Made three offers - no word from agent - what's up?

propoz

propoz

Hello,

Bit of a newb when purchasing property. Been looking for a new PPOR. Found property that ticks the boxes. Saw something similar but not as suitable a few months back advertised with same RE agency. Built up rapport with an agent there and have been dealing with him regarding the current property although the listing is actually with another colleage in his office.

The current property had separate relocatable dwelling when first advertised (has since been sold off). Prop on market around over six months, owner relocated/relatives living in it until it sells.

Put in lowball verbal offer and have since upped a couple of times. Consider most recent offer to be fair (comparable sales, separate dwelling being sold off, etc). Agent suggests signed contract to show seller we're serious. Have left the verbal offer on table - will proceed if seller accepts offer.

No word from agent in a week. Friend rang the agent's colleage in charge of the listing to get fresh perspective. Agent told friend there had been an offer (quoted our lowest offer only, did not mention subsequent or recent highest offer).

Is there any reason the agent we have dealt with would not pass our higher verbal offers onto seller?

Welcome thoughts on signing contract - whether it makes any difference to verbal offer.

Hate the cat and mouse games!
 
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Why not put the offer in writing if you want the property?

Unless there's anything in writing, the agent really has nothing to show the vendor. A verbal offer has no weight.
 
Hey there Lil Skater,

Did not want to risk written offer being used to bait any other interested parties to start price war (probably far fetched as its been on market a while) - just being cautious as hear many horror tales.

Thought the agent would at least let the seller know about the offer. Seems strange not to have heard anything in a week.
 
Understand completely. It's not fun if you feel like you're being played, but in an instance like this I'd say biting the bullet is the only thing you can really do.

He may have told the vendor about the verbal offer, however if there's nothing in writing, there's nothing there.

As an agent I'd be reluctant to "present an offer" as there technically isn't one, and as a vendor I'd probably be telling my agent to sod off unless they can give me something that shows there's actually a purchaser interested.
 
Put the offer in writing... If you've offered verbally, had a counter and then haven't followed up with a written offer the REA probably thinks you're a time waster.
 
I work as a REA, and it is my policy and the companies policy that no offers will be taken from verbal or emails.

Why is that? [RANT]

They mean nothing and I have seen REA who use fake email address (hotmail/gmail) to show the vendor they have an offer of $50k below what they are wanting to 'condition' the vendor in dropping their prices or find a price that the vendor is willing to accept.

Example of how it can work:

Asking price $700k

Fake email/fake verbal or even real email/verbal: Offers $600k

Vendor says: I'll take 680k

Now the REA knows they are willing to accept 680k and there might be no offer... Further lets say yes I will accept the 600k (for whatever reason), if it is a fake the REA will make up some excuse (bought another, didnt like the building report) However again now the REA knows the vendor will take $600k (not likely going to for $100k less but think about if it was 30k below? What the REA is doing is just baiting for the lowest price the vendor will take, however with the system I/company uses it means you actually have someone there and they have paid an inital deposit.

Also if you have a serious buyer, getting an offer signed and put in front of the vendor shows you actually have someone who is interested and is not made up.

Yes I get asked if the vendor is willing to accept $150k below what the market is saying and I will always put it back that I highly doubt the vendor will accept the figure you are offering and I would advise to put a higher offer if you are hoping to negotiate in the future but if you still wish to complete one even though it most likely will be wasting your time I am happy to do it. If you annoy the vendor it makes it hard to negotiate, as they will always be thinking this person is just trying to rip me off (people yourself in their shoes)

[END RANT]
 
propoz said:
Did not want to risk written offer being used to bait any other interested parties to start price war (probably far fetched as its been on market a while) - just being cautious as hear many horror tales.
Click to expand...

Why not put the offer on a contract and put a time limit on it to minimise the agent being able to use it to get other offers up higher.
 
wylie said:
Why not put the offer on a contract and put a time limit on it to minimise the agent being able to use it to get other offers up higher.
Click to expand...

Agree with Wylie.

Submit a written offer to the agent and the vendors solicitor in the morning with an end of day sunset clause.

You must be ready to walk away if your offer is not met and clearly state that in the offer.
 
Agree with Wylie.

The number of people who make verbal offers on our properties, and then refuse to sign even a letter of offer (not even on a contract yet) is staggering. They might be testing the waters on their second option, before buying another property, or they might be using the verbal agreement as leverage elsewhere.

If you are willing to sign a contract on your preferred terms, then you become a serious buyer. Until that point, an agent can't really tell the difference between you (a serious buyer) and the next person (a tyre-kicker).

Also - the agent WILL be using your verbal offer as leverage on anyone else who enquires on that property. ("well Mr Smith, I do have a very interested person who has offered $900K") Putting it in writing won't really change that, but will give you a better chance of the seller signing.

Matt
 
Hi everyone,

Thanks for all comments and suggestions. Certainly helps to see things from a variety of perspectives. :D
 
chilliblue said:
Agree with Wylie.

Submit a written offer to the agent and the vendors solicitor in the morning with an end of day sunset clause.

You must be ready to walk away if your offer is not met and clearly state that in the offer.
Click to expand...

Yep I like (as a buyer and a seller) to give or receive an offer on a contract and with a deposit cheque. Some negotiating can be done prior(as seems to have already happened) but when it gets real you need to put up or shut up and a contract with a fat deposit is the best way(short of a cash offer!). Put as many terms and conditions in as you like, make them negotiate them out, each time they ask to have one removed, ask for another price reduction or some other concession on their part. Use the sunset to put a time pressure on the vendor and reduce risk of being used as bait for other offers.

In the end if they dont come down enough you can always walk and if you get gazumped there will be another property out there. Try to relax and have fun with it and use as a learning exercise whatever the outcome.
 
Propoz,

Congrats on finding a property you would like to purchase.

My suggested course of action

1) go into office and meet the listing agent (not the one who you feel you have a good rapport with, if he's not getting back to you, he is not interested in closing a sale - AGENTS hungry for deals are the ones who will get deals done for you and work vendors to your advantage)
2) find out if the owners are ready to sell and are serious about getting it sold and if so, when could the agent present an offer to them and would it be in person or over the phone.
3) ask him how long does it usually take for the owners to get back to him, because you have an auction you want to attend this weekend coming, in the event you cannot secure this property
4) go into the office and put in the first low ball offer you originally gave to (not good) agent. (the listing agent obviously doesn't know about your subsequent offers)
5) Do NOT counter your own offer, always ask for a counter offer before upping your own offered price and if the agent/vendors will not give you an exact figure, at least get a ball park figure. If you do not do this, you can end up paying more than you need or bc they are just asking for more and you are giving it to them, I would milk that (and have done) as a vendor - so don't do it.
6) put your offer in writing in the afternoon, tell him you want to get the deal done ASAP and the offer expires 10am the next morning

If they don't play ball, move on, no one is really serious about selling the place, and you cannot buy something that someone isn't committed to selling


Good luck. Let us know how you go!
 
From your first post it appears you have put in quite a few lowball offers and them raised them a couple of times.

I would suggest that the agent has no idea if
(a) you are serious at all, or
(b) this latest offer is just one in a string of them and if he/she waits a bit you will raise it.

If you want to be taken seriously then put in a formal offer in writing in whatever form is the norm for your state. In Qld that would be a signed contract with a deposit cheque. If you want you can limit the offer for a certain time.
Marg
 
+1 for all the people who have told you to put a written offer in. You say you hate cat and mouse games, but you are the one playing them.

Put an offer in writing. The agent doesnt work for you, they work for the seller.
If your offer is crap and verbal, you are not going to be taken seriously.

Everyone seems to be telling you the same thing?
 
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