Auction today reported in the Age, 41 George Street, Doncaster East http://news.domain.com.au/domain/real-estate-news/labour-day-long-weekend-auctions-deliver-mixed-bag-of-results-20150307-13xv7m.html Guide price $850,00, "Bidding started at $850,000, but at $955,000 the house was passed in to a middle-aged couple. A later offer of $980,000 fell short of the $1,018,000 reserve.". In a case like this I'd like to see the agent or vendor forced to pay unsuccessful bidders' legal and survey costs.
REA Dirty Tricks!
- Thread starter LJ
- Start date
They're making changes to hopefully prevent this in NSW:
http://www.news.com.au/finance/real...al-estate-prices/story-fndban6l-1227252310381
90 people attended - 5 bidders
Sounds like the vendors expectations on price was incorrect as no one felt it was worth over 1M.
This house was not sold
http://www.realestate.com.au/property-townhouse-vic-doncaster+east-119018503
http://www.realestate.com.au/property-townhouse-vic-doncaster+east-119018503
Looks like vendors expectations were to high, guessing the bidder for $980k moved on and now they have nothing. With that asking price it might be difficult to obtain a 980k price.
This heading reminded me of a situation that I keep on wondering about. I am not accusing the agent of dirty tricks at all (he's/her job is to get the highest amount for the vendor). I am just curious about if it should of been dealt differently for the next time I buy a property.
The situation was my friend (now girlfriend) and I looked at a unit. When we saw the unit we asked for the S.32. Got the S.32 and 5 days went passed (while we did some background stuff).
When we looked at the property and for the next 4 and half days I told my friend to offer $222,000. This was never told to the agent. Before giving the details of the offer on the property to the agent I decided the offer should be reduced to $218,000 (see if it could be gotten cheaper).
So the $218,000 offer was put on the table. The agent came back to my friend within 24 hours and said she could offer $218,000 but he thinks the vendor wouldn't accept it as previously the vendor had an agreement for between $225k to $235K previously but that offer fell through because of finance issues. However if my friend offered $222k the property would most likely be hers. Well we agreed to offer $222k and property was ours.
These are the what ifs that keep going in my head.
1) Should we have offered less than $218,000 (it was advertised at $205k to $225k, however previously it was advertised at $215k to $235k). IE. offered between $210k to $212k? Would the agent gone back to us with an acceptable offer to the vendor like he did if it went $210k to $212k and that price been less than $222k?
2) Should we kept to our guns and stuck with $218k and saw what happened? Yes would have been risky as another buyer could of come in, but any chance the vendor would of accepted $218k.
Once setlement does occur I plan to ask the real estate agent the 2nd question (as I'm curious if the property could have gotten cheaper.)
Interested in peoples thoughts on this.
The situation was my friend (now girlfriend) and I looked at a unit. When we saw the unit we asked for the S.32. Got the S.32 and 5 days went passed (while we did some background stuff).
When we looked at the property and for the next 4 and half days I told my friend to offer $222,000. This was never told to the agent. Before giving the details of the offer on the property to the agent I decided the offer should be reduced to $218,000 (see if it could be gotten cheaper).
So the $218,000 offer was put on the table. The agent came back to my friend within 24 hours and said she could offer $218,000 but he thinks the vendor wouldn't accept it as previously the vendor had an agreement for between $225k to $235K previously but that offer fell through because of finance issues. However if my friend offered $222k the property would most likely be hers. Well we agreed to offer $222k and property was ours.
These are the what ifs that keep going in my head.
1) Should we have offered less than $218,000 (it was advertised at $205k to $225k, however previously it was advertised at $215k to $235k). IE. offered between $210k to $212k? Would the agent gone back to us with an acceptable offer to the vendor like he did if it went $210k to $212k and that price been less than $222k?
2) Should we kept to our guns and stuck with $218k and saw what happened? Yes would have been risky as another buyer could of come in, but any chance the vendor would of accepted $218k.
Once setlement does occur I plan to ask the real estate agent the 2nd question (as I'm curious if the property could have gotten cheaper.)
Interested in peoples thoughts on this.
You could but is it worth the risk of 4k in the grand scheme?
I am sure I could of potentially got my property for 5k cheaper but I could of really tried which might have let the vendor look at more options and then end up costing me another $20k or even miss out.
In my example it was an auction with low 500s as the price. Bank value had it 530k and I was willing to bid up to 550k. I was the only one to bid and it got passed in and won it for 510k.
I am sure I could of gotten it for 505k if I really played my cards right but in my greed I could of stop the negotiations and then someone else puts an offer in at 510k and I lose it (or have to pay more).
Id say good work and the purchase and onwards and upwards
I am sure I could of potentially got my property for 5k cheaper but I could of really tried which might have let the vendor look at more options and then end up costing me another $20k or even miss out.
In my example it was an auction with low 500s as the price. Bank value had it 530k and I was willing to bid up to 550k. I was the only one to bid and it got passed in and won it for 510k.
I am sure I could of gotten it for 505k if I really played my cards right but in my greed I could of stop the negotiations and then someone else puts an offer in at 510k and I lose it (or have to pay more).
Id say good work and the purchase and onwards and upwards
Love you input on hyperlinking a post without any comments or feedback, thanks.
Maybe people should do their own DD?
Also I don't get his 5th point
5. Pre-auction offers
You put in a pre-auction bid because you don?t like auctions, which the agent then uses as leverage with all the other buyers that attend the open inspections
The agent then advises you the owners will not sell to you at your pre-auction offer, however also tells you for some miraculous reason the owners will accept your offer on auction night?. Yeah right!
I understand the first part of it and I wouldn't disclose my hand with a pre-auction offer. However what does he mean the owners will accept the offer on auction night?? The auction has happened earlier that day??? Or is he saying that the night BEFORE the auction the offer gets accepted?
The reason why this might happen is because there is no other interest and it would be a flopped auction if they go ahead. Again if you didn't submit an offer and waited for them to say 'we are accepting offers prior to auction' this could be an indication there is no other interest.
