Nagotiate price increase AFTER buyer has signed contract?

[Bargain Hunter]

I thought he was working for us not against us.

Think again. They neither work for you or against you. REA work for the benefit it brings to themselves and they will squeeze either the buyer or the seller in order to make the sale. It comes down to who is more desperate to close the deal.

The only benefit of an agent IMO is that they get the property in front of people and you don't have to be there to show the property. Some people like to have someone act as a middle man but honestly I don't think most buyers could be as pushy as a REA when it comes to closing the deal.

regards

Andrew

 

[Fudge]

We had it on the market with only 1 agent (The one who had only made 5 sales in a few months)and they I think only showed about 1 or 2 lots through. In the last 2 weeks we have gone with another 2 agents, both of which have been proactive in showing people through, I would say at least 4 or 5 lots have been through with the one agent just over the last weekend. The one contract that we have had was through the original agent.

IF nothing happens in the next few weeks, we will probably take it off the market for a couple of months and see what happens, the tenants lease runs out on the 18th of Feb, so might leave it empty and see if it's easier to sell with out a tenant in place (It's a holiday area) so people might buy to have it as a holiday rental.

Only Time will tell.

I do appreciate everyone's advise... Hope you all have a great new year!

I thought you said that you don't want to be desperate.

Why market it through 3 agents.

As Ozperp says:

The agent's pushing you to accept the "low" offer because he thinks he's going to have trouble getting a better one. Yes, I know that agents prefer a sale at "almost any price" rather than the property left on the market, but given that you've had it on the market for some time, at a reasonable time of year for selling and in an increasingly optimistic market, and have marketed at both $310K and $299K and the best offer you can get is $275K...

If not urgent for a sale, take it off the market. In an appreciating market when you list it in 6 months or a years time, the house should appreciate in value.

Why not rent it out for a short 6 months, or get it managed through a holiday letting place if you say it is in a holiday area. Any additional money is better than zilch.

And that way, you can try the market in 6 months - 1 years time.

Cheers,

F

 

[MissMuffitt]

Out with the old... In with the new!

The negotiation with the original people stalled, so we ended it today as the RE told me that they are going to put an offer on another property tomorrow .
Well we now have some new people interested (different RE) and they are happy with the $295,000.
Anyway, just wanted to let you all know that it's looking good for the sale that we wanted...

 

[Fudge]

The negotiation with the original people stalled, so we ended it today as the RE told me that they are going to put an offer on another property tomorrow .
Well we now have some new people interested (different RE) and they are happy with the $295,000.
Anyway, just wanted to let you all know that it's looking good for the sale that we wanted...

OK good to hear.
Just don't pop the cork until the contract has been executed.

Good luck,

F

 

[MissMuffitt]

Signed contract WooHoo!

Signed the contract yesterday, Settlement in 35days.... Got our $295,000. These people did not even try to get us any further down, they want the unit!
So the "Market Spoke" and said... $295,000 not $275,000.
I guess the "Market was hot" for our unit after all, had another interested person with another agent at the same RE but he was too slow.

Anyway... I am very happy... Just had to share!!!

 

[wylie]

It's nice to hear it had good ending. Well done!!

 

[Uncle Perce]

Congrat 's Miss Muffett !

Well Done !
You must feel pretty good ! You hung in there and had faith for
what it was worth and got it .
It can be very easy to listen to what agents are telling you
when they say "just take the offer or youll miss out"
even when u know its worth more .
Good work !

 

[Fudge]

Top Stuff MissMuffet,

Well done.

Now you can pop the cork.

Cheers,

F

 

[MissMuffitt]

Top Stuff MissMuffet,

Well done.

Now you can pop the cork.

Cheers,

F

Thanks for your good wishes, but we won't celebrate until settlement day. Don't want to jump the gun!

So now we are down to 1 IP, our former PPoR in Gladstone.

Will regroup for 12 months or so, save some money and have another look at this IP game then. I am thinking about a set of Duplex or Triplex. But that is my idea now, who knows where my head will be in 12 months time

 

[Fudge]

Thanks for your good wishes, but we won't celebrate until settlement day. Don't want to jump the gun!

So now we are down to 1 IP, our former PPoR in Gladstone.

Will regroup for 12 months or so, save some money and have another look at this IP game then. I am thinking about a set of Duplex or Triplex. But that is my idea now, who knows where my head will be in 12 months time

OK...... Good point.

Hold out for another month or so.

Provided that nothing comes up in their building and pest report, and their finance gets over the mark, and they have gone passed the cooling off period (if they have one....don't know which state), then you should be pretty safe!!

Keep us informed.

Cheers,

F

 

[MissMuffitt]

Coming out of the wood work!

Boy Oh Boy..... talk about strange situations.
We have not heard anything from the first RE since he told me on the 7th that the people would not meet our price and were going to but an offer on another place the next day. I said... ok, thanks for letting me know, better luck next time.
I thought nothing more about them, and we now have a contract for the $295,000 we wanted.
Tonight, I get a message from the 1st agent. "Congratulations, the people signed at $295,000"
this is 7 days after the original offer of $290,000 expired, and they went to make an offer on another property.
There has been NO communications with us from them about the people still being interested... and now they just say "Here it is"....

What are peoples opinions on this...

 

[skater]

I would have to say that the first people who signed the contract for the higher amount have the place. In fact, you should have exchanged contracts by now, shouldn't you?

 

[MissMuffitt]

I would have to say that the first people who signed the contract for the higher amount have the place. In fact, you should have exchanged contracts by now, shouldn't you?

We exchanged signed contract with the people(2nd RE) who offered $295,000 on Sunday, it goes unconditions on the 31st Jan or the 1st of Feb.

BUT the 1st RE sent the message yesterday that the original people (after a week of no communications) had decided to come up to the price we wanted, and signed the contract for $295,000 this is after I had said the negotiations were at an end on the 7th Jan.
Anyway, I sent the 1st RE an email telling him all this and that if he wants to keep his contact as a "Backup" in case the 2nd peoples contract fell over he should contact me. The original people lost the deal because of the lack of communications with us by the RE, and all of the RE mucking around, you should see some of the emails the guy sent me, not very professional I feel!
I may cut and paste some of it if anyone is interested in what not to say to a seller...LOL

 

[schmick]

I may cut and paste some of it if anyone is interested in what not to say to a seller...LOL

I would... Sounds like the RE Agent is 1) annoyed at loosing his commission and 2) having to tell his client, sorry, I wasted your time initially and now the property has been sold...

Congrats on achieving your desired result though...

 

[wylie]

The negotiation with the original people stalled, so we ended it today as the RE told me that they are going to put an offer on another property tomorrow .
Well we now have some new people interested (different RE) and they are happy with the $295,000.
Anyway, just wanted to let you all know that it's looking good for the sale that we wanted...

Do you have proof in writing that the original contract negotiations are definitely finished? The LAST thing you need is TWO buyers who BOTH have signed a contract with your signature on. Mum used to tell me one should put it in writing and if possible get the contract back or see it ripped up.

You may need to prove that you instructed the first agent that the contract was no longer to be used for further negotiations.

 

[MissMuffitt]

I have cut out parts with personal info in it, but this one is from the 3rd of Jan.

Have you signed a contract already? I hope not. If so, but not yet accepted, then shut it down obviously.
We did not have any other contract at that time, but who is he to tell me to "Shut it down obviously" if I had gotten the price I wanted on a new contract!
I will tell the potential buyer that you must discuss the matter with your bank first. Can I say you will do so tomorrow?

On a separate note, the tenant is going to become annoyed at some point with the number of viewings in the unit. Harcourts asked for one yesterday, and again today, and neither day have they come to get keys! This is very frustrating for a tenant to be constantly displaced.
On a number of occasions he has bad mouths the other RE in the area that have the listing, The agent he was talking about had the tenants number and had been talking to her about inspection, she (the tenant) has been fantastic and very helpful. Harcourts after talkint o the tenant always put in the correct forms to view the property

 

[MissMuffitt]

Do you have proof in writing that the original contract negotiations are definitely finished? The LAST thing you need is TWO buyers who BOTH have signed a contract with your signature on. Mum used to tell me one should put it in writing and if possible get the contract back or see it ripped up.

You may need to prove that you instructed the first agent that the contract was no longer to be used for further negotiations.

This is the last email I got from the 1st RE on the 7th.

I will cut out the personal bits.

(First is last as it's the message that was sent back and forth between us)

Hello ME,

Sorry about that. I've done my best.

Regards,
Dave.




On 07/01/2010, at 1:17 PM, Me wrote:

> Hello David,
> Thanks for your email and letting us know what is happening in regards to the unit.
> As today is the last day for their offer and I have to go to work till after 6pm. And they are going to make an offer on another property tomorrow, I guess that is the end of it for us then.
> Thank you for your help... Better luck with the next ones....
>
> Regards Me
>
>
>
>
>
>
> On 7/01/2010 10:05 AM, Him wrote:
>> Hello Me,
>>
>> Did I just blink and miss Xmas and New Year? )
>>
>> I received the Contract c/o Philip. Thank you. I had Philip forward it on to the buyers I have been working on.
>>
>> This morning I spoke to both of them separately about the unit. I am doing everything I possibly can to finalise the sale for you.
>>
>> They are both back at their respective jobs, and getting back into general 'life'. I see this happen all the time. The interest in Agnes Water starts to wane, and deals I were close to completing for vendors just vanish. Pop!
>>
>> In short, their offer of $290,000 is still good for today. They are both telling me that they will not go any higher.
>>
>> In your best interest, I wish to tell you that they intend putting an offer in on another place tomorrow morning. I am not putting pressure on you, I'm just telling you everything I know.
>>
>> FYI - PRD asked for a viewing last Tuesday morning (after making a big song and dance on the Monday), and then never came for the keys? I don't know what these agencies are playing at, however it's inconveniencing your tenant. Harcourts did that twice already as you know.
>>
>> That's all I've got for now Me.
>>
>> Kind regards,
>> Him.
>> Sales Director.
>> 4974 xxxx
>>
>>

 

[wylie]

I would want to make really sure that your first contract cannot be signed (as it may have been now by the first buyers). When you said in your email "as today is the last day for their offer" - does that mean they put a clause in with a deadline for you to sign? If so, and the deadline has passed, I assume that contract and counteroffer is no longer valid, but please check this out.

I don't mean to worry you, but those emails don't spell out that "we would like to withdraw the contract" or similar. I would want to see it ripped up. I would get straight onto the first agent and make sure that he has not had them sign the contract you had originally signed. If they put in a contract for $270K, and you crossed out the $270K and put in $295K and the first agent has now had them agree to sign at that price, then I would think that is a valid contract UNLESS you have in writing that you wish to withdraw the contract.

I am unsure of the actual legalities but I would check this out very quickly. Perhaps the fact that you have a contract signed by the second agent dated before the contract signed with the first agent may make it OK, but please make sure. Goodness, that could be a mess.

Maybe call the REIQ?

 

[Perp]

I agree with wylie; this could be ugly. Make sure that first contract can't be enforced.

PS I'm delighted that it appears I was wrong, though, and that you now have people fighting to pay $295K. Great result!

 

[skater]

I'm a little confused, having never purchased a house in Queensland. Am I correct in assuming that the seller signs the contract, then the purchaser puts the price they want and also signs?

Surely that is a crazy way of doing it, and open to this kind of mess? If you have already signed, and they change the price then sign, could that not make it a legally binding contract at whatever price the vendor wanted.