The offer is in... waiting for a response.

I have put in a written offer on a place in Melbourne that is going to auction in a couple weeks. I put an expiry date (today) and time (5 pm) on the offer. 3 hours to go, and no word from the REA.

I'm begining to suspect the REA isnt even going to show the vendor my offer. As far as I understand it, the REA is obliged to show the vendor all offers. Is this right?

Just want to get my facts straight before I speak to the REA.
 
What did the REA say when you put in your written offer? Did he give any impression that the offer you gave would/wouldn't be considered?
 
I'm pretty sure you're right - though will leave that to someone more qualified to answer...


Maybe the vendor and/or REA is being a tad greedy or have high expectations however have failed ot realise that the market is "cooling"? Make sure you attend the auction, you may even pick it up for less! :)
 
Why would you think the REA won't show the vendor the bid? Was it a ridiculously low bid?

Yes, they are obliged to present all offers. As for why he/she hasn't come back to you, at this stage, everything else is just speculation.
 
What did the REA say when you put in your written offer? Did he give any impression that the offer you gave would/wouldn't be considered?

Its a recently listed property so I think they may want to do a few more opens to get more interest. Hence why I put an offer in early with an expiry.

The offer is fair as I see it, in fact it was above the quoted range, but with the prices some people have been paying in Melbourne who knows what they are thinking.
 
As far as I understand it, the REA is obliged to show the vendor all offers. Is this right?

No, sorry, not right. The REA has an agreement with the vendor and as such has a contractural obligation to the vendor to get the highest price on the best terms to them. The vendor may have instructed the agent to only take the property to auction (no offers will be entertained prior) or may have instructed to not put any offers to them under $xx amount.

That is why it is better to ask what the situation is first. i.e. "Are the vendors open to offers before the auction or are they committed to the auction process?". I have asked this many times and have sometimes been told "No, they are definitely committed to taking the property to auction".

With this information, what would be the point of making an offer prior? All you would be doing is revealing your hand.
 
With this information, what would be the point of making an offer prior? All you would be doing is revealing your hand.

but the agent wrote the offer up, so he must have been acting within his mandate. my understanding is all written offers MUST be presented to the owner.
 
That is why it is better to ask what the situation is first. i.e. "Are the vendors open to offers before the auction or are they committed to the auction process?". I have asked this many times and have sometimes been told "No, they are definitely committed to taking the property to auction".

Did that... they are willing to sell before auction, hence the offer going in.
 
That is why it is better to ask what the situation is first. i.e. "Are the vendors open to offers before the auction or are they committed to the auction process?". I have asked this many times and have sometimes been told "No, they are definitely committed to taking the property to auction".

Even if you ask this question, how do you know they're really seriously considering pre-auction offers and not just having a bet both ways?
 
assuming that the offer was written up with the REA? not just written and sent over to the REA saying 'there you go pick the bones out of that'?

Nope.. letter of offer was sent to REA. I asked about putting in a signed contract and the agent said that an offer via email is good enough!

I'm guessing he wants to colate a few offers to play people off against each other.
 
Nope.. letter of offer was sent to REA. I asked about putting in a signed contract and the agent said that an offer via email is good enough!

I'm guessing he wants to colate a few offers to play people off against each other.

ah gees... these agents. Emails aren't offers, emails are puffery. Hate to tell you but all you have done is play your hand
 
ah gees... these agents. Emails aren't offers, emails are puffery. Hate to tell you but all you have done is play your hand

so do you need to hand it to the RE in person for it to be a vaild offer?

i thought as long as you write up a proper offer and attached it in an email, that would fine!?
 
so do you need to hand it to the RE in person for it to be a vaild offer?

i thought as long as you write up a proper offer and attached it in an email, that would fine!?

I think the issue here is that there was simply a statement in the email to the effect of "I offer $xx for the property at Y'...
 
Speaking from Qld experience an agent must communicate all written offers however is only required to communicate expressions of interest (written or verbal) at their discretion. This is section 4 of the PAMD22a.

Your email very much sounds like a written expression of interest and as such the agent would, in my view, be able to use his discretion in chosing if the offer need be communicated.

I'm not sure how this applies to VIC however thought i would share my 2c.
 
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