I am trying to work out the point of a recent offer on our house.. any ideas would be appreciated. We listed our place online a couple of days ago and have had 2 inspections and 2 offers, the first of which was low and we declined (about 40k under asking price).
So we only just listed our place 2 days ago, and before it was advertised suddenly had an inspection. The agent called and said a couple had come into the office looking for property and would like to come and look right away. SO they did, and then that afternoon the agent came around looking concerned and said she thought we should re-think the price we want as they were only thinking of offering around 70-80K under the list price. (it is a modest price to start with) He said the father of the girl inspecting had pointed out a few cosmetic things that justified such a lower price (all of which we have since corrected). Then they put that low-ball offer down on paper, the agent informed me that the girl was actually a close relative of the real estate agency's owner. The conflict of interest obviously annoyed us greatly, but she insisted we counter-offer so did so near the list price. She drove away then called back 5 minutes later saying they were no longer interested.
I dont understand what the point of all this was - is it just a big waste of time, or some kind of dodgy tactic?
Low-ball Real Estate Offers
Comments
I would but have signed an exclusive agency 3 months with them.. so looks like I am stuck
if you have proof that there is a family connection, then the agent may have breached the contract, implied or expressed term on conflict of interest, accordingly you may be able to terminate and find your self a reputable agent. Also, tell that rouge agent that you will report them as well….
Aside from breach of contract, it could also be breach of fiduciary duty (conflict of interest).
You really should be seeking legal advise as the laws are different in every state. For example in QLD It is fine for the seller to have a beneficial interest in the property as long as they include additional paperwork (PAMDA form 7 I believe). This discloses any financial interest they have in the sale of the property.
From experience I have found real estate agent rarely work for the seller and are purely thinking of there commission (again varies from state) so a quick sale means less work and quick commission. If you know the property is worth it stick to your guns and don't feel pressured to sell for less.
Don't you have a 7 days "cooling off period" with this agent ?
If you have a conveyancing Solicitor ready, I'd be speaking to him/her about this - not Ozbargain.If not, get a reputable one quick.
Those exclusive deals aren't really worth the paper it's written on.
At worst they will get you to pay for the advertising they have spent on the place. However if you say conflict of interest on their part I doubt much will happen.
they told you about the conflict.
They could be conditioning you to accept a lower price. Maybe your house isn't worth what you are asking.
There's so much garbage in the media , ie ads dressed up as editorial(advertorials) to make you believe you must buy now.
The real estate industry, spend billions a year in Australia on advertising, but press & online (eg. realestate.com.au), so media outlets have vested interest in pushing sales.
You could have said to agent, 1/2 your commission & we'll talk.
Everything is negotiable including their commission, which is very high, which is why new agencies claiming lower commission are popping up everywhere.
BTW we buy a lot of real estate (as soon as we can we buy something else, but sell very little).
Our starting offer is never more than 80% of asking price, sometimes as low as 50%. We'd never make our final or best offer, 1st or 2nd time. If selling never ever tell agent what you'd accept or how desperate you are.
Not sure what % the agent is getting from the sale. At most I'd say 3%? If you had accepted the $80k less offer that's only a $2400 hit on their commission (or $1200 if you had accepted the $40k less offer), which is probably not worth the hassle of prolonging the sale.
Agents are there to make money, some are more caring than others.
There's a whole section in Freakonomics on this.
RE Agents just want a sale when they are selling your house and will push to get it.
When they are selling their own house they typically wait longer and sell at close to asking price.
However, IIRC in WA at least if the property is sold to someone connected with the agency they can't claim commission on the sale without your agreement…
It was worth a shot. You might have said yes.
Remember, the agent cares not in the least what price you sell for, as long as they sell it fast so they can move on to the next listing.
I find the behaviour of this agent unethical, and I would be incredibly cautious listening to anything they say.
It is an old trick to tell you a high valuation so you pick them to sell it, then badger you down to a lower price.
If the agent thinks you need to re-think your price immediately, ask why their guidance in setting it was so wrong.We saw 2 agents before her, and they all said around the price we have set it at. She also initially agreed, it wasnt until her boss was interested that she feigned concern. I just dont understand what the point of such a big time waste was.. or if they have some kind of scheme in mind.
We also paid for one of those highlight listings, and it was put up for 2 days at a small listing - not sure if that was also an oversight or if it was keeping it minimised for a reason.It isn't a time waste, they will probably convince 3/4 of their customers to sell cheap. This approach is likely very profitable to them, it just hasn't worked on you (they will probably have a phase two that is designed to make you sell before the listing get s"old" as if that matters).
I would definitely make sure you get the premium listing.Agreed, but I will add agents are on par with used car salesmen, they really are scum and can't be trusted. You need to do your own research and hope you find a good one e, they exists but are a minority
Wrong, car salesmen have to buy the car first with their own money before selling it, RE agents don't buy your house first, then sell it - though it seems this one wanted to !!
It's the typical 'good cop/bad cop' routine you see at used car sales yards. One person offers a price and then their accomplice steps up to say 'oh noes! the price is too high (when they're buying) or too low (when they're selling)'. They'll feign concern and show mock angst as the two conspirators perform their act in front of the customer. Sometimes they'll go a step further and try to convince the customer the price is an error (in the customer's favour) and that grudgingly, the deal will have to go through. Of course the price is on par with what the market expects.
If the customer doesn't bite they'll make up any old excuse not to go ahead with the deal and move on to the next customer. Used car sales people and real estate agents have a thoroughly deserved reputation because of this.
Change agents right away when they do this it is because they they are having a low sales period or just trying to get quick sales, as mskeggs has posted you might have accepted… we had this happen to us with one agent changed to another and bingo got the results we wanted.
You should do your own valuation based on prior sales and the local market.
Never trust a word they sayAgents just want to sell the house. They don't care if you sell for less as the difference to their commission isn't huge. It's probably just a tactic to make you think you overpriced it, so it'll be easier for them to get you to accept this or other offers in future.
You shouldn't trust anything the real estate agent says basically
Sound more like the girl and her father through their connections knew about the listing early and just low balled you just in case you were ignorant.
The Agent was probably pressured to make you sell, but protected herself by informing you of the connections.
I think this is probably the truth. But it still paints your agent as unethical, and I would bargain hard to get the price you listed if any other offers come in from any source.
The worst that can happen is that in 3 months you can find a more ethical agent (who might, unfortunately, quote a lower, more reasonable sale price too!)
which real estate agent company are you with?
I agree you should name them. They will be happy for the promotion I am sure.
Agree with mskeggs. Name the branch if things get worse.
I don't disagree with this post, but I am cautious.
Next week you could be looking to buy a house being sold by this agent (although I agree they would be unscrupulous).
I feel that your agent has complied with the rules, but has acted unethically.
I suspect you will find any complaints would lead nowhere, which doesn't mean you should not make them - you should, especially if you are confident you won't have dealings with this agent agin (because you are moving elsewhere or otherwise).
"I feel that your agent has complied with the rules, but has acted unethically."
Following this logic, does it mean the real estate rules are inherently unethical? Food for thought!
Probably right. I think the rules (that I am not familiar with), are designed to be flexible so as to not bog the industry down with regulations. I am aware of the rules for car dealerships and they have pretty much the same effect. You have to grant that these people are still trying to making a living and draconian clear cut rules could make things worse for both customers and sales people.
On the other hand, there are always people who will be willing to bend the rules and others who might be susceptible to their manipulation tactics. Buyer/client beware again.
REA's are mostly a slimy unscrupulous lot so treat them in that regard.
Before you listed did you get opinions from a few other agents? At least 4.
Agents like a quick sale, it means a quick commission and less outlay for the agency in promotion costs. In short, they want to maximise their profits. The REA's relative may be a set up also… looking to buy on behalf of the agency or agent so they can add it to their investment / rental portfolio.
If you are satisfied with what you are asking for the house then stick to it and keep any discounting to a minimum for ** AT LEAST 3 MONTHS **.
The agent may pressure you to lower the price but stick to your price for now. When this contract is nearly up contact a few other agents for a valuation before relisting.
Stay cool… don't panic!! It's still new on the market.
This is good advice. I'm not involved in your Brisbane market, but in Sydney all the power is with sellers. If you can delay a fortnight you can expect and extra $20k (and yes, I agree this is ridiculous, and a scorching over the top bubble).
If you can hold your nerve, you will get a good result.Don't hate the player, hate the game. There's a reason that they would be unscrupulous and that's because they have to be to make it in that field. If you don't like it feel free to sell your own house, lots of people do it.
Sorry for sounding so harsh but it really is like that, 80% of new businesses fail in the first 5 years for a reason. Let me just be clear though, I'm sure there are good people out there and I'm sure some work really hard and do succeed BUT most people want more out of life than slogging out their guts to do a good job for others if it's going to leave them exhausted and empty. Although on the other hand, how hard can it be so sell a freakin house?
Can we please stomp out that 80% myth. It's as resilient as the myth about the great wall of China from space.
Which myth? The one about the field or the one about how hard it is to sell a house?
This seems so damn shady. Relo's of the agent making low-ball offers within two days of listing? Can you tell them you've decided not to sell after all and walk away?
Don't read too much into it. It's your decision and you have already spent time valuing the place, her opinion from here counts for very little. Stick to what you want from this experience, laugh her out of your house and get her slack @rse back to work!
Fairly typical behaviour from a real estate agent. We've been unethically treated, lied to and given the run around by multiple agents over the years. I wouldn't trust anything that comes out of a real estate agent's mouth.
Make your decisions based on what you want, your own research and what you think is right for you, don't let them tell you anything or pressure you into anything.
There are a couple of agents that shouldn't take the zebra crossing in front of me in case my brakes fail unpredictably.
The crux of it is that it is so hard to take emotion out of real estate (times 10 if it is where you live, but even a bit for investments). The most profitable sales people exploit this, if you can find an ethical one, use them.
I have had a few friends in real estate and from what I've heard I wouldn't be surprised if they were low balling you early on so you bring your eventual sale price down. That may be why they asked you to do a counter offer, so they now know that you would be willing to sell for that price when another buyer comes around.
Agents are only interested in the sale. By bringing your price down you've gotten them one step closer.
There will always be people that try to rip you off…real estate agents, 2nd hand car salesmen, door to door salesmen, etc
It is up to you to see when that is happening and outsmart them or at least stop yourself from being their next victim. Unfortunately some people are more trusty …and they get ripped off.
That's life. You live and learn.I have friends looking to buy property in Brisbane atm, I was under the impression that it is the seller's market. I was told the property has been sold at a much higher price definitely not $40k discount. I do not trust real estate agent they are the same as car sales person. I am curious which suburb is your house ?
Wrong, car salesmen have to buy the car first with their own money before selling it, RE agents don't buy your house first, then sell it - though it seems this one wanted to !!
How to be a Real Estate Agent, the comprehensive guide:
- Tell prospective sellers their houses are worth a craptonload of money.
- Convince seller to sign because you're 100% confident you can get even more than your original crapton load of money estimate.
- sign
- Start "resetting" the seller's expectations. "market looks to be turning", "I think it could be softening", "little problem X is actually a HUGE PROBLEM, don't get stuck with this unsellable house"
- get an offer, any offer. and work the seller HARD to accept. "Buyer is looking at a lot of properties", "this is the best price in this market"
repeat
Real Estate agents work to sell houses. Not maximise prices. They have zero incentive to push harder for an extra 20-50k, all they want is the quick commission so they can move on to the next sale.
Recent example: My sister and husband. They were pushed hard to accept an early offer. They were given every reason why they should accept "absolute best offer", "market is turning" blah blah blah, fast forward 3 weeks and the place sold at auction for $150k over the original offer. Which means there were at least 2 buyers in the market willing to pay that much.
Lets say you visit two Real Estate Agents. One that talks alot of crap and one that is pure honest. You got one who gives you great confidence and the other says your house just sucks and won't go for much. Who do you go for?
You've described 4 agents. but you've described visiting two?
one that talks a lot of crap
one that is pure honest
one who gives you great confidence
one who says your house sucks and wont go for muchWho do i go for?
In my situation when I've had to sell. I DID MY RESEARCH. number 1. Go out and look at recent sales, look at what's being sold and the amounts. That will give you the best idea of two things. The good/bad agent(s) and the price for your place. If you bought the place you were in (most of us), how hard did the agent work you for a good price? it is worth spending days on this part of the research. how hard would you work for 50k? That's what finding the right agent is worth, make the time. Visit a lot of agents and DO NOT SIGN ANYTHING until you're comfortable.Also spend the time researching how to present your home. There is a heap of stuff on the net about how to present your house.
What area is your home?
I've worked in property my whole life.
It is not an "Agents" (actually a salespersons) job to get the highest price. It is their job to bring a willing buyer and a willing seller together. Sure in theory they sell themselves on the ability to get "the best price" (which is WRONG, but it is what the public demand they do)- but they don't have a crystal ball and their aren't magicians.
Back 15 or so years ago when I was in the front line listing and selling as a salesperson, I lost a number of potential listings I was hoping to secure because vendors told me "Sorry we liked you and your firm but XYZ offered us a better price" - They Offered you a better price and you are stupid enough to list with the agent who effectively "bought" your listing??? It made me go home and cry after work.
In many of the examples above the salesperson may have been WRONG in suggesting the first offer (or a low offer) was the best offer - but in truth it probably was the best offer at the time they presented it, if they knew something better was coming up they would wait (its just cruel and wrong to imply a salesperson would knowingly shaft their own client tens of thousands of dollars just to get a commission 2 days faster - This is Today Tonight type banter.
As a home seller you can refuse any offer and as a buyer you can offer any price and EXPECT the salesperson present your offer to the vendor.
When viewed from this perspective the guy in the middle (the agent) gets all the bad press - but really its just his/her job to bring a willing buyer and seller together. The actual price at the end of the day is irrelevant to them as they have no control over what a buyer will pay or what a seller will accept. All the "agent" can do is try to ensure he has got the VERY best price from the buyer - in reality this comes from listening and asking questions at the right time to try and flush the buyer out. (Many buyers do say odd things like "we'll see how we go, but we can always sell some shares if the vendor doesn't accept" or equally ill thought about statements when submitting their offer.)
The best "agent" is the one who can get the most number of buyers interested in your home in the shortest possible time. The buyers will offer a price and you as the seller will accept or decline it. The agent just has to get the two minds thinking in sync in order to get a deal together, no more, no less thats what they are there for.
its just cruel and wrong to imply a salesperson would knowingly shaft their own client tens of thousands of dollars just to get a commission 2 days faster
I am sympathetic with a lot of your post, I don't suggest real estate sales is easy, but come on. Re-read the original post. The agent presented an offer $70-$80k below the listed modest price from a related party 2days after the listing started then proceeded to suggest they they should re-think their asking price (after another offer $40k under asking).
The only explanations I can see are:
1) the agent is woefully incompetent, set vastly inflated price expectations and is clueless
2) the agent "bought" the listing as you suggest, then tried to close a deal to the benefit of the related party with some manipulation.Neither explanation deserves respect from the seller.
I also take issue with the opening statement:
"It is not an "Agents" (actually a salespersons) job to get the highest price. It is their job to bring a willing buyer and a willing seller together." This may well be what many agents believe, but the employer of the agent - the seller - wants the agent to act in their best interest, and that means working to achieve a high price.
If you reckon the job is just to grease the wheels and market, then charge a flat fee, not a percentage, and state that is the end of the service.
You need to test the agent! Get a friend to submit an offer and see if it makes it to you.
Now if I was this particular agent and the bosses daughter was interested, I wouldn't be submitting any offers through to you or talking down the property to perspective buyers, to ensure they don't offer. For example, "owner is not accepting any offers below the asking price.
Get your friend to submit a low ball offer and see what happens.
suntan,
You have missed the point completely.
Clearly this op has a concern about the agent and rightly so. The agent has discounted the price by $80k on something that the op was able to remedy in a short time frame. So now they have gained $80k in value on what seems is a minor issue. Staggering!
With all due respect, you sound exactly like a real estate Agent.
If I was in the op's position, I'd test the agent and discount every single word you have said.
You don't know any details, such as what the imperfections were that lowered the offer price, nor how long or what it took to remedy those imperfections.
Suntap has said nothing that's incorrect, and it's interesting that if someone reasonably explains the likely reality of a situation - they're suddenly a real estate agent. Am I a real estate agent for saying this too?
The agent brought an offer to the sellers (as they're required to do), disclosed the buyer's relationship (as they're required to do), and tried to facilitate a sale (as any real estate agent does). What part of the story makes the agent the bad guy?
Regardless of whether I know the 'imperfections' or not. The REA missed $80k worth of imperfections on their first evaluation, which initially makes them incompetent.
Then to all of a sudden 'find' $80k in faults when the boss's daughter wants to buy, it makes them unethical.
So you tell me what part of the story makes the agent a good guy?
For anyone to accept this is either naive, stupid or has skin in the agency game.
@skimmermilk:
Disregarding the fact that there's always two differing versions of a story:
It was the buyer who pointed out the faults, not the REA, and the wording of OP suggests the REA merely passed on the justification of the lower offer. It's also standard for a buyer to overstate defects (and vice-versa for a seller) because at the end of the day, they want to pay as little as possible. I'm sure you can appreciate that that's the nature of negotiation.As has been said, all the agent wants is a quick sale, and the facts of the story indicate they did all the diligence that was part of their job. If they were trying to be duplicitous, why bother mentioning the relationship of the buyer at all?
The facts of the OP's post suggest that the REA did their job - nothing more and nothing less. It's a natural inclination to take the side of the OP because they're the one posting their version here, and it's easy to one-dimensionalize the story, but looking at the objective facts and appreciating how the events would actually have played out doesn't suggest anything out of the ordinary in an average real estate sale.
Never ever ever does anything cosmetic reduce the selling price of a property below what its worth. For a property to drop 80k would mean your have some serious issues like the roof is falling or land subsidence. Report that real estate agent, and get a new one asap. They were obviously trying to take advantage of you.
At best they overvalued your property to get your business so they could con you with "relatives" trying to buy it which may have or not been conscious on their part, at worst this is a scam , and they are trying to actively scam you.
btw, you are right never to trust real estate agents, do your own research and only sell if you feel that is the best possible price you can get.
I'd have made the counter offer 2k over the listed price, just to p*ss them off as much as they did you.
Good Jenman article here on why agents under-quote and over-quote
Well, true, I hate RE agents, yes they just want the sale, 50k here, 50k there as long as they get the sale…..too true
But, if they get an offer and it's low ball (no matter who from) they are doing the right thing passing it on.
They have toYou counter offer and the REA tells you they walked away?
It's hardly the agents fault.
Again he told you…all good, just ignore it as a bargain hunter being cheeky. Shrug your shoulders and wait for the next offerWhen I bought, it was advertised offer over $440k.
Got it for 420, doesn't make me a bad person ;)
Give it a crack and see what happens I sayyes but pressuring/telling vendor to re-think price due to a low-baller in first 2 days on the market.
"the agent came around looking concerned and said she thought we should re-think the price we want as they were only thinking of offering around 70-80K under the list price"
Ah yes, memory like a goldfish I have, you are correct
At the end of the day, (back to the REA) who's the boss? You are :D
REA plays both sides of the coin - get the buyer to pay the most, and get a vendor to sign on with minimal price expectation.
I've heard this BS before; the whole spiel is to reinforce your belief that this agency has lots of contacts and high exposure, implying they're the best choice you made. The next bit about price is to drop your expectation by pointing out they've realised the price is beyond achievement.
Never drop the price. The REA have "sold" you their "expertise" when they did their price survey and they're implying they cannot deliver. They are playing you.
Not sure about the brisbane property market but in Sydney, if you don't get offers at least 50k over ur asking price don't sell, it's nuts down here, we have seen a few places around our area, each time they have sold at least 50k over wat they wanted. And it wasn't even a auction!
tell them to stop wasting your time.
You need a bit of a thick skin when buying or selling property. You need agents but never trust them. They would kill their mother to make money. Just work on your terms based on your own independent research of sales histories and be patient.
1) Instruct the agent that you will not accept offers below x amount.
2) Check listings in your local area for an idea of price (take into consideration land size, land aspect, proximity to amenities such as schools and shops)
3) Check RP Data for historical prices in your area.
4) Understand your property is worth as much as someone is willing to pay.REA are a tier above on the scumbag professions ladder, just a step above used car salesman.
Do your homework and research, compare and be patient!
Rules for selling property with Agents.
- Never trust what the agent says - trust yourself. Anything they tell you is to try get them a quicker sale, not get you a better price.
- Pick the price you need to sell and dont go below it, dont let them try tell you the price it should be - they will try everytime. The last property I sold I knew what was worth and sold it for the list price after the agent turned away probably a dozen low ballers trying to grab a bargain.
- Never go exclusive with one, tell them your happy to sign up to list the property however your not going exclusive - will keep them on their toes.
- Tell them not to bother you with any offers under X price or you'll find a new agent.
if you have it posted on realestate - thats the only place it needs to be.
why not post the link here and also get some free publicity for it too.
agents only care for the sale - just keep HOLDING OUT!!
What's wrong with making a low ball offer?
Price is whatever they are willing to offer. If you don't want to accept then just say no. Doesn't anyone who is looking at buying looking for the best price?
Tell him it's your house and your price
If he can't sell it at ur asking price to cancel the contractPeople need to stop accepting exclusivity periods. Its rubbish. Tell the agent if they are good at what they do then it wont be an issue.
Also - consider using incentive to make the agent work for their commission. Take the % commission amount. place it at your desired value. Minus a percent (or part of a percent) if they are lower by say 50k or add a percent if they are over by 100k (varies depending on value / market). This will make your agent work for more money.
If you are located in Sydney (where the demand outstrips supply) I would cancel the contract with the Real Estate Agent altogether and do it yourself. It is very easy – I actually don’t know why people still use agents.
My boyfriend paid around $1000 to list his property on Realestate.com.au and Domain.com.au (which is all agents do anyway). We held 3-4 inspections and received around 10 offers. We accepted the best offer and was done with it. The whole process took 2 weeks and we saved around $20,000 in commission.
Tips:
• Go on onthehouse.com.au to research the price or better yet pay to get a proper report done.
• Make sure that you have a Sale of Contract ready at the inspection – ask your solicitor to arrange this.
• Make sure your solicitor operates a trust account to hold the deposit.I thought you had to be a REA to list properties on realestate.com.au?
this is quoted from realestate.com.au
"All property owners must advertise their properties by enlisting the services of a licensed real estate agent. "
and
"I understand that I need to hold a registered real estate licence to advertise on your sites *"Yes you do. But you list your property through a third party such as "Buymyplace.com.au", who are licenced and presumably have an agreement with RealEstate.com.au and Domain.com.au to allow listings by owners.
OP, I feel for you.
Please make sure you get the right ad category you paid for.
Do not feel pressured to counter.
I recently sold on the GC and had 2 lowish offers that I didn't counter at all.
If you are not comfortable with where the offer is starting, you can counter with the asking price and never reveal the price you are willing to take to the REA.
The REA had an opportunity to appraise the house and put a price on it to get you to sign - presumably nothing has changed so if the feedback is that people do not like this that or the other, let the REA know that the house is what it is and no, you won't be discounting by 20K so Mrs Jones can extend the dining area to fit her large table in etc.
Think of a successful Auction - the underbidders drop out along the way - that is what you are getting now. Think of the successful bidder as the Premium Buyer - that is what you want!!
its called conditioning.
and maybe your property is not worth as much as you think it is?
Definitely sounds a little suss if the buyer is known to the RE Agent. Having said that, as someone who trades property on a regular basis, I also know for a fact that almost all owners think their house is worth more than it actually is. Natural thing to happen when emotions are involved.
When you chose your agent, did you check out the sales data to see how other comparable homes sold in your area? Was it in line with what your RE Agent appraised it at? Most agents have the gift of the gab and very often quote you a desirable price in hope of winning your business but your home may not be worth anywhere near what you are being told.
To see if the offers are really in fact under value, approach any other RE Agent in the area and just ask for a list of all home sales in the area over the past 3 mths…and compare all the features (land size, house size, house features etc) with yours and see what similar homes are selling for. This is really the only way to figure out what your home is worth..
On the other hand, you may be lucky say on auction day (if you were doing an auction campaign) that you have a buyer that gets caught up in the whole bidding process or is emotionally attached to the home for a specific reason (eg. close to their mum and dads) and is willing to pay well above what the home is worth in which case you get a good sale price. The only time you will get more than what it should be valued at is where the block has development potential or the buyer has a specific need for the house in that location.
But check out the most recent sales data for the best indication of worth…this is how Valuers value homes.
what is best way to get recent sale data?
Is there a free public source that you can get from government or need to pay rpdata or someone.
Government can easily solve this problem if they just make all data available to public.Unfortunately its a paid service…we pay about $3500/quarter for full access to SA data but if you simply ask any RE Agent, they should be able to print it out for you for free. Just pretend you're looking to buy in the area and want a print out of ALL the sales over the past quarter. Make sure you clearly specify ALL sales data otherwsie they might enter in certain filters and you might not get a full representation of what you're after (i.e. they might filter it to only return results of homes on <300m2 allotments or houses <150m2 in living area)
If its in SA, i'm happy to do it for you but I suspect you're inter-state in which case i wouldn't be any help :-)
many estate agents engage in dodgy practices and have anterior motives, but who is going to take action against them….no-one
I found the opposite when searching for a house, in Melbourne western outer suburbs, not exactly pricey or high demand. They would either state "offers above xxx" or a range xxx to yyy. However both of these were way under what they would accept, just to draw interest.
There was a house for "offers above $335k", only 2 people went to view. We offered $365k, no conditions, in writing, provided a copy of our mortgage offer, offered 20% deposit and stated we could settle any time (as we were renting).
The retarded agent told us he would recommend the seller didn't accept, which they didn't!! Then tried to encourage us to go to the auction which was over a month later. We told him to bugger off and actually bought another house in the mean time and settled in just 30 days, actually before the auction. On auction day, the house went for just $340k!! So he lost the seller $25k and annoyed us in the process meaning we won't touch that agency again.
We got so annoyed with under valuing, we ended up stating to other agents that we weren't interested in any houses where they wouldn't accept an offer in the advertised range.
That sounds like the buyer rejected the offer.
Real estate agents just want to sell the place, if you offered around what the place is worth that fine with them.
Ok it's been on the market for 2 days with 2 individual inspections and you have had 2 offers.
I would have an open house first, it sounds like you shouldn't be worried.
Let's not forget a real estate agents job is to sell houses and it has nothing to do with getting you the 'best' price. If they sell houses quickly they still make money and can start working on selling the next house. Only you control what price you eventually get and this usually depends on how long you are prepared to wait.
It shouldn't surprise you that real estate agents also build property portfolio's. In this case they probably told their relative that it was on the market and to offer a lower price. And they did.
You did the right thing in holding out. Wait for at least a month before taking crazy offers. Most houses listed at a reasonable market price usually sell in the first two weeks.
sold my house 2 years ago - trust me - they just want the sale and don't want to work that hard for it! They're trying to convince you you're selling for top price and the buyer that they are paying a bargain LOL
Mine spent ages on the market, but I eventually got the price. The agent said I wasnt being realistic…I told her to quote - I'm not in any rush to sell, in fact I'd have to rent while building. It would have to be a good price to convince me….eventually they "talked" me into selling ;)
Apparently I didnt play the bargaining game fairly as I wouldn't meet him halfway from my sell price. I ended up dropping 3-4K - certainly not the 40K discount they were "offering"Sales games.
Be firm and abrupt with them.
They'll change their tone.
"If you don't think it will sell for that price - I'm happy to go with another agent - just let me know if it's not worth your time"
nice line.
Get a copy of "The 18 Worst Mistakes made by Home-Sellers" (free booklet)
http://www.jenman.com.au/BS_Sellers.phpIf you don't get the price you're after with the current agent/contract, go with a Jenman approved agent (if available in your area).
Lowballers exist everywhere these days…
It looks like the real estate agency might be interested in the property, hence the low balling to maximise profits. I suggest you quickly move to another company just to be safe.