Taking an offer back

[Melbournee]

Hello all,

Gave an offer on a property - told Agent it was 5 day offer. However not put in writing - basic mistake -I know I should have but it was late and couldnt get hold of someone to help with the clauses.

The agent gave me "Contract of Sale" which didnt have any place where I could add more stuff?? Just for the future what place in the contract is to add something? or do you get another new one done.

After a lot of talking- turns out the vendor wants more $$ obviously and 5 days are up today. Told the agent who is still negotiating with me said he would rip out the current offer papers and place in my letterbox today. What if he doesnt? Anything I can say or write to void my previous offer?

Can the agents show my offer to others to get bigger bids? Is it a common practice?

 

[rugrat]

stress less. an offer is just that, an offer. It isn't a done deal unless you have exchanged contracts (and even then there is a cooling off period )

 

[Piston Broke]

After a lot of talking- turns out the vendor wants more $$ ?

This means your offer has been refused, therefore automatically no longer binding.

 

[boods99]

to give yourself peace of mind, a quick email, followed up with a phonecall rescinding your offer will do the trick.


Boods

 

[JDM]

As has been mentioned, no need to stress. Your offer has lapsed for two reasons:

1. Lapse in time. It has not been accepted within your allocated time frame. You should also be aware that an offer can be revoked at any time before acceptance. Even if you say your offer is only good for five days, you have the right to terminate that offer any time before acceptance has been communicated even if it is within those five days.

2. By the agent negotiating more money, they are effectively counter-offering. Any counter-offer declines the proposed offer and effectively issues its own offer. It's not possible to counter offer and then accept the previous offer if they won't come up on price unless the person reissues that same offer.

 

[JamesGG]

The agent gave me "Contract of Sale" which didnt have any place where I could add more stuff??

Just to clarify; did you sign this contract of sale? And if so, did you include the expiry period?

And yes, the agent may use your offer to get further offers. While they should not be showing the amount of your offer... some may do so. Most will simply use the threat of another offer to extract a higher bid from someone, though.

 

[willair]

When you look at the what prevails within the re game with no social consequences,and as most agents have the apperance of continuous
failure they either collect big time or get nothing,they can do what ever they want,and most will tell you anything to get the ink dry on the contract..

 

[JDM]

Just to clarify; did you sign this contract of sale? And if so, did you include the expiry period?

And yes, the agent may use your offer to get further offers. While they should not be showing the amount of your offer... some may do so. Most will simply use the threat of another offer to extract a higher bid from someone, though.

At the end of the day, does it really matter if the agent does use your offer as a negotiation tool with other purchasers? You have said you don't want to purchase the property so it shoudn't matter.

In saying this, the offer should be used as a general benchmark of the current market and no exact numbers/paperwork should be communicated to any future purchasers. I have no problem telling someone there has been other offers on a property though and feel it would be unethical not to tell the purchaser if asked.

In saying this, if the offer has lasped as in this case, the agent should not give the impression that the offer is still current.

 

[Lil Skater]

Gave an offer on a property - told Agent it was 5 day offer. However not put in writing - basic mistake -I know I should have but it was late and couldnt get hold of someone to help with the clauses.

The agent gave me "Contract of Sale" which didnt have any place where I could add more stuff?? Just for the future what place in the contract is to add something? or do you get another new one done.

Can the agents show my offer to others to get bigger bids? Is it a common practice?

Wouldn't you have put it in the Special Conditions section....?

Say this offer with expire on xx/3/2010? Something like that anyway.

They shouldn't show your offer to another person, i know they don't at my office, but i would imagine many would. What we do though, is after the contract is signed by the buyer and it's all done and there's no need for the other offers they go in the shredder.

 

[Melbournee]

Unrealistic vendor

Thanks all for your help. This one's auction is on coming Sat (27 Mar) so was worried about signing 3 days before and after auction thing.

The agent came back, I increased the offer, put twice the bigger cheque as deposit (cash carrot), gave them an option of longer/shorter settlement with an option to lease back for another year for lower price since they are looking for another property- from the feedback so far the vendor isnt budging from his "lowest price". Sounds unrealistic to me - I have been to many of the opens and am pretty sure the auction is not coming back with that number anyways. Talked to the agent and he was and is still convinced with my offer.

Told the agent that I am going to a clashing auction on same time (which is true) and so he would bring the paperwork and cheque back to me tonight. he agreed-So should be ok.

Also told him about the other properties I was looking into and he said not to look into "courts" when thinking of subdividing- he said the councils dont like to "overcrowd" courts. Is there any truth to it or he was just putting me off the rival properties?