Misleading Property Advertising

[CIS]

Hi all,

I went to an OFI today and really liked the property.

The advert did not say a price range or expressions of interest nor did it say offers above etc. it simply advertised the property as "private sale" with a price of 500k.

I advised that I would like to purchase the property that moment and had the deposit ready, however I was advised by the agent that he was just getting interested parties to place offers and would give them to the vendor to decide. He then said that he was going to receive offers and then arrange a board room auction for interested parties.

Just putting it out there, is this even legal or has any one experienced anything like this before? It seems awfully dodgy and wasted plenty of people's time if this is the case.

Cheers.

 

[Terry_w]

Why do you think it would be illegal? And why wasting time?

You can make an offer and the vendor can either accept it, reject it or think about it...

 

[CIS]

Why do you think it would be illegal? And why wasting time?

You can make an offer and the vendor can either accept it, reject it or think about it...

Well, I thought that it wasted my time, with respect to thinking the vendor was selling at that price and making an effort to look at the place.

Thinking about the illegal comment, maybe not so, more in terms of misleading.

That's all.

Not a big fan of auctions but I believe this property would end up as an auction, so why not just advertise it that way?

 

[pinkboy]

Everything is for sale if the right price comes along!

Why would this be no different? This smells of 'tender' firsthand, which is a style of selling - not sure why you think there is anything illegal or off about the method.

pinkboy.

 

[Jake Milne]

Private auctions are common practice and many agent use this as their preferred selling method when there are multiple offers on the table.

The benefit for you is that there is a clear and transparent environment to purchase the property. It's much easier to bid in an intimate environment than it is to make a private offer against multiple parties.

 

[S.T]

Just to clarify, is a 'board room auction' where bidders, or those that have already made offers, come a long and big against each other in the intimate surroundings of a boardroom? All bids are in the open?

 

[sanj]

Hi all,

I went to an OFI today and really liked the property.

The advert did not say a price range or expressions of interest nor did it say offers above etc. it simply advertised the property as "private sale" with a price of 500k.

I advised that I would like to purchase the property that moment and had the deposit ready, however I was advised by the agent that he was just getting interested parties to place offers and would give them to the vendor to decide. He then said that he was going to receive offers and then arrange a board room auction for interested parties.

Just putting it out there, is this even legal or has any one experienced anything like this before? It seems awfully dodgy and wasted plenty of people's time if this is the case.

Cheers.

I only have 1 question, when it comes to selling next time, will you have the same view?If you were asking $500k and someone is willing to pay it but the agent thinks he can get you $510k will you tell him you dont want the extra $10k?

 

[Jake Milne]

Just to clarify, is a 'board room auction' where bidders, or those that have already made offers, come a long and big against each other in the intimate surroundings of a boardroom? All bids are in the open?

That's correct... essentially it will be the qualified buyers in either the property that is being sold or in the REA's boardroom at their office. It is the same as a normal auction but just in a more intimate environment.

 

[S.T]

Sounds good, hopefully drinks and nibbles are provided and you can still wear your tracksuit.

 

[CIS]

Just to clarify, is a 'board room auction' where bidders, or those that have already made offers, come a long and big against each other in the intimate surroundings of a boardroom? All bids are in the open?

I believe so, that's what the agent said.

I guess this is my point. Why not just advertise it as an auction?

Anyway, the advert has been amended now and is advertised as a private sale, no dollar value.

 

[CIS]

I only have 1 question, when it comes to selling next time, will you have the same view?If you were asking $500k and someone is willing to pay it but the agent thinks he can get you $510k will you tell him you dont want the extra $10k?

Well, I just sold my PPOR and provided my agent with the reserve.

It was sold as "expressions of interest" with a price range and a close out date.

All offers we're submitted to me and I made the decision to sell prior to the date.

All good.

Never would I advertise a fixed price and advise my agent to "just see the response to the OFI" and then explain to the potential buyers that the price isn't what's being requested from the vendor.

Just get them to make offers so they can play each other off in a board room auction.

IMO, I'd just have an auction.

 

[sanj]

I guess this is my point. Why not just advertise it as an auction?

.

because it isnt an auction where everyone has to bid under the same conditions

 

[Big Will]

I only have 1 question, when it comes to selling next time, will you have the same view?If you were asking $500k and someone is willing to pay it but the agent thinks he can get you $510k will you tell him you dont want the extra $10k?

Following on from what sanj said, what if they advertised it at $500,000 and there is 30 people came through the open house and 5 people want to put offers in, wouldn't you want to perhaps change the method of sale.

What about reverse situation it was up for auction and was passed in, should the vendor be forced to sell? I have see at times where a property goes up for sale gets a good price and then the vendor decides they do not want to sell, is that something wrong? The REA would still get their commission as they performed their duty of finding a buyer for the property however people can always change their mind until a contract is binding (even then people still change their minds).