phantom offers?

[evand]

I am interested in a property in Erskineville Sydney that is to go to Auction this coming Saturday afternoon.

Its pretty rough but im a tradie, i'm ok with the tools and i have plenty of mates in the building industry, so no problem.

I asked the agent what price range and she says mid $600k's. Ok, all good so far.

Last night i get an email from the agent, as follows:

We need to inform you an offer in writing has been received today in the high $700,000.00’s for xxxxxxxx St. Erskineville. The executors will make a decision this evening whether to sell prior to Saturday’s auction.
If you would like to submit a written offer at this level please email to me so it can be forwarded to the executors for their decision.
Exchange would be tomorrow with a signed contract; 10% deposit and no cooling off (66W required from your solicitor/conveyance) as per auction conditions.

Regards


To me, this is a ingenious but sneaky way to draw out written offers at a much higher price than she quoted verbally. It could also be bona fide but then i either make an offer much higher than i expected or risk it being sold going to Auction on Saturday.

So i contacted her and asker her if i could see the written offer before i made an offer.

Of course, she said no. Privacy reasons.

So i said that if i made an offer and purchased the property i would want to see the other offer after purchase. If there was no other offer we'll be going to court.

As agents control the info flow between vendor and buyer(s) they can BS all they like and use privacy reasons as a way not be proved that they are BS'ing.

Has anyone came across this approach from an agent before?

 

[Propertunity]

That's the one at #54. The reserve will be in the very low $600K's due to the state of the property BUT some moose (2 of them actually) is offering high $700K's and another mid-$700K's and trying to buy it prior.

I suspect that one or both of these buyers missed our on 38 Morton in Lewisham which was worth similar money (around mid $600K's) but sold for $755K
http://www.realestate.com.au/property-house-nsw-lewisham-107202012

Some cooling market hey?

The renovator market is hot, and I've been trying to tell you this for some time, but you did not believe me.

 

[Rolf Latham]

heheh

A lot of peoplehave their eyes and ears on this one

Another really noice and obvious underquote job............when will the deception and theft be legislated against !

My belief is this puppy will go for in the early to mid 8s if it goes to auction

ta
rolf

 

[Propertunity]

My belief is this puppy will go for in the early to mid 8s if it goes to auction

I have come to that same belief....but the issue is that it would not be worth much more than that once it was fully renovated - so why bother?

This is the sort of behaviour you see during boom times when people pay as much or more for un-renovated as they do for renovated - so they "can put their own stamp" on the property. But for investors it is all about the numbers and the numbers do not add up on this one.....anymore.

 

[InnerWestie]

Evan, if you are so convinced that the market is overvalued why would you be sucked into this game with the RE agent?

I have little doubt that the offers are genuine, as I have mentioned before despite the gloom hounds on this forum I still think there are many desirable parts of Sydney that are accurately priced but in many cases eager buyers are willing to pay more than they are worth- it seems to be the case here. So my advice would be to look elsewhere...

RE agents would rarely bluff with this sort of thing because they would seriously risk scaring off genuine buyers.

Obviously, they haven't made the FHB pledge!

 

[cu@thetop]

So i contacted her and asker her if i could see the written offer before i made an offer.

Of course, she said no. Privacy reasons.

So i said that if i made an offer and purchased the property i would want to see the other offer after purchase. If there was no other offer we'll be going to court.

They already breached the privacy act by telling you of the offer and the approx price.

Tell them to show you the offer but blank out the purchaser's name. If they don't voice your concern that the advertised price guide was below the market price and you have expended/lost $x in wasting time inspecting property and you intend to complain to Fair trading and hold the agency reponsible for your economic loss. Judging by the other posters there may actually be an offer so it could all be a waste of time.

I dislike agents but we need to deal with them so think carefully before alienating any of them.

 

[evand]

I'm looking at this as a PPOR.

There are parts of the inner west which are slow. I wouldnt use one or two properties as evidence that the whole market here is going off. My particular area and surrounds are slow.

But Erskineville is a great area and admittedly is popular. I like it and evidently so do a lot of other people.

I have a price in my head that i think the property is worth and its nowhere near the numbers being bandied about here.

The property itself is pretty rough, heres a link seeing prop spilled the beans.

But its mostly cosmetic. Structurally the place is fine.

Who ever did the paint job was on something. Which is not unusual for the area.

http://www.realestate.com.au/property-house-nsw-erskineville-107238254

Looking at comparables having sold and for sale. Anything of over 700 is over the odds imo. I wouldnt pay over mid 600's.

But the inner west seems to often have dopey people pay over the odds for property. I've seen it so many times. If this sells in the 8's as Rolf says they should have a psychiatrist handy on site. The person would need to be certified.

The Lewisham place is a different house, different area and different market to buyers for the Erskineville property imo. Lewisham is much more family oriented.

cu@thetop, I've taken an agent to court before and won. So no biggie if she is lying but it probably wont come to that. Well i didnt actually win in the court, they settled out of court half an hour before the case was heard as they knew they were going to be hammered.

 

[Propertunity]

But its mostly cosmetic. Structurally the place is fine.

Not according to the building & pest reports I've read.

Who ever did the paint job was on something. Which is not unusual for the area.

Yes, it was a 'piece of work'

Looking at comparables having sold and for sale. Anything of over 700 is over the odds imo. I wouldnt pay over mid 600's.

On this point I absolutely agree.

The Lewisham place is a different house, different area and different market to buyers for the Erskineville property imo. Lewisham is much more family oriented.

The Lewisham place is different - agreed. But the point I was trying to make was that the purchasers paid $755K. It needs a $150K reno - absolute minimum - it has one the worst cases of rising damp I have ever seen. (although it has good bones) Stamp duty is $29.5K It will only be worth $950K as an end val when it is all fixed up. Total profit for all your hard labour and risk taking = $15K .....so why would you bother?

 

[lizzie]

Looking at comparables having sold and for sale. Anything of over 700 is over the odds imo. I wouldnt pay over mid 600's.

unfortunately, only seasoned investors apply logic. the rest of the market (the other 90ish%) is illogicial.

 

[evand]

Or be mislead by agents to pay too much and don't know better.

Aren't investors 30% of the market?

unfortunately, only seasoned investors apply logic. the rest of the market (the other 90ish%) is illogicial.

 

[evand]

I didnt get one, i rarely do. I use the principle that if others are bidding on the basis of their one, why do i need one.

I apply roughly the same principle to the stock market.

I took a builder friend in with me and thinks not too bad.

Not according to the building & pest reports I've read.

 

[Propertunity]

Either way - they are selling it today to the higest offerer - which will not be me, or you by the sounds of it.

 

[Jacque]

I didnt get one, i rarely do. I use the principle that if others are bidding on the basis of their one, why do i need one.

Hmmm.... did it ever occur to you that they might be thinking the same thing about you?

Sounds like you're out of this one anyway, Evan. Sure, agents play games and bluff at times but this sounds to me like a couple of genuine pre-offers. Certainly not unusual in this part of town and vendors may as well take a prior offer that suits them now, rather than wait for the uncertainty of auction on Saturday. We did this recently for a property in Glebe and it suited all parties very nicely

Keep searching.....

 

[evand]

It was supposed to be last night.

The executors will make a decision this evening whether to sell prior to Saturday’s auction.

Either way - they are selling it today to the higest offerer - which will not be me, or you by the sounds of it.

 

[evand]

No, because i know that 99% of punters waste money on building reports.

Hmmm.... did it ever occur to you that they might be thinking the same thing about you?

 

[Propertunity]

Email from agent: "We wish to inform you 54 Charles Street, Erskineville sold this evening for $791,000.00, as a result there will be no auction on Saturday."

So, it sold for $140K over what was good value

 

[Jacque]

The market has spoken.... not a surprising result given recent activity in this part of the world, really.

 

[jaycee]

Or be mislead by agents to pay too much and don't know better.

Aren't investors 30% of the market?

That does not make me as an investor sound as good as Lizzie's post did.

Therefore Lizzie must be right

 

[evand]

I got the email as well. I just got in so you beat me to it.

All i can say is "God, there's some muppets out there buying property"

Waaaaaayyyy over the odds.

Email from agent: "We wish to inform you 54 Charles Street, Erskineville sold this evening for $791,000.00, as a result there will be no auction on Saturday."

So, it sold for $140K over what was good value