'One chance to make an offer' strategy

[Brady]

I recently purchase (still to settle) on a scenario similar. Good thing was that agent stuck to his word, he's been around for a long time. He said that he was collecting offers that day and if price that vendors wanted and conditions were met then they will sell.

During the open someone put in an offer whilst I was there, the REA said straight away thank you for the offer but I can tell you straight away that it wont be accepted as already received higher offers.

The property had only been on the market for 2 days so people were trying to pick it up cheap. First open hadn't even been scheduled but so many enquiries he let people in on a Tuesday morning. I saw good value in it offered asking price unconditional, I made it very clear to the agent that I'm offering them exactly what they want with the conditions they want, if a higher offer wasn't presented during the day and they didn't accept my offer I advised him that my offer would expire and would no longer have any interest in the property. Luckily the agent rang back that night to say offer was verbal accepted.

Next day signed contract and agent told me when he rang all the other interested parties a lot of them started to offer more above my price, but the REA and the vendors stuck to their verbal agreement and signed the contract the next day even though they had higher offers.

 

[Beau Lyon]

This tactic works well when it is common for all the agents in the area to use it- buyers low ball and try to get a bargain and miss out a few times this way, and get so sick of the disappointment and frustration of the process that they trust the agent of a house they really like and ask them how much they will hage to pay to win the bid, the agent gives a high number, and they just offer it. That's how record sales are made inareas where this is common, such as Western Sydney. The good thing for buyers however is that because this process continues, by the time their property has settled someone else has seen the high price that was paid for the previous property and offereddan even higher one for a new comparable property, setting new precidents and driving prices up so the high price the first buyer paid starts to seem quite cheap comparably.
In the Inner West we tend to just go to Auction as that is what buyers are used to and trust.

 

[Experimentee]

This was what happened when we purchased our first property, agent asked for best and highest offers, and we went crazy trying to determine what our offer would be, as we didn't want to pay too much, but also didn't want to miss out as there was only one chance. In the end we put our offer in and got it, the agent said we only won by a narrow margin, but for all we know he could have been lying and we could have overpaid. This whole process is dodgy, I prefer having it in the open.

 

[alexlee]

This was what happened when we purchased our first property, agent asked for best and highest offers, and we went crazy trying to determine what our offer would be, as we didn't want to pay too much, but also didn't want to miss out as there was only one chance. In the end we put our offer in and got it, the agent said we only won by a narrow margin, but for all we know he could have been lying and we could have overpaid. This whole process is dodgy, I prefer having it in the open.

It's a process that favours the seller, especially in a hot market. Guess who the agent works for?

 

[impala67]

A few of my friends have missed out on purchase via this method. One of them saw the agent weeks later at another open and advised they would have paid x amount more.

 

[oc1]

A few of my friends have missed out on purchase via this method. One of them saw the agent weeks later at another open and advised they would have paid x amount more.

Why didn't they when they along with everyone else offer this x amount?

 

[wylie]

A few of my friends have missed out on purchase via this method. One of them saw the agent weeks later at another open and advised they would have paid x amount more.

There are plenty of people who can say afterwards "I would have paid more" and I agree not even knowing something is on the market makes that possibly more likely, but if the agent is instructed by the vendor to sell this way, then that is the risk they take.

Generally, if a house has been marketed openly or auctioned, and you hear the old chestnut of "I would have paid more" you would have to ask "then why didn't you?"

 

[sanj]

Why didn't they when they along with everyone else offer this x amount?

exactly! you go in knowing the rules of the game yet try to be too cute, some people dont make any sense to me.

 

[travelbug]

Being an agent, I agree that you don't have to paly games, be it a buyer market or a sellers market. At the end of the day, if a buyer has interest, and they are the only buyer, then I don't believe you have to fabricate anything. How does the property compare etc and there is a price a seller will sell for, and one they wont. When we have more than one buyer, then we do tell them, and give them ample opportunity to consider their situation. I must say, I don't think it inappropriate to ring all buyers back, and confirm all offers are now in, and we are on our way to the seller. Have they had second thought's, and would they like to reconsider their position.

I'm not normally a fan of the "no price" marketing.

However we recently sold our Meadowbank unit with no price point.

Instructions were to contact the agent. There was one open home (at which 54 couples attended- 12 were there 20 minutes before and the open started 15 minutes early).
Buyers were instructed to submit their best offer by 5pm Monday (nothing about one time only etc). By 5pm we had 3 offers at $510k. The agent rang the three bidders and one went to $515K. Sold!

 

[wylie]

I'm not normally a fan of the "no price" marketing.

However we recently sold our Meadowbank unit with no price point.

Instructions were to contact the agent. There was one open home (at which 54 couples attended- 12 were there 20 minutes before and the open started 15 minutes early).
Buyers were instructed to submit their best offer by 5pm Monday (nothing about one time only etc). By 5pm we had 3 offers at $510k. The agent rang the three bidders and one went to $515K. Sold!

How much did you hope to get? How much did your agent think you would get?

I much prefer this than "one time only" stuff or tenders. I hate tenders. I wouldn't sell by tender either because I know it puts me off as a buyer, so why would I opt for a sale method that I know will mean many won't even bother with.

 

[travelbug]

I looked at selling last January (2013) and would have got $420 going by the listings. I decided to wait as Mt Druitt had gone up but this hadn't so much.

GLAD I did.

3 agents said I'd get close to $500K. I thought I'd get just over that but would have been happy with $500K.

The agent I went with "assured" me I'd get more than $500K. He even put on the contract a lower commission if it sold for $500K or lower.
I know lotws of agents talk the talk but he was excellent and delivered on all his promises.

 

[wylie]

I looked at selling last January (2013) and would have got $420 going by the listings. I decided to wait as Mt Druitt had gone up but this hadn't so much.

GLAD I did.

3 agents said I'd get close to $500K. I thought I'd get just over that but would have been happy with $500K.

The agent I went with "assured" me I'd get more than $500K. He even put on the contract a lower commission if it sold for $500K or lower.
I know lotws of agents talk the talk but he was excellent and delivered on all his promises.

That is great. Well done .