Offer refused?!

[j_p]

Hi, I just put in an offer to buy my first house, it was rejected however and never taken to the vendor. Afterwards I was speaking with a friend who said the Agent must take all offers to the vendor even if they are lower than what they wanted.

Anyway I would just like to know if this is common, I thought it would be standard to put in a lower offer and then move up if needed. The agent said they would only take offers in the range stated on the listing.

For reference the property is listed $265k-$285k and I put in an offer of
$250k and said I would agree to a long settlement (3mths) as from previous conversations this would be quite favourable. A house sold for $240k about a week ago 3 blocks away on similar land (~700m) that was closer to the city centre and shops etc so I don't think I was been unreasonable.

This was the first time I've put in an offer so I was wondering if this is standard or the REA was messing with me knowing I'm a FHB.

Not sure if there is an exact question there but feedback on others experiences and how I should put in offers and negotiate would be very welcome.
Thanks!

 

[Bradsdad]

Are you sure it wasn't taken to the vendor?

If not you are correct in thinking ALL offers should be taken to the vendor. This is unless the vendor has clearly stated to the agent not to at under a certain level.
You mention a similar property in maybe an inferior position went for $240k recently. If you're comparing apples with apples I'd say your offer was a decent one. I'm assuming it went for >$250k which may mean either the other property went for a bargain, living area wasn't comparable or the purchasers of this one didn't do their due dilligence.
If the later is the case then feel good about the experience and the fact you didn't pay more than it's worth. There are plenty of others out there.

Out of interest, did the agent come back to you stating there was an offer being put in by another party and give you an opportunity to increase your initial offer? At the end of the day the agent may have been wasting their time (if you believe $250k to be the true worth) but it's nice to be asked (I'm sure any vendor would agree).


Regards
Steve

 

[Belu]

where are you looking for $250k? At the moment in vic the lower end of the market is going strong off the back of the FHOG bonus so some vendors are being picky and unrealistic.

Ben

 

[j_p]

refused by REA

Thanks for the replies.

The property that sold for $240k was in a better location 3 beds 1bath Brick home. The one I put in an offer for is weatherboard and a little further away from the shops etc. it is still 3 beds one bath, major differences are extra living area and a deck out the back. The house that sold also had a single lock up garage where as the house I want has a double car port.

The agent seemed very clear in saying she wouldn't even consider taking offers to the vendor unless they were in the range advertised and didn't even try to talk me up or anything. strange as also during the inspection it was stated "everything is up for negotiation"

I thought it was very strange (it is my first offer so I could be wrong) as the house has been on the market for about 3 months I believe. There is apparently an inspection this weekend for the property with people on their 2nd and 3rd inspections so it "won't last past this weekend" which almost made me laugh.

My partner really likes this house so she is a bit attached and I'm trying to be the reasonable one. The other reason we like this house is it is 300m from the gym we go to and I like going to the gym, can't see this as reason for a price shift for the market though.

 

[Perp]

This seems very odd, particularly given that the agent didn't try and get you to come up with a higher offer. I can't even think of a plausible explanation for this behaviour. If the vendor was adamant not to present any offers outside the range, why didn't the agent try and talk you into making an offer in the range, I wonder?

 

[evand]

Its these types of agents that make this reputable industry look bad.

OK, go to the vendor and ask them how much they will accept. Explain to them in no way are you trying to go around the agreement they have with the agent.

If you have ,tell them you made an offer to the agent and he didnt accept it. You dont have to disclose this.

If the agent doesnt like it, big deal. Your offer sounded very reasosnable...at least as a strating point, if not a sale price.

 

[buzzlightyear]

Nothing unusual with the REA not going back to the vendor if they have very clear instructions. However, usually the scenario you indicated would be the start of the negotiations and the agent, would then come back to confirm their price range or nominate a specific number.

Its hard to know how motivated the vendors are, if the property has been on the market for 3 months. 90 days is a pretty standard sole agency arrangement, so it might be a new agent marketing the property, so is talking it up. Might be different if the property remains unsold and it is late January, early February.

If you honestly think it is worth no more than $250k, then your only option is to wait and hope the vendor changes their mind. Ultimately, you need to decide what is the maximum you would be prepared to pay?

 

[VYBerlinaV8]

Write your offer on a slip of paper, with your first name and phone number, and slip it in the letterbox.

 

[j_p]

Just thought it might be some kind of trick to get me to call back and up my offer...

I figure my options are

1. Walk away
2. Drop a letter in their letter box (it is owner occupied) explaining what happen and here is my email to discuss
3. Call another agent, the one at the inspection(s) that I have been speaking with is not on the sign out front or the hand out (there are the same two on both) so calling someone else in the know could help.
4. Up the offer

Will see what happens, pretty excited to be looking at getting #1 even if as a PPoR

 

[evand]

Why wouldnt you have a quick, friendly chat to the vendor? Tell them you want to buy their house and how much do they want?

 

[MIZBUF]

"3. Call another agent, the one at the inspection(s) that I have been speaking with is not on the sign out front or the hand out (there are the same two on both) so calling someone else in the know could help."
Re that point- Could be that agent you spoke to won't be getting a full commission out of this particular sale and is therefore not to interested in starting the argle bargle- As others have said drop a note to the owner/vendor- stating you interest- and the enticement of the long settlement you mentioned - could be the clincher that they accept you above other offers- All the Best

 

[evand]

Just ask the agent you made your offer to if he's the listing agent. Easy.

In the case above inter office politics can often inhibit the buying process instead of helping it.

Agents control the communication between vendor and buyer and most of the time use that to their advantage rather than the 2 parties in the process.

So, again, you need to talk to the vendor.

"
Re that point- Could be that agent you spoke to won't be getting a full commission out of this particular sale and is therefore not to interested in starting the argle bargle-

 

[Bill.L]

Hi all,

If the agent has detected that you are inexperienced in purchasing property and have fallen in love with the house, then they would expect you to come back in case you 'missed out' with a higher offer, especially if your existing offer was outside what the vendor wanted to be notified about.

Go to other open for inspections in the area, especially those by the same agent, show interest. Also leave in a hurry because you have other properties to inspect (with other agents; make sure the agent knows this).

It is all a game, those that blink first lose. You have given ground with settlement date and probably showed excited emotions in the thought of gaining this property.

You need to be prepared to lose it to gain a good price, if you really want it, just raise your price.

bye

 

[willair]

Anyway I would just like to know if this is common, I thought it would be standard to put in a lower offer and then move up if needed. The agent said they would only take offers in the range stated on the listing.

For reference the property is listed $265k-$285k and I put in an offer of
$250k and said I would agree to a long settlement (3mths) as from previous conversations this would be quite favourable. A house sold for $240k about a week ago 3 blocks away on similar land (~700m) that was closer to the city centre and shops etc so I don't think I was been unreasonable.

This was the first time I've put in an offer so I was wondering if this is standard or the REA was messing with me knowing I'm a FHB.

If i was the vendor one would think you would want to know about the offer,after all you may be the only one the agent has on their books that is intertested in this property,there is a very simple way to test the system,put your offer on paper and go in low and tell the R-E that if they don't like your$$$ offer then cross your offer ,and write the price in their contract ,that way you either walk or resign the contract with your Legal people after checking the terms,

btw also tell the agent up-front you want to talk to the vendors ,if they ask why just tell them you want another look as you always miss important maintenance factors first time round, and watch they way they act,that way you know if they are on the level..good luck willair..imho..

 

[twobobsworth]

I would just make your best offer. This is your PPOR. If it's not accepted then move on. You must have some idea what you are prepared to pay.

 

[RGee]

You've offered $16k less than the listed price, and have approximately $17k in grants coming your way, so you could understand the line of reasoning going through the mind of the REA.

If I was in your position I would put the offer in writing; even if you did the first time, post or hand it to the REA and place a copy of it in the vendors letter box. Now, sit and wait. If the vendor is desperate to offload the property then they will accept your offer within three to four weeks if no other offers are made. After waiting for some time you may want to refresh the REA with the past offer made and advise that you will simply look elsewhere if your offer will not be considered.

Apart from that you really need to give your partner a slap and put emotion aside as it's something REA's thrive on.

 

[jasper]

If you are really convinced that the agent did not take the offer to the vendor I would put a note in the letterbox for the vendor. They deserve to know what is going on. Be prepared that the agent in all honesty will be very unhappy about this and will not deal with you after this. Because it is PPOR and first home I would be more likely to up my offer in writing to the agent and see what happens.

 

[Collector]

The way I see it is the advertised price is a range between $265,000 and $285,000.


The agent may have instructions from the vendor that they are not going to acept offer below the range.


The vendor really wants $285,000 but may be willing to take $265,000.

Is the property in NSW?


I hate price ranges and price statments such as "offers over $.......), i never look at a property advertised this way.



If I was looking at the property I would ask the agent what price he things the property is worth (the agent must tell you the esimate he gave the vendor not what the vendor wants (advertised price) - but i doubt they will)

I would then offer - in writing to the agent the lower end of the offer - that is $265,000 - this offer is most likely going to be regected also (guessing from your expirence so far)

Then the next time the property is advertised at the same range i would complain to the office of fair trading. - as they are know in breach of the legislation.


I would not bother contacting the owner - the owner has instructed the agent - no doubt about it!

 

[j_p]

The property is in the Geelong region of Victoria for reference.

Thanks for all the advice. My mum is actually going to the inspection this weekend to scope out what is actually going on so that I can find out. We will put in another offer depending on the outcome of this.

 

[Mom]

The way I see it is the advertised price is a range between $265,000 and $285,000.


The vendor really wants $285,000 but may be willing to take $265,000.

Is the property in NSW?

The way I see it, vendor wants to sell desperately. Will definitely accept anything above $265K Like $267,500. That's how I read it in NSW.