One of agent's tactics to help seller getting highest price

[htopg]

One of agent's tactics I have seen
- good for the sellers, "bad" for the buyers

1. give a "fair" comparable market price to seller, say 320k-330k.
2. advertise it as "over 330k"
3. get offers from potential buyers, say 330k, 331k, 335k, 337k, 339k, etc
4. come up with an imaginary price at 5000's and higher than all offers
in this instance, 345k is the price
5. tell all buyers who offered that owner wants 345k, and ask if they would can offer 345k
6. if one offers 345k, agent will give all other buyers "second chance" to outbid 345k
7a. if no one outbid it, the original offer will get accepted
7b. if someone outbid it, agent will give all buyers the final chance to give their highest offer
8. (if 7b occurs) agent accepts the highest offer

 

[Propertunity]

Sounds like standard negotiating tactics engaged in since Adam was a boy

 

[Peter_Tersteeg]

I imagine that if the vendor gets $345k for a property worth $330k they'd be fairly happy about it and will feel that the agent has done their job well.

 

[robbiejuve]

REA has only come back to me once in a month of bidding in the Sydney market, even on the properties I have offered within asking range. Maybe they only pick the top 3-4 to play off each other?

The one time they did ask me to increase my offer I congratulated them on the sale and told them I looked forward to seeing them at the next property they have an open for.

I'm not playing their silly games.

 

[Leeburg]

One of agent's tactics I have seen
- good for the sellers, "bad" for the buyers

1. give a "fair" comparable market price to seller, say 320k-330k.
2. advertise it as "over 330k"
3. get offers from potential buyers, say 330k, 331k, 335k, 337k, 339k, etc
4. come up with an imaginary price at 5000's and higher than all offers
in this instance, 345k is the price
5. tell all buyers who offered that owner wants 345k, and ask if they would can offer 345k
6. if one offers 345k, agent will give all other buyers "second chance" to outbid 345k
7a. if no one outbid it, the original offer will get accepted
7b. if someone outbid it, agent will give all buyers the final chance to give their highest offer
8. (if 7b occurs) agent accepts the highest offer

Maybe I'm missing something here, but that sounds like the standard procedure for multiple offers on a property.

Having multiple offers changes the dynamic quite a bit, and just because you've offered 'over $330k' does not mean the vendor will go with your offer over the highest one..

As a side note, the agent must have done a bloody good job to get 5 offers above the provided market value!

 

[Jacque]

REA has only come back to me once in a month of bidding in the Sydney market, even on the properties I have offered within asking range. Maybe they only pick the top 3-4 to play off each other?

The one time they did ask me to increase my offer I congratulated them on the sale and told them I looked forward to seeing them at the next property they have an open for.

I'm not playing their silly games.

Hi Robbie

In this type of market that we're experiencing, they don't really need to play "silly games". When they have multiple attendees at open homes, multiple offers and are in a sellers market they can pick and choose the most highly qualified buyers to move forward with. That's what the vendor would expect them to do, and rightly so. You need to understand and adapt to the type of market that you're buying in and focus your energies on this. Try not to get caught up personally with selling agents or offended by their behaviour- remember they are working for the vendor, NOT the buyer.
Best of luck with your impending purchase.

 

[robbiejuve]

Hi Robbie

In this type of market that we're experiencing, they don't really need to play "silly games". When they have multiple attendees at open homes, multiple offers and are in a sellers market they can pick and choose the most highly qualified buyers to move forward with. That's what the vendor would expect them to do, and rightly so. You need to understand and adapt to the type of market that you're buying in and focus your energies on this. Try not to get caught up personally with selling agents or offended by their behaviour- remember they are working for the vendor, NOT the buyer.
Best of luck with your impending purchase.

I totally agree and on the contrary I recognise the importance of building rapport with all the REA's in the area I am looking at so I am always nice and they email almost daily.

It's very obvious to me from an open house how much interest there is in a property so the "silly games" I am referring to is when they are trying to play me off imaginery bidders, I think thats a little unethical.

 

[DavidMc]

Don't you also have that 'other' house you are bidding on?

 

[Colin Rice]

Try not to get caught up personally with selling agents or offended by their behavior

This is a great life philosophy in general.

To be unoffendable is freedom and with practice it is obtainable.