to settlement in May 2014 bank valuation came in at around $150K higher than purchase price, that is insane.

 

[LeoT]

.Out of area agents may appear to under price properties however (quite strategically) they will present the property below market to ensure a quicker sale (and less time tied up for them in concluding a sale).

Yes, I understand this is also a strategy to attract buyers and can work well.

However, I am talking about the agents which are out of area and clueless, seriously under valuing properties.

We have experienced a rising market over the last 2 years in Perth and I can not believe how many properties sold way under market value. A friend got one 2 months ago in one of the hottest areas in Perth. The agent had buyers jumping on it and he still under sold it to her. Bugger the seller, they are only paying for his service.

My Kardinya property which was bank valued prior to settlement in May 2014 bank valuation came in at around $150K higher than purchase price, that is insane.

I agree. I've seen out of area agents do crazy ****, accepting crazy low offers. I love em but pity for the vendors

One of the worst I've seen is an out of area agent market and sell a unit that had almost perfect harbour bridge views without even showing it on the marketing material and not even mentioning it to the potential buyers. Some lucky ******* managed to get it at least 50k under value.

Oh hang On..wasn't that me ...

 

[LeoT]

I love RPData - you can guestimate a lot from it.

.

Agree. Its safe to say RP data has saved me many 10s of thousands over the years, and a massive amount of time!

 

[Jacque]

I've pretended to be a buyers advocate trying to secure a deal win win for everyone, when I'm actually the buyer looking for an outright victory.

PLus 10 for the BA. I have used it on many occasions and it works very well. I sometimes make it as though there are 2 or 3 clients buying together and 2 agree and 1 doesn't, unless a certain condition is met.. so the REA thinks hes almost there.

I like it too, but does not work too well when you find out you are competing against your real BA, now that's another story

I'm curious... in your masquerading as BAs what happens when an agent asks for your card/requests an email/looks you up on the OFT register....?

And, MTR, are you saying that you've pretended to be a BA when you already have one working on your behalf? Please feel free to enlighten me here, unless I've misinterpreted your post!

 

[LeoT]

I'm curious... in your masquerading as BAs what happens when an agent asks for your card/requests an email/looks you up on the OFT register....?

An agent has never asked me for a card before. If push comes to shove, i'm helping a friend negotiate on a place. I'm his "buyers Agent". If the title was queired then I just act dumb and say well im helping him buy so im the BA.. Theres a million and 1 ways to massage things out.

Another great tactic I use, especially when i meet with agents and its not just over the phone is I tell them im 1 of 2 or 3 partners in this deal. Then I play good cop/bad cop. Me being good, them being bad. In reality its obviously only me. Its worked very well many times.

 

[MTR]

Hi J
sorry, confusing.

I employed a BA about 18 months ago, paid my initial fee $1500, it was a hot market in Perth and I decided that I would also search properties to improve my chances, I continually flicked properties over to him to view.

At 6.00 pm I found what looked like a gem of a property, I phoned him but he was not available, I then contacted the re agent direct and arranged a time to meet him the following day. The agent advised that there was an offer on the table and it was a BA, representing a client in Melbourne, I queried who it was, turned out to be my BA.

I also placed an offer on the table, a couple of counter offers later and I got the deal. To this day he did not know I purchased this property. I checked my contract, unless he sourced the property I had no obligation to pay him a BA fee, a % of the purchase of this property.

MTR

 

[Catalyst]

An agent has never asked me for a card before. If push comes to shove, i'm helping a friend negotiate on a place. I'm his "buyers Agent". If the title was queired then I just act dumb and say well im helping him buy so im the BA.. Theres a million and 1 ways to massage things out.

Another great tactic I use, especially when i meet with agents and its not just over the phone is I tell them im 1 of 2 or 3 partners in this deal. Then I play good cop/bad cop. Me being good, them being bad. In reality its obviously only me. Its worked very well many times.

Sorry, stupid question...

What happens if you tell the truth? That you're looking for IP?

I haven't done this before. Started looking (purely for educational purposes) last weekend.

 

[LeoT]

Sorry, stupid question...

What happens if you tell the truth? That you're looking for IP?

.

Well the part of looking for an IP is always made clear to them. The only question is, how you present this to REAs can have added benefits. Doesnt always pay to tell them the whole "truth". Rarely pays IMO.

IMHO the negotiation game is so important. So much is deteremined from this part of the deal.

 

[Jacque]

Hi J
sorry, confusing.

I employed a BA about 18 months ago, paid my initial fee $1500, it was a hot market in Perth and I decided that I would also search properties to improve my chances, I continually flicked properties over to him to view.

OK - not something you should really need to do, but if this is what you both agreed then fair enough.

At 6.00 pm I found what looked like a gem of a property, I phoned him but he was not available, I then contacted the re agent direct and arranged a time to meet him the following day. The agent advised that there was an offer on the table and it was a BA, representing a client in Melbourne, I queried who it was, turned out to be my BA.

So your BA had another client with the same brief as you? If so, then I wouldn't have engaged him if I were you in the first place. Why should you have to compete with your own BA? It's a question I think all potential purchasers should ask when hiring a buyers agent, as it simply represents a conflict of interest to have a BA working in competition with other clients - each search should be an individual and personalised one.

 

[LeoT]

BTW I have employed Jacques services a long time ago when I was super time poor, and I was very happy. She and Cathy are both top notch.

 

[Jacque]

BTW I have employed Jacques services a long time ago when I was super time poor, and I was very happy. She and Cathy are both top notch.

Well thankyou Leo and I'll take the compliment (and pass onto Cath ) Needless to say I appreciate it greatly (but now I'm going to scratch my head and wonder which client you are- feel free to send me an email to confirm so I can thank the right person at least!) By the way, we must be doing something right as I just won the REINSW Awards for Excellence in the buyers agent category - don't like to boast but I am very chuffed that I beat the boys this year Pity I'm the only one without a photo though, as I was sunning myself on the beach for a family holiday- the award pic itself will have to suffice!!

http://www.reinsw.com.au/2014-Awards-for-Excellence/default.aspx

 

[LeoT]

Well thankyou Leo and I'll take the compliment (and pass onto Cath ) Needless to say I appreciate it greatly (but now I'm going to scratch my head and wonder which client you are- feel free to send me an email to confirm so I can thank the right person at least!) By the way, we must be doing something right as I just won the REINSW Awards for Excellence in the buyers agent category - don't like to boast but I am very chuffed that I beat the boys this year Pity I'm the only one without a photo though, as I was sunning myself on the beach for a family holiday- the award pic itself will have to suffice!!

http://www.reinsw.com.au/2014-Awards-for-Excellence/default.aspx

Yes you guys did a fantastic job. Place has already gone up 170k plus!



I know I saw! Congrats to you! Well done. Now if only i can be in the running for Buyers Agent of the year..:

 

[Catalyst]

Well thankyou Leo and I'll take the compliment (and pass onto Cath ) Needless to say I appreciate it greatly (but now I'm going to scratch my head and wonder which client you are- feel free to send me an email to confirm so I can thank the right person at least!) By the way, we must be doing something right as I just won the REINSW Awards for Excellence in the buyers agent category - don't like to boast but I am very chuffed that I beat the boys this year Pity I'm the only one without a photo though, as I was sunning myself on the beach for a family holiday- the award pic itself will have to suffice!!

http://www.reinsw.com.au/2014-Awards-for-Excellence/default.aspx

Congratulations on winning the award!

 

[neK]

White lies? I just tell the agent what they want to hear.
Whatever picture it then forms in their mind is completely up to them

 

[Deltaberry]

I've never heard that an agent may lie, just like they've never taken a dummy bid at auction.

It's hard to tell if an agent is lying. Dealing with one right now who I suspect is lying.

First she tells me the price is $1.2m, then the next week it's $1.3m, then $1.5m, next thing I know the vendor wants $1.95m and a day later someone has offered $2m because they love the property so much, they'll offer $50k more than the asking price and I need to offer more now to secure it otherwise the vendor is going to sell.

When I don't respond to any calls/messages for 2 days, I get an sms today saying the $2m offer has fallen through because the buyer can't get finance. So I ask her what's the highest offer price now, and she tells me it's $2m.

PS: property been on market 3 months...

 

[Jacque]

It's hard to tell if an agent is lying. Dealing with one right now who I suspect is lying.

First she tells me the price is $1.2m, then the next week it's $1.3m, then $1.5m, next thing I know the vendor wants $1.95m and a day later someone has offered $2m because they love the property so much, they'll offer $50k more than the asking price and I need to offer more now to secure it otherwise the vendor is going to sell.

When I don't respond to any calls/messages for 2 days, I get an sms today saying the $2m offer has fallen through because the buyer can't get finance. So I ask her what's the highest offer price now, and she tells me it's $2m.

PS: property been on market 3 months...

Ah the old "finance fell through" card.... if you buy sufficient properties you get to know the old chestnuts that some agents aren't creative enough not to re-use Having said that, it can be challenging to identify honesty from imagination. I ask lots of questions about the other offers, so I can verify the who/where/circumstances etc and also find it useful to keep records of dates, conversations etc where necessary. Asking other agents in the same office (or PAs) can sometimes uncover two different stories too. Lots of ways to skin a cat but most of the time the benefit of the doubt needs to be given, as (like any lie) the truth can be hard to verify. Unfortunately, in a sellers market like the one we're experiencing here in Syd right now, most of the agents have no need to lie about delusional offers, as there's buyers lining up for most median priced stock.....

 

[Deltaberry]

Ah the old "finance fell through" card.... if you buy sufficient properties you get to know the old chestnuts that some agents aren't creative enough not to re-use Having said that, it can be challenging to identify honesty from imagination. I ask lots of questions about the other offers, so I can verify the who/where/circumstances etc and also find it useful to keep records of dates, conversations etc where necessary. Asking other agents in the same office (or PAs) can sometimes uncover two different stories too. Lots of ways to skin a cat but most of the time the benefit of the doubt needs to be given, as (like any lie) the truth can be hard to verify. Unfortunately, in a sellers market like the one we're experiencing here in Syd right now, most of the agents have no need to lie about delusional offers, as there's buyers lining up for most median priced stock.....

That's true too, hence the point about it being around for 3 months. If someone was going to pay that price, they would've paid it a long time ago.

 

[westminster]

It's hard to tell if an agent is lying. Dealing with one right now who I suspect is lying.

First she tells me the price is $1.2m, then the next week it's $1.3m, then $1.5m, next thing I know the vendor wants $1.95m and a day later someone has offered $2m because they love the property so much, they'll offer $50k more than the asking price and I need to offer more now to secure it otherwise the vendor is going to sell.

When I don't respond to any calls/messages for 2 days, I get an sms today saying the $2m offer has fallen through because the buyer can't get finance. So I ask her what's the highest offer price now, and she tells me it's $2m.

PS: property been on market 3 months...

That would annoy the **** out of me. Are you going to offer what you think it's worth or just leave it awhile longer