My bidding war!

[buzzlightyear]

This is what I hate about private sales. You are reliant totally on the REA telling you the whole picture or provide you with complete information on where the bids are.

At least at auctions you know who is bidding and how much. Long live auctions.

 

[dupli]

Nikolina
If they were genuine bids then the agent should have kept going because his job is to secure as high price as possible...

No, I am fairly sure this is a genuine technique, it makes sense if you think of it from the vendors perspective, this is how I assumed it worked in this situation:

REA tells all interested parties they have a chance to all put in one final bid, no further bids will be accepted.

This means each potential buyer can not play games and try to bid a lower price than they think its worth, each potential buyer instead has to bid the maximum amount they are willing to pay for the property.

By forcing all interested buys make their bid the maximum they are willing to pay for the property you could end up selling it for more than you would have otherwise.

I am thinking this is a good technique and is one that I would want my REA to use if I ever sell.

 

[twobobsworth]

At least at auctions you know who is bidding and how much. Long live auctions.

Yep, I've always been amazed at how many plants place bids.

 

[buzzlightyear]

Yep, I've always been amazed at how many plants place bids.

But at least you know how much they are bidding

 

[jaycee]

impossible. Will Try And Get The Section Of The Act.

Roflmao...

 

[geoffw]

I guess i learn't my lesson. I'll know for next time! Plenty more properties out their...

Welcome to the learning game.

The more you do, the better you get.

Well done for moving on.

 

[Nikolina]

Nikolina
If they were genuine bids then the agent should have kept going because his job is to secure as high price as possible.
However, he didn't get back to you so it could be that for whatever reason he wanted to sell the proerty to someone else (a mate of his perhaps?)
I think it's worth complaining to the manager because it could be a case of a dodgy deal.

I agree VB. Put it this way, if i was allowed to make another bid i would have.. It was hard because like mentioned atleast at auctions you know what the bids are.

 

[Piston Broke]

Impossible. Will try and get the Section of the act.

Either your conveyencer is a lawyer and knows sumthin all the others dont, or your both too full of yourselves.
And the vendor is free to take whatever offers they please and sell to whoever they want even if they aint the highest bidder.
Learn how to deal with REAs I'd suggest.
There's plenty posts about it round here.

 

[tez]

I agree VB. Put it this way, if i was allowed to make another bid i would have.. It was hard because like mentioned atleast at auctions you know what the bids are.

You mentioned the property was undervalued and with reno's would attract high rental return, CG etc. You also mentioned you would have put another offer in if given the chance. With properties like this, other would also be able to see the value in it, so just put in your highest offer and be done with it.

Sometimes it does get to you. Ive been to a number of the "property launches" where everyone turns up on the day and submits their highest offer, which is sort of like a auction but not. Hate them with a passion.

 

[BayView]

So today i went and had a look at an IP i was highly interested in. The property required alot of work, including new kitchen, new bathroom, new laundry, new flooring all round, new gutering, alot of drainage work, exterior needed to be properly rendered - shocking doggy job and the list goes on.....

It was on the market verry undervalued for obvious reasons at 320k. After inspecting it i put an offer in of 310k. I was told a higher offer was made, i then put in offer of 315k, again higher offer made, i then put in 319k - was told at this point my offer was the highest and it would be put to the owners....

I got a call back from the REA saying that another 4th party has since come into play and put an offer in, and i now get one last shot at putting an offer in as do the other interested buyers, the party with the highest offer would get the property. I offered 330k. I got a call back from REA saying that another party had put in a higher offer and i missed out.

Now i am ANGRY!!! For an agent to do this it is illegal! It was an bidding war going on for most of the morning and hence in this situation the house should have gone to auction....

Would you report the agent?

The house had massive potenital, and after renos would have given me an instant high CG, not to mention the FANTASTIC rental return!

Nika.

You have let emotions factor into a business decision.

And, it is not illegal for the agent to keep playing phone auctions. He/she is paid by the Vendor to get the highest price for the property.

My second PPoR started off as a block of land, which was being sold cheaper because the owner had been injured and needed to offload it. It was originally $69k, but was now for sale for $60k. It was decent value at this price.

I went and talked with the agent as an enquiry only, and ended up and said I'd buy it, but couldn't pay any money at that time, so would come back the next day with a cheque.

Next day, the agent calls me and says there is another interested party who were going to offer more, and I'd have most likely have to put in a higher offer.

Being the King of scepticism, I thought there was probably no other party at all, and he was just trying to get me to pay more.

So I nicely said; "If someone else wants to pay more than $60k for it they are welcome to it. My offer is still $60k."

And left him with that. Trying to call his bluff - if it was one. I was taking a gamble, but was prepared to not get it.

I heard nothing for about a week, then he called back again and said the property was mine because the other parties' fianance fell over. I got lucky - he could have been telling the truth about the other party, but most likely wasn't I'd say. Just tryin' it on.

Good on him too - I'd want this guy selling my place.

So, you need to decide what you are willing to pay, and don't let the agent talk you into playing by their rules.

 

[chrispy]

So what you are saying is...a final offer is not a final offer????

I have made offers to agents saying, I will only be giving one offer, if its not accepted thats it. I work out what I will pay, make the offer and either its accepted or I move on.

When I am selling I am not interested in purchasers trying to get my property for less than the value. I work out with the agent the value and its sold for that or not at all.

Take the emotion out of the transactions. This is a business not a game.

Chris

 

[Rob Williams]

This is a business not a game.

Chris

Wish I'd known that going in. I've been having a ball so far, so I figured it must be a game. Business can't be this much fun. Can it?

 

[Piston Broke]

Wish I'd known that going in. I've been having a ball so far, so I figured it must be a game. Business can't be this much fun. Can it?

Looks like your starting to get the hang of it!!!
Serious Fun!!

 

[marg4000]

I really can't see what you are complaining about Nikolina.

You were given the chance to put in your best and final offer which you did.

The fact that someone else, who was given exactly the same opportunity, offered more is simply bad luck for you, but probably good luck for the vendor.

Where is any illegality?

Sometimes you only get one chance at a great deal.
Marg

 

[Perp]

it makes sense if you think of it from the vendors perspective, this is how I assumed it worked in this situation:

REA tells all interested parties they have a chance to all put in one final bid, no further bids will be accepted.

This means each potential buyer can not play games and try to bid a lower price than they think its worth, each potential buyer instead has to bid the maximum amount they are willing to pay for the property.

Precisely.

If they were genuine bids then the agent should have kept going because his job is to secure as high price as possible.

No, he shouldn't have, because he stuck to his word that prospective buyers should submit their "best and final offer", and then one would be selected. If the buyers had a hint that they'd get a chance to make further offers, then there's no incentive for them to make their best offer the first time around, and the strategy doesn't work in the vendors' interests.

If the REA told you you had to put in your last and final offer, why would you be upset if you were outbid?

if i was allowed to make another bid i would have..

So what you are saying is...a final offer is not a final offer????

You wanted to play games, the agent and vendor didn't.

This is the crux of the matter. Nikolina either didn't understand what "best and final offer" means, or got her strategy wrong, and now wants to blame somebody else.

I know it's disappointing, Nikolina, but it seems like everybody else was playing it straight whilst you were being deceptive - submitting an offer as your "best and final", which wasn't in fact your "best and final". The agent and vendor had the integrity to stick with what they said they were going to do. They should be applauded!

 

[battler]

I got a call back from the REA saying that another 4th party has since come into play and put an offer in, and i now get one last shot at putting an offer in as do the other interested buyers, the party with the highest offer would get the property. I offered 330k. I got a call back from REA saying that another party had put in a higher offer and i missed out.

It doesn't make sense to me that the Agent with 4 hot buyers would limit it to one last shot.

The selling agent is doing his best for the vendor to get the highest price.

But the Agent may have been able to get more if he had allowed more offers ie if Nikolina topped the previous highest offer that she wasn't allowed to do.

 

[buzzlightyear]

It doesn't make sense to me that the Agent with 4 hot buyers would limit it to one last shot...

We (nor Nikolina) has any information relating to the vendor about their desire to complete the sale. It is quite feasible that they wanted to complete the sale and settle as quickly as possible because they have bought elsewhere and needed the money or wanted a 30 day settlement to ensure they have a reduced land tax liability for 2010. Who knows really.

As others have said, if you want the property and when the REA says its your time to play, you need to bring your A game.

 

[Nikolina]

Precisely.

No, he shouldn't have, because he stuck to his word that prospective buyers should submit their "best and final offer", and then one would be selected. If the buyers had a hint that they'd get a chance to make further offers, then there's no incentive for them to make their best offer the first time around, and the strategy doesn't work in the vendors' interests.

This is the crux of the matter. Nikolina either didn't understand what "best and final offer" means, or got her strategy wrong, and now wants to blame somebody else.

I know it's disappointing, Nikolina, but it seems like everybody else was playing it straight whilst you were being deceptive - submitting an offer as your "best and final", which wasn't in fact your "best and final". The agent and vendor had the integrity to stick with what they said they were going to do. They should be applauded!

I do understand what best and final offer is however, if it had gone to auction i would have known what the other bids were. I could have paid up to 400k on the property if i had wanted to but, why would i have put in 400k offer as best and final offer if bidder 1,2 or 3 best and final offer was only say 330k? Ive just screwed myself over with 70k.

 

[HomeBuyAU]

I think you might be taking this business too seriously, relax, WARS are when people get killed. I'm sure you will find something again soon so don't let it get you down, just move on, like it sounds like you are now doing and learn from the experience.

 

[Nikolina]

It doesn't make sense to me that the Agent with 4 hot buyers would limit it to one last shot.


But the Agent may have been able to get more if he had allowed more offers ie if Nikolina topped the previous highest offer that she wasn't allowed to do.

I would have topped it without even having to think twice about it, but with inceases of say 5k. That way i would have had some gist of what that offer was.