Pre Approaching RE Agents?

[TJamesX]

To any experienced buyers out there....

I am looking to buy a PPOR in the next year, pretty much know what areas I'm after and what price range and the type of house, land size etc....

Is it common that if you know what you want - then it is a reasonable strategy to approach various agencies and let them know this so that if anything comes up in this criteria then they can contact you? Or will they generally not bother keeping you informed...

Reason I'm asking this is I saw a great deal only a couple of days ago for sale by negotiation, contacted the agent to have a look at the place but couldn't make the time he was showing people through as I was in Melbourne for the day.... Rang agent today, he said it was under contract!! The place listed and was under contract within a few days - seemed clear to me that the agent was not necessarily that concerned about getting the best price... fair enough I suppose.

So my thinking is if agents just want to sell (not necessarily motivated by price), and they know your a serious buyer - then your better off being on their contacts list so you can take advantage of situations like the one above??

Any thoughts

 

[karina]

I definitly think its worth building a relationship with the agents and letting them kniow what you are after.

I had a call yesterday from an agent I had constantly called for ages looking for duplex pairs. He called me and said have you got $x and I was like what have you got , he had a great deal for me 8% return on a duplex pair in cairns and less than 10 years old. This property didn't even hit the internet I had it under contract by the end of the day (sight unseen)

I think you need to do more than call an agent once and tell them what you are looking for, if you are serious about buying call them once a week that way they will remember you when that great deal comes along.

 

[Dazz]

I had a call yesterday from an agent........I had it under contract by the end of the day (sight unseen)

Holy smokes Karina !!!!! What level of DD were you able to conduct prior to signing ?? I could never do that.

What was the soil like ?? Any bad smells or mobile phone towers or other nasties.....many conditions on the contract ?? Or was it unconditional cash ??

 

[karina]

No I have pest building and finance conditions on the contract, so have 2 weeks to do all the due diligence. Have seen an external photo and the internals are being emailed to me tomorrow (looks new enough though)

I'll probably get the PM that manages my other cairns property to have a look as well.

Doesn't worry me as long as I have get out clauses, not the first time I have signed a contract sight unseen, in geraldton I was signing them without even seeing a photograph initially as if I waited for the photos they would have been under contract (back in the under 100k days of gero)

 

[Dazz]

Is it common that if you know what you want - then it is a reasonable strategy to approach various agencies and let them know this so that if anything comes up in this criteria then they can contact you? Or will they generally not bother keeping you informed...

Had a weird experience yesterday, receiving a personal invite from a Director of one of the agencies, inviting me to a cocktail party on the 23rd floor in their boardroom. I thought hah !!, now that would be interesting.....for people who know me, I wouldn't fit in to that crowd at all.

Sipping champagne and being ever so polite and subtely witty.....couldn't think of anything worse. I reckon come out and meet me in the industrial heartland, wearing your overalls and we'll crawl through the warehouse and really get to know it. I think they'd feel as uncomfortable doing that in their 3 piece suit, as I would standing there in their skytower.

Show me the dirt, show me the Lease and move on. Deals are done on the bonnet of cars and standing in warehouse concrete aprons. All of this cuddly shoulder-padded rubbing and champagne quaffing gives me the toms ****.

 

[lizzie]

definately contact the agents - and, as karina said, phone them several times to establish a relationship and show that you are keen.

we sold our last ppor (late last year) within four days of the listing to someone who was on the agents books. i just missed out on a development block that didn't even make the market - agent just rang a few people on his list (and one of those rang me), but the vendor ended up doing a deal with the guy next door.

 

[live2fish]

So my thinking is if agents just want to sell (not necessarily motivated by price), and they know your a serious buyer - then your better off being on their contacts list so you can take advantage of situations like the one above??

Hi guys,

This is the my first post on this forum, so excuse me if does not turn out as planned.

Agents will contact you if they know your a serious buyer, but they may have many other buyers on their contact lists who may have bought previously. They will prioritise that list and present the first offer that is submitted.

Stay in contact with your REA reguarly, just to let him know that your interested still and keep them updated with your investment needs if they change as you build your portfolio.

A real estate agent does not have to be the enemy, and can be another useful tool (excuse the pun) in your journey.

Regards

Wayne

"What is the lap record, and which way do i go?"

 

[Jacque]

Hi TJames

Get your finances in order so that you're ready to buy NOW

Do a simple checklist form and fax/email it off to ALL agents who service the suburb/s you're interested in. Maintain contact with them weekly to remind them of who you are, that you're financed, what you're looking for and what your budget is (a price range is preferable)

Check out all private seller sites, local and major newspaper classifieds weekly (there have been previous posts on the main sites so do a search)

Drive around the area you're interested in and consider letterbox dropping to those streets you're keen on. Keep the letter to home owners simple, honest and brief in your requirements. You may just be surprised to find a private seller or two who was considering putting their home on the market.

Good luck with your search

 

[twobobsworth]

If you don't get a relationship with an agent in the office, ring and speak to another agent in that office.

Ring them again 2 weeks later to ask if they've got anything new, or anything coming up.

Of course, if you also make crazy offers they will get the s#%s and ignore you, so make sure your offers are reasonable based on the circumstances.

 

[TJamesX]

Thanks for the advice all,

I think I need to arrange finance first then look to developing some contacts with real estate agents. See how it goes.... seems like a lot of the good deals can get done before the public really has a chance to look at them...

TJ

 

[karina]

TJ

Finance is key! Have a pre-aprooval in place , and when you are speaking with agents tell them that finance wont be a problem that you have finance pre-aprooved and you are ready to purchase.

If you tell them you have not organised it yet they wont bother with you.

always have a get out clause (pest building and finance )though on contracts just in case. Although you may have a pre-aprooval the bank still needs to be happy with the valuation and give you unconditional aprooval

good luck!

 

[buzzlightyear]

Now having recently undertaken a similar approach, consistently over the past few months in a particular suburb/vicinity in Melbourne, I am underwhelmed at the response and follow-up of many agents. Even when I know new properties have come on line at that agent which have fitted my brief.

Maybe I have met a bad bunch, however my approach was professional and reasonable. Doesn't mean the strategy isn't valid but be aware that this relationship might be one sided for a little longer than you expected.

 

[sailor]

Learned a good lesson the other day....a REA from whom we have purchased 4 properties over the last 3 years, was surprised when I phoned him regarding a small block of units on realestate.com.au. He said "Gee, I thought you would have run out of money by now!" I said, "We can always find the money!" He will definitely keep us in mind in future. He knows what we want.

 

[lizzie]

i was having a think about this situation whilst painting (again), and this thread.

the frustrating thing i have found in the past, with approaching agents, is that i often get phone call after phone call regarding properties that don't met the criteria i've set them - eventually they stop calling.

makes it very hard to get on the "list" when this happens.

 

[TJamesX]

Well got a call from another agent regarding a property I was going to inspect today.... cancelled appointment because the property is under contract!! This one was only listed for 5 days

So in my limited experience with the market, it seems REA's are most definitly not motivated by going that extra yard to get the best price for their vendor.... I had my suspicions but 2 out of 2... geeee

Seems like a lot of the hard work is done by the agents conditioning the sellers to accept a mediocre price range and when someone drops in it - no waiting around to close the deal.....

i was having a think about this situation whilst painting (again), and this thread.

the frustrating thing i have found in the past, with approaching agents, is that i often get phone call after phone call regarding properties that don't met the criteria i've set them - eventually they stop calling.

makes it very hard to get on the "list" when this happens.

Now having recently undertaken a similar approach, consistently over the past few months in a particular suburb/vicinity in Melbourne, I am underwhelmed at the response and follow-up of many agents. Even when I know new properties have come on line at that agent which have fitted my brief.

Maybe I have met a bad bunch, however my approach was professional and reasonable. Doesn't mean the strategy isn't valid but be aware that this relationship might be one sided for a little longer than you expected.

I suppose when you think about the average day for an agent, they probably have their mind on 4 or 5 properties that they have to sell now.... filtering ones that come in to match against buyer wish lists wouldn't be high on their priority list... they just want to sell what they have on their books to anyone that wants to buy.

I think a lot will come down to how competent the agent is and the likely hood of doing repeat business with their contacts. I would have thought that for agents that had their information systems together (ie had a list of prospective buyers with the things they are interested in against the house stock that comes in, in some form of database) - this could be an opportunity to move stock much quicker, their job is to basically match buyers with sellers.....

Either way... so far I've learn't that SOME REA's don't necessarily wait around for the best price, so have your stuff together and be ready to move very quickly if you see value...

TJ

 

[paulie]

Either way... so far I've learn't that REA's don't necessarily wait around for the best price, so have your stuff together and be ready to move very quickly if you see value...

TJ

my 2 cents and yes i am an agent.

Agents work for and are paid by the home sellers, not you. To suggest agents are not trying to get the "best price" for their vendors because they have sold properties before you had a chance to carry out your inspection is ridiculous. If you really would have paid more than the guy who bought it, don't keep it a secret, tell the agents what you are prepared to pay, and you might finally find yourself the proud new owner of your dream home.

Oh that's right, you haven't got your finances sorted out yet.

Good luck


Paulie

 

[geoffw]

If a market is hot, there's no way the agent will ever contact you.

And if it's not- well, show them you really ARE interested.

Keep in touch with them. Drop by every few weeks- preferably on a quiet day.

If you a re wanting to keep a longer term relationship with an agent- buy something.

My best relationships with REAs are people I have bought, sold, or managed through. I can go back to those people and get straight answers.

But for your PPOR- show them that you are interested. Keep them in the front of their mind. Don't hassle, just make them aware you are really interested.

Otherwise, you're just another one in a big queue of tyrekickers.

 

[TJamesX]

my 2 cents and yes i am an agent.

Agents work for and are paid by the home sellers, not you. To suggest agents are not trying to get the "best price" for their vendors because they have sold properties before you had a chance to carry out your inspection is ridiculous. If you really would have paid more than the guy who bought it, don't keep it a secret, tell the agents what you are prepared to pay, and you might finally find yourself the proud new owner of your dream home.

Oh that's right, you haven't got your finances sorted out yet.

Good luck


Paulie

I have adjusted the post to say some REA's because I am only writing from my limited experience.... so I apologise to any agents that have been offended.

But at the end of the day - and you can justify it all you like... I was genuinely surprised by these two situations. Both were listed during the middle of last week, one went under contract within two days, and from what I saw the price quoted was under market val by about 10-20%... the other I was to have a look today, and was told someone else was having a look at the property just before me as well..... but this was cancelled as they accepted a price on the weekend......

If you really would have paid more than the guy who bought it, don't keep it a secret, tell the agents what you are prepared to pay,

Whether I would have paid more than the guy who bought it is really not relevant because;

a) I don't know what was actually offered.

b) I didn't actually look at the place - and I'm not willing to offer $ until it is inspected.

I'm just suggesting the chances of getting the best price are much lower when first you underquote (and property is to be sold by negotiation) and then you sell the place before a reasonable number of people have had a chance to see the property (both were under contract within 5 days, one didn't even make the weekend)..... I also know the owners of the second property were quite old because the REA assistant told me - so my assumption is they wouldn't necessarily be market savvy

and you might finally find yourself the proud new owner of your dream home.

Well I've only been looking for 2-3 weeks... these were 2 of 3 properties I have inquired about

Do I really care about these two situations - no, there are plenty of properties around... and I'm in no rush.

You say that all REA's attempt to sell at the best price, I say that in my experience that this is not always the case..... you can try and convince me otherwise - but i probably won't believe you

TJ

 

[mitch]

Do I really care about these two situations - no, there are plenty of properties around... and I'm in no rush.

You say that all REA's attempt to sell at the best price, I say that in my experience that this is not always the case..... you can try and convince me otherwise - but i probably won't believe you

TJ

Gday mate ,

i've two bits of advice for you,tell a busy salesperson there's plenty of whatever (properties , cars , tv's etc ) and your in no hurry and say goodbye to attentive service ,and

its not the agent signing the paperwork , the vendor's driving this bus , if they want to accept an offer thats their choice.

 

[Sootygirl]

TjamesX
Mitch is right, its the vendor who accepts or rejects the offer. If Im not mistaken, the vendor has to be told of every offer no matter how low and he then accepts or rejects that offer. If you look at and like a house in the future, be sure to let the agent know that you are interested in entering negotiations. If the agent knows you are serious he will keep you informed as to any other bids.