Why do they do it?

[Ecogirl]

Currently I'm in the market for a property in Brisbane - Oxley. I found a property that was worth invesitigating further so I rang the RE Agency. The agent that had the listing was out of the office and her mobile doesn't have voicemail (what the?) - me being a GenXer wanted details now so I rang the office back.

I spoke to another RE Agent about the ppty. He was sort of helpful until he told me this gem - the ppty has been on the mkt for a while now - it was originally listed at $260k but now is listed at $240k but they will probably take $220-230k. I said, gee thanks very much, left a message for the listing agent to ring me and hung up.

So I went about my due diligence, since I'm buying sight unseen I organised for a PM to inspect the place for immediate rentability etc.

So I get the phone call from the listing agent and eventually made an offer for $212k (a deliberate low ball given the info above). We settled on $220k price tag - so I potentially saved $20k all because of a 'helpful' RE Agent. Now I just have to arrange build/pest etc.

Why do they do it - the vendor would be spitting chips if they knew! I wouldn't have made such a low offer if I hadn't known that information. Life sure is fun when you're buying but not when you're selling I reckon!!!

Interesting and heaps of fun!!! Now if the bank wants to play then I'll be in business

Ecogirl

 

[willair]

Ecogirl,you have to ask yourself the simple question?
Who is this real estate agent working for,you or
the vendor?it sounds like you have done well in
this deal,what area of brisbane is the new rental
property,imho r/e agents only work for themselves
and their over the top shorterm egos........
good luck
willair..

 

[duncan_m]

Why do they do it - the vendor would be spitting chips if they knew

Maybe its full of whiteants and they would have taken $205K

 

[Bricks & Mortar]

good buy!

Maybe its full of whiteants and they would have taken $205K

Looking in the bright side Duncan?

Now I just have to arrange build/pest etc.
it wont worry Ecogirl, as it looks like she has her bases covered

Well done!


Timm

 

[duncan_m]

Looking in the bright side Duncan?

No..

But you know what they say about Poker.. if you don't know who is getting shafted its probably you

Don't be quick to assume (although probably rightly) things about what motivates an Agent to say or do certain things. No one wins when jolly cheerful back-slapping sessions about good deals that are yet to "come to be" take place.

 

[Bricks & Mortar]

yep

No..

But you know what they say about Poker.. if you don't know who is getting shafted its probably you

Don't be quick to assume (although probably rightly) things about what motivates an Agent to say or do certain things. No one wins when jolly cheerful back-slapping sessions about good deals that are yet to "come to be" take place.

point taken

 

[plainsong]

Classic isnt it!


My son had the exact same experience when he purchased his house, the agent did the very same thing,,mind you without any negotiation first, he was told "Oh I know they will take x dollars," which was a lot less than the listed price.. they loved the house so much they would have paid more, but they werent asked to.
It was like something out of one of those books about Dont Trust RE Agents.

Good buyers agent certainly,

 

[sue78]

lucky for you!!

that's very scary though. I would die if I my R/E did that to me. the lesson here is don't trust anyone. I think we tell our R/E way too much more than he needs to know.

 

[skater]

I have an Agent that I have bought a few from & she regularly does this. Good for the buyer, but I would never sell through her.

 

[Aceyducey]

There are agents to buy from and agents to sell from.

I'd always advise that you try to buy through an agent before determining if you'd like to sell through them.

And consider sarefully before withholding information from your agent - don't sabotage your own sale by concealing vital information.

Cheers,

Aceyducey

 

[see_change]

Eco

All your relying on is what the agent says the Vendor wanted for the property. That says nothing about what it's actually worth , and you are assuming what the agent is telling you is the truth .....

I've seen several properties sitting on the market for many months recently because the vendors are asking unrealistic prices.

Also a 10 % drop below asking price at the moment wouldn't be uncommon in parts of Brisbane at the moment , if the vendor actually wants to sell the property.

See Change

 

[depreciator]

Good point Acey.
The last place I sold was through a buyer's agent, but I've bought and sold previously through traditional agents. When selling, we (me and the agent) agree on a price that we think is appropriate to the market. They always ask straightaway: 'Okay, so that's the price, what will you accept?' I always smile and say: 'I'll accept any offers over the asking price.'
Of course, if after a few weeks there is no interest, and if I really want to sell, I adjust my expectations.
Scott

 

[leapyeah]

Nobody holds a gun to the vendor's head. The bottom line is that the power lies with them to refuse an offer unsuitable to them, or indeed to sack an agent unsuitable to them.

 

[Simon]

True...but some people are more vulnerable than us hard nosed investors.

I would hate my mum to sell with the wrong agent - she would be very trusting.

Cheers,

 

[wish-ga]

Great point simon, after all the REAs are in SALES. And some people sell property so rarely. They may have been in that home for 38 years. A lot changes in that time and it is easy to get bamboozeld by sales people

<insert appropriate story here> (millions of examples spring to mind for each of us I am sure)

 

[Kenny]

Dear Ecogirl,

Congrats on the new IP in Oxley. Another step on the way to your goals.

Out of interest, did you check comparable sales and rents for the area and did the PM doing the inspection give you a good estimate of rentability?

Regards,

Kenny

 

[Hulkster]

Advertised price may have been an ambit claim.

We recently advertised an IP at above the price we actually wanted and sold at what we wanted. Purchaser thinks they got a bargain but we got what we wanted. Everyone's happy.

 

[MichaelW]

Its unreal isn't it!

When we bought our land we were over the moon with the asking price of $289K for 1,500m2 at Narrabeen. We just loved the sub-tropical rainforest block and walked in to the REA with a cheque for 10% down on the asking price to secure it before it was snapped up. It had been listed at $340K but was a divorce settlement sale and had dropped to $289K (we independently verified this too).

Here's the good bit... The REA told us to think about it and that he'd hold it overnight for us. His "tone and demeanour" made us realise there was money left in this deal for us. So we came back lowball at $270K the next day with some justification we made up, and he was a little shocked since the vendor thought he had a deal at full asking price. I think the vendor just got fed up then and accepted it at $272K the next day.

It was the REA that made us realise we could get a better price, even if he didn't spell it out as such.

A motivated seller and a "helpful" REA, I love it!!

Michael.