Make an exact offer instructed by seller agent

[mingling]

Dear All,

There is a house which advertises from early to mid 200K at internet. (sorry can not review the detail now.)

I called the agent to fax the contract so that I can make the offer.

This is on 22/12/2007 Sat am, we make the first offer with 238K and faxed over to him and called the agent. feedback from him the offer is too low. He said the offer has to be above 250K.

We revised and faxed over the offer @ 255K and called the agent again.
Again rejected instantly over the phone due to the offer is too low.
I asked him for figure as we really want to buy this house. The agent asked me to put 261K exactly. We did and faxed over to him. Called him and updated him the offer is 261K. He told me that he will receive the fax from the office. (he already left the office)

I did not call him on Sunday,23/12/2007 as I had SMS - Short Message Service or text messaging to his HP on Sat night. I just want to make sure that he has registered in his mind that i have make an offer of 261K as instructed.

On 24/12/2007 Mon, I called the agent again to get the status. He said he will only know the answer by this Thur as there is house viewing on Thur 27 Dec 2007. asked me whether I have anyone there to view the house and I told him 'no'. (again bought from internet.)
From the conversation with him on the phone, gathered that this is the first time that the agent deals with oversea client like me. From his tone,I get the feeling that he feels very uncomfortable with oversea finance though i have ensure him that this is NOT my first purchase, have done 2 at Mel this year. I even get my hubby to explain to him pertaining to finance subject. We even go to the extent that we strickout the condition ie subject to finance.

on 25/12/2007, did not call him.

on 26/12/2007, did not call him.

on 27/12/2007 called him for status. I called the agent again to get the status. He did not want to give me 'yes' or 'no' answer to our deal. He said he just left the house (open hse) and nothing has decided.

I asked him how do I proceed from here ?? In view of do not want him to pay for the oversea phone bill , I asked him can I call him again to get the status.
He replied 'NO' and he will call me for the news.

28/12/2007, what should I do ???

Need your opinion what should I do now ?? What is happening here ??

Your advice is much appreciated.

thanks all for your attention.

 

[bradje]

Hi Ming,
Sounds to me like this agent is not being honest with you and you may end up paying too much for this property. (eg they did not pass on your offers to the client (which they are supposed to do), but made a reply immediately over the phone).
Can u call his office and describe what has happened and see if the Principal of the office can assist you?
Or perhaps just move on to another property and leave this one alone.....
Cheers,
JB

 

[mingling]

Hi JB,

The property is advertised from low to mid 200K.
I am only expecting the max of 250K.

No, all those offer of 238K, 255K and 261K are make w/o presenting to the seller. He kept mention he has to take care of his vendor.

I am a genuine buyer and really want the deal and here he is ...not sure what he is doing. Used me as a benchmark for local to offer ??

I will wait for another day, 28/12/2007. since he said he will call me for the outcome. Not sure by calling/contacting the Principal of the office will jeopardize my situation ?? what do you think ? thanks

 

[bradje]

If it was me I would not proceed as I smell a rat. He is not dealing honestly with you and so you may be in for a few surprises if you proceed.

Personally, I would walk away from this one. As they say, "The deal of the century comes around once a week". There will be another property coming up soon.
Cheers,
JB

 

[Jontxu]

Demand a better service

Hi Mingling

The agent is clearly “conditioning” you so he can get more $$$ off you. Agents do it all the time. I have seen this happen over the years.

Being overseas does not help much, however in your situation I would have demanded a print out of the latest sales in the area, for REAL comparables. You are buying a $250K investment!, not an Ipod… any decent agent would give you comparable sales info, etc. Demand a better service from the agency, call the principal if necessary. Walk away if they are not helping you out.

Do you know how much comparable properties are selling for? And if your answer is yes, stick to a price and don’t go any further.

Stay put and don’t offer a cent more until you know the “real value” for this property.

Happy Investing
Jon Salvador
www.headinghome.com.au
For investors … from investors

 

[BayView]

Hi Mingling,

You don't need to buy this particular house, but the owner sure wants to sell it. You control the transaction here; not the agent, not the Vendor.

This is a business, and your decisions should be totally number based. No emotion.

What do you think the property is worth?

Have you looked at recent sales that are in the same area for comparison?

As an investor, you need to be objective and don't waste your time and/or theirs.

Put in one offer, based on the value you think the property is worth, then leave it with the agent.

If the price is too low, walk away and look for the next "deal of the century". It is in the next real estate office probably.

Send him an email or text message NOW saying that you are pulling out of the negotiations to look at "other opportunities".

If he has been telling lies up until now, you can bet your other 2 properties that he will be in contact within 24 hours. Probably within the hour.

When he does, you can say that your latest offer/s are now "off the table" and your original offer is all you are prepared to pay.

magnificent.

 

[steveadl]

I think the price being offered is fair, but the agent is trolling for higher offers elsewhere before he gives in to Ming - and in the current market, he may even get a higher bid. He probably also think's it's more hassle selling to an OS investor than Mr Smith down the road.

There are definitely more fish in the sea, this one isn't the be all and end all.

 

[Dazz]

Need your opinion what should I do now ?? What is happening here ??

Your advice is much appreciated.

Mingling,

The only thing you can do after all that is sit down, relax, have a cup of herbal tea and forget the property.

That is without a doubt the weakest negotiating position I have ever heard someone putting themselves in when trying to purchase a property. The Agent is in absolute and complete control and given what's transpired....no matter how "tough" you appear from now on.

My only suggestion is to cancel your written offer immediately and book in for a negotiation course.

Vendor's and their Agents dream of Buyers doing that.....I didn't think it actually happened though.

 

[steveadl]

True Daz, but the offer of $238k would never have got it, and even $255k would be doubtful (IMO), or if achieved then I would consider it a pretty good buy. You usually can come in with a low ball offer and work from there, but it's not as easy in the current market. Sure it can still be done, but at the moment the agents are just as likely to walk away and sell it to someone else.

I agree however that in this case it looks like the REA is pushing Ming for the higher price pehaps in abscence of any other buyers. I'd move onto the next property as you have all mentioned.

 

[Harris]

I agree with Daz that its a very poor way of negotiation and the agent is trying to play you against other buyers - You are just there as the agent's fall back position and he is trying to see if he can cut the amount of paperwork involved with selling someone overseas (faxing/ finance worries etc).

He would be disclosing your offer to to other prospective buyers and advising them to go higher than your offer.

Whilst you might have your heart set on the property, you are buying site unseen, without building/ pest inspections and without having anyone on the ground to look at the prop or negotiate on your behalf.

I would instruct the agent that the offer would expire in 6 hours and that you need a faxed contract back and that you are not prepared to play this game with him anymore.

This is your transaction and you need to take control. Dont show your desperation or you would be taken for a ride.

Harris

 

[VYBerlinaV8]

Send a fax to the agent's office marked 'ATTENTION PRINCIPAL'. Advise them that you have made 3 written offers on a property marketed by them as 200-250k. In at least 2 instances you have had such a quick reply that you don't believe the offer was presented to the seller. Also advise that you think the seller not accepting an offer of 261 despite the advertised range is misleading. Ask the principle to specifically respond in writing including the words 'so I have a formal response for my records'.

See what happens. Many agents are dogs, really, and there'll be plenty more properties. I wouldn't be making a higher offer, though. This is just the usual games, so don't fall for it.

 

[BayView]

VY;

Surely you're not suggesting that the agents have underquoted...again!?

That doesn't happen any more. The REIA said so.

 

[Bushy]

Mingling,

Have you considered using a buyers agent to source a property for you, might be cheaper in the long run and at least they will be taken seriously.

Regards Bushy

 

[mingling]

Agent did not call

Dear All,

Thanks for your opinion and feedback. You are right about this agent.

28/12/2007 - agent did not call

29/12/2007 - Half day gone, again agent has not call me yet.

I have decided not to call him again and has proceed to make another offer to another property. thanks all for your advice.

About the BA, I had bad experience once. This BA that we engaged physically not at the area where I bought the IP. She parroted to me whatever the seller agent told her. There is no RP report....and when the PM took over the property for rental, there are discrepancy pop out. eg there is no 2 bathrooms, only 1 bathroom and 1 toilet. The weekly rental is not 340/week only 300/week. ......There is no value added.

Will keep all posted again whenever there is any update.

Wish every one has a Prosperous and Healthy New Year.

cheers,
Ming

 

[VYBerlinaV8]

VY;

Surely you're not suggesting that the agents have underquoted...again!?

That doesn't happen any more. The REIA said so.

Looks like another opportunity for me to have a giggle at myself... It happens a lot!