Silent treatment - no agent information

[Burramys]

Last weekend I inspected a property, asking $300-325 000. The fundamentals are good but it needs a substantial renovation, approaching 15% of the lower end of the asking price, $45 000. The house is not at lockup and is owned by the resident, who seems to have run out of cash to finish the job.

Spending $45 000 is not overcapitalising as it's in a very good position. Council rates are based on a valuation just below the lower end of the asking price, $295 000. It's been on the market since early July 2013. Houses take 81 days on market for this area to sell, with a discount of 8%, or $276 000. It seems that other buyers have been put off by the reno.

RY is about 5%, CG looks good. Rent would be about $300/week. This means that the property would be valued at about $300 000. But it will cost about $45 000 to bring it up to standard, so I offered $260 000, now at $270 000. I'm prepared to go to $285 000. There will be several months of permits, renovations and fun.

The agent has been mainly silent, not contacting me, not giving details about why my offers have been rejected, not giving the vendor's response. I'm not quite sure how to handle this, as I have never been given this silent treatment before. Any ideas?

 

[grand dad]

The agent has been mainly silent, not contacting me, not giving details about why my offers have been rejected, not giving the vendor's response. I'm not quite sure how to handle this, as I have never been given this silent treatment before. Any ideas?

With Melb awash with cashed up buyers, its likely he does not want to waste time with you. Barely a year ago, he would have been fawning and obsequeious.

The time for lowballing and hard negotiations was definitely last year. We are now in a bull market.

 

[S.T]

I'd say they're looking for 350k and not bothering with your low ball offers. Time to move on.

 

[Burramys]

Thanks for the above. The property is in regional Victoria. The fact that it is still on the market nearly five months after listing is indicative. Do many agents disclose so little information? Is this a tactic to wear down the potential buyer?

Note that my initial written offer was not rejected out of hand. The agent could have said "That is below the reserve" or "I don't think that your offer will succeed". Instead he said that he would ask the vendor. I also indicated flexibility with terms, and explained why I was making a low offer: $45 000 in renovation.

 

[tobe]

move on or make another offer. If the agents not talking, those are the choices you are left with.

It may be they cant accept your offer cause they owe $295 to the bank, it could be that agent has now lost the listing, it could be a whole number of things.

 

[Joe D]

Bypass the Agent and contact the Owners directly. What is the worst they can do, say no?

 

[Burramys]

The property is still listed on the agent's web site, and a few of the property sites like Domain. I just sent an enquiry to a buyer's agent in that town, and she may be able to assist. I'm not keen on a percentage of the final price as a fee, as this is a conflict of interest. Her time spent is pretty much the same no matter what the final price. I may contact the vendor direct if the BA does not work out.

 

[grand dad]

Its a common practice for many agents use particular listings as bait advertising. The property often belongs to a friend or distant relative. Its not meant to be sold. The idea is that if its priced low enough the agent will have many potential buyers that he or she can direct to other listings.

Agents, don't you just love 'em!

 

[Property Hoarde]

Do not understand why an agent would do this. They are burning bridges with a potential buyer and maybe seller in the future.

It is not a particular guy in Ballarat with an American accent is it?

He did the same thing to me a number of years ago. He for sure will not be getting a property of mine to sell when time comes.

 

[wylie]

Its a common practice for many agents use particular listings as bait advertising. The property often belongs to a friend or distant relative. Its not meant to be sold. The idea is that if its priced low enough the agent will have many potential buyers that he or she can direct to other listings.

Agents, don't you just love 'em!

I have known (personally) a LOT of agents, and I've never known anyone to do this.

 

[S.T]

Well you know it could be something simple, owners instructions to agent are "Don't bring me any offers under 330k".

Cant see what engaging a BA is going to do really. If it's that good a deal offer more?

 

[chilliblue]

Email the offer to the vendors solicitor requesting a reply.

 

[kathryn d]

One property we bought a few years ago, the REA didn't pass along our offer.(offered full asking price)

It seems the REA had other ideas for the property. He did submit a low ball offer from his 'friends'.

Long story short..we contacted the owner directly, he was upset because he didn't know about our offer, and we ended up buying it.

A couple of years later we bought another from this vendor ..this time without using any REA.

 

[Burramys]

Thanks for the above. Clearly none of you are related to this REA. LOL. I'm writing to the solicitors, who I think have a more formal view of advising clients. While this is happening I'm putting the BA on hold, as yet no formal contract or payment.

 

[Propertunity]

... I'm writing to the solicitors, who I think have a more formal view of advising clients.

As a general rule, I learnt very early in my investing career, never to let lawyers do negotiations for you. Look, some solicitors are good at this, and some think they are good, but aren't.

IMO, you need to take a more direct approach and stop tip-toeing around the issue.

 

[Blurbman]

Agents doing fake or expired listings to draw people in? I think this was one. It has been listed for ever, and when i called to enquire they quickly mentioned others for sale.

http://www.realestate.com.au/property-house-nsw-parramatta-107322440

Current site views over 45,000.

BTW, after some searching it appeared the house was one of the oldest in the Parramatta region and has a heritage listing so strenuous you needed permission to choose the colour paint for internal walls. Not for me.

 

[GreenGoblin]

Congrats, Propertunity, on 8888 posts!

Trawling the forum and noticed that Propertunity now has 8888 posts! I reckon you should print that off and put it in your office, Propertunity - a very auspicious number! The challenge will be how long you can resist posting for...

Congrats,
GreenGoblin

 

[Player]

Trawling the forum and noticed that Propertunity now has 8888 posts! I reckon you should print that off and put it in your office, Propertunity - a very auspicious number! The challenge will be how long you can resist posting for...

Congrats,
GreenGoblin

5 hours and 41 minutes

 

[Burramys]

The REA advised that the property has been sold, and I'm a bit annoyed. Had there been a response we could have negotiated, and I was prepared to go much higher. No matter. The REA said that the vendor decided to give no reply. Is this normally the case, or does the vendor take a lead from the REA, acting on REA advice?

 

[vaughan]

The REA advised that the property has been sold, and I'm a bit annoyed. Had there been a response we could have negotiated, and I was prepared to go much higher. No matter. The REA said that the vendor decided to give no reply. Is this normally the case, or does the vendor take a lead from the REA, acting on REA advice?

While you were playing games with price, somebody else made a decent offer and ate your lunch. Ouch.

How is the agent to know you were prepared to pay more? Why would the agent waste time with a low-baller whir they were negotiating with another party prepared to pay a decent price?