Purchasing/negotiations with a xxxx+ property

[xcesiv]

I am looking at starting negotiations on my next property purchase

The property is advertised at 400 000+

During small talk with the Real estate agent he said the owner wont except offers under $420 000 and has already declined an offer of $410 000

The first question that came into my head... then why advertise at $400k+ if you want $420+..

But the question i came on to here to ask was
Is there any rules regarding the selling of a property using the Price+ marketing style.

EG. Is there a limit at which they can not say not decline while hoping for a better offer.. (advertised price +5% as an example)

Thank you in advance for your replies.

Regards
Warren

 

[alexlee]

You can offer whatever you want, and the owner can reject whatever they want. You offer low on everything, you don't buy anything. If the seller rejects every offer, the property doesn't sell. Simple as that, really.

 

[Jacque]

The first question that came into my head... then why advertise at $400k+ if you want $420+..

Because they can.

But the question i came on to here to ask was
Is there any rules regarding the selling of a property using the Price+ marketing style.

No

Best of luck with the sale, Warren.
Know what it's worth before you go making offers- $400K+ can mean anything from $380K-$600K depending on who's marketing it, where it is, what the vendor wants etc etc. Use some recent sales at the very least to know your market. Otherwise any offer you make is pure guesswork.

 

[btc]

this is what i believe is the case, from speaking to a REIWA agent about this.

if the property is advertised for 400K, and you offer 401K, then technically that is a sound offer to be accepted, the owner can negotiate for more, but cannot decline your offer (unless he has a better offer). So unless otherwise, they do not have a ground to decline your offer.

so i suggest speaking to your state institute for ruling.

 

[alexlee]

this is what i believe is the case, from speaking to a REIWA agent about this.

if the property is advertised for 400K, and you offer 401K, then technically that is a sound offer to be accepted, the owner can negotiate for more, but cannot decline your offer (unless he has a better offer). So unless otherwise, they do not have a ground to decline your offer.

so i suggest speaking to your state institute for ruling.

You've lost me. Why can't the owner decline an offer? The owner can reject whatever they want. Besides, the owner isn't a member if the REI.

Why would an owner need ground to decline an offer?

 

[kathryn d]

this is what i believe is the case, from speaking to a REIWA agent about this.

if the property is advertised for 400K, and you offer 401K, then technically that is a sound offer to be accepted, the owner can negotiate for more, but cannot decline your offer (unless he has a better offer). So unless otherwise, they do not have a ground to decline your offer.

so i suggest speaking to your state institute for ruling.

I think you will also need to have the offer non conditional, and in the list of requirements of the vendor..such as closing dates.
It is very similar to Canada in that way.

 

[Ed Barton]

this is what i believe is the case, from speaking to a REIWA agent about this.

if the property is advertised for 400K, and you offer 401K, then technically that is a sound offer to be accepted, the owner can negotiate for more, but cannot decline your offer (unless he has a better offer). So unless otherwise, they do not have a ground to decline your offer.

so i suggest speaking to your state institute for ruling.

an owner can accept or reject an offer. the advertised price is not an offer. when you make an offer to buy then it's an offer, that can be accepted or rejected. an owner can reject any offer.

 

[hobo-jo]

Is there any rules regarding the selling of a property using the Price+ marketing style.

Yes there are. I am assuming the property is in VIC as per your profile, but I believe there are similar laws/guidelines in other states also.

Because they can.

Well technically they can, but they would be in breach of consumer affair guidelines.

No.
Know what it's worth before you go making offers- $400K+ can mean anything from $380K-$600K depending on who's marketing it, where it is, what the vendor wants etc etc.

Actually yes there are.
Would have expected someone advertising investor and buyers agents services to be more knowledgeable.

The price at which a property is advertised, marketed or quoted for sale may be either a single amount or a price range.

If a single amount is advertised or quoted, it must not be less that the vendor’s selling price. Where the vendor has not provided a selling price, the price advertised must not be less than the salesperson’s current estimate of the likely selling price for the property.

If a price range is advertised or quoted, the lowest amount in the range must not be less than the vendor’s selling price. Where no vendor’s selling price has been provided, then the lowest amount in the advertised price range must not be less than the salesperson’s current estimate of the likely selling price for the property.

http://www.consumer.vic.gov.au/CA25...r advertising and quoting - Estate Agents.pdf

Do the right thing and report the agent, there are penalties involved and agent's using deceptive/baiting tactics like this should be punished.

 

[Crabnet]

Yes there are. I am assuming the property is in VIC as per your profile, but I believe there are similar laws/guidelines in other states also.


Well technically they can, but they would be in breach of consumer affair guidelines.

Actually yes there are.
Would have expected someone advertising investor and buyers agents services to be more knowledgeable.


http://www.consumer.vic.gov.au/CA25...r advertising and quoting - Estate Agents.pdf

Do the right thing and report the agent, there are penalties involved and agent's using deceptive/baiting tactics like this should be punished.

Tony Robinson the Vic Consumer Affairs Minister proposed to ban Price+ advertising if re-elected but he lost his seat and his party lost power.