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.