Should Real Estate Agents get back to Propsective Buyers on the outcome of the Offer submitted?

aspirepranesh on 20/06/2020 - 12:45
Last edited 20/06/2020 - 13:17

Howdy peeps,

Hope everyone is keeping safe. I am wondering if anyone could share some insight on the purchase process.

My partner and I have been saving up to purchase a 2BR apartment for us to live in and considering the interest rates, we started inspecting a few places and were in 2 minds about one place.

Straight up advised the agent that we dont see value in the apartment for the asking price (450000+) and don't want to waste their time by putting in an offer which is below their asking price.

A week later they rang me and advised me that the owner is keen to sell and is looking at all offers. So we put in $415000 in writing stating why that is a reasonable offer but we thought we can go to 425000 if need be. A week later, no response. We did extensive research online for similar properties sold before we submitted the offer based on thr condition of the place as is.

I called up to see the feedback and got told that the seller had rejected the offer 5 days prior, but they didnt even bother to advise us. I got a little annoyed and advised them that they should have atleast got back to me about the rejection. They asked for a revised offer and we put in $425000.and 4 days later.. Still no response.

We are not desperate to get it, but its a good location and we can spend a bit to upgrade it. Wont lose heart if we don't get it.

But what is the standard process of agents as we are new to this?

Am I expecting a lot from these real estate agents?

Btw, the property has been in the market for a month with no other offers. Given the condition of the market, I would assume they would follow up on every propsective buyer!

A friend of ours owns the exact same layout on the same floor that they purchased in a much better condition with new floors for $445K in June 2019. Given the condition of the unit, the state of the market and the work that needs to be done, $20k difference is too unrealistic?

On a side note, we rent in the same complex, but different building and know multiple owners who are friends with us and know the going rate here. I know the tenants who are currently in the apartment and they have advised us that no one else has inspected the place and the real estate agent is pushing for them to buy it for $435000 :)

Financial

Comments

  • ozhunter on 20/06/2020 - 13:02
    +2

    No. If they liked your offer, they would get back to you.

    • aspirepranesh on 20/06/2020 - 13:06

      Fair enough. I put in the revised offer based on the owners expectation when I spoke to the agent second time around.

      Oh well..

      • ozhunter on 20/06/2020 - 13:09
        +1

        They are probably expecting $440k+. They seem to think your offer is too low and not worth a reply.

        Similar to those low-ballers on gumtree.

        They asked for a revised offer and we put in $425000.and 4 days later.. Still no response.

        On the other hand, they could be busy/sick/lazy or some other reason. They could be entertaining other offers from potential buyers.

        If you are really keen on it, it might by annoying, but follow up on it to get a confirmed yes or no.

        • aspirepranesh on 20/06/2020 - 13:12

          You're right when it comes to low ball offers. They initially were expecting $475000, which was really unrealistic.

          A friend of ours owns the exact same layout on the same floor that they purchased in a much better condition with new floors for $445K in June 2019. Given the condition of the unit, the state of the market and the work that needs to be done, $20k difference is too unrealistic?

          On a side note, we rent in the same complex, but different building and know multiple owners who are friends with us and we know the going rate here as well as the state of multiple other units. I also know the tenants who are currently in the apartment we put in the offer for and they have advised us that no one else has inspected the place and the real estate agent is pushing for them to buy it for $435000 :)

          • [Deactivated] on 20/06/2020 - 13:39
            +1

            @aspirepranesh: It's not June 2019, and the estate agent probably doesn't care about a property that's worth $450k, likely well down on their list of priorities. Just be prepared to walk away.

            • aspirepranesh on 20/06/2020 - 13:52

              @[Deactivated]: I second your thought process. I have convinced my partner to be ready to walk away, but its so stupid that they don't do the basics considering the market conditions. Lol

  • Hithere on 20/06/2020 - 13:33
    +5

    Never trust a real estate agent to look after anyone but themselves.

    They play potential buyers off against mythical buyers.

    Put your offer in writing and tell the estate agent that they have 3 days to get back to you or you'll walk, and be prepared to do so.

    • TheMindsetTraveller on 20/06/2020 - 14:12
      +2

      Yes but no, a buyer can swing things in their favor IF a buyer is able to show you are ready, willing and able to commit.

      As I am in NSW, not only would I put in writing but with an offer to include a 66W certificate if my offer is approved. (The 66W certificate means I am waiving my cooling off rights - this shows I am prepared to buy without conditions eg waiting for my loan to approve or waiting for a building report). I would also advise that the such offer is only valid until COB next working day to put some pressure on them.

      • aspirepranesh on 20/06/2020 - 14:36

        I made the mistake of not putting in a time frame, but did advise them that I have already got pre approval through my bank.

        Wonder if I should go back to them and force a timeframe.

        • [Deactivated] on 20/06/2020 - 15:25

          Go back, but let your girlfriend handle things 🤦‍♂️

        • TheMindsetTraveller on 20/06/2020 - 15:31
          +1

          The issue is not putting in a time frame, what you want to show an agent is that you are ready to sign the contract now (the second they accept your offer).

          Just because you have a pre-approval, do you need to review the building/strata/pest report, has your solicitor looked at the contract, does it need changing and are those changes approved in writing by the vendor? Do you need to check if there are any nearby potential developments (or applications on foot) that could affect this property?

          At the end of the day, unless you are ready to sign the dotted line, an offer with a time frame is pretty useless in my experience (and agents know this). It's like telling your long term girlfriend that you love her and will marry her one day, but without a ring, it's just an ongoing relationship and anyone can walk away. Sure having a ring doesn't guarantee a life forever either but at least its a solid position to be in.

          • aspirepranesh on 20/06/2020 - 15:45
            +1

            @TheMindsetTraveller: I hear ya!

            Having known the tenants in that apartment and the neighbours and people on the body corp, we are ready to commit if they respond.

            The funny thing is, the agent owns an apartment in thr complex and is on the body corp and knows the same people we know who have bought apartments through him and knows we are not stuffing around. We have been very clear about it from the start.

            • elgrande on 20/06/2020 - 17:01

              @aspirepranesh:

              The funny thing is, the agent owns an apartment in thr complex 

              Maybe thats your answer. If he sells to you for low his property also drops.

            • newreg1 on 21/06/2020 - 05:26

              @aspirepranesh: Maybe he doesn't particularly care for you and isn't excited for you living in the same complex..

  • Hithere on 20/06/2020 - 15:00
    +1

    Wonder if I should go back to them and force a timeframe.

    If you don't the estate agent will stuff you around, try to get you to increase your offer, and basically treat you at a buyer they can fall back on if no one else wants the property.

    You have to lead the sale, tell the agent what you want, when you want it, and how much you will pay.

    Be prepared to walk away if they want to keep playing their silly games.

    • aspirepranesh on 20/06/2020 - 15:47

      I will take this on. I am gonna leave it for an other couple of days so that I don't sound desperate and send a follow up email saying I need a decision.

  • Seraphin7 on 20/06/2020 - 16:07
    +1

    I know the deliberate approach of some agents is to just not bother chasing buyers.

    They literally let the buyers chase them to create an atmosphere that they're not desperate to sell and if you want the property you'll need to bid up to get it (as often as not against yourself).

    I've personally experienced this on at least two occasions.

    On the first, we put in an offer and didn't hear anything at all for three weeks … then they come looking for us. Without getting into all the details, by they time they got back to us we were no longer in a position to buy at all. Over the next couple of weeks they sold the property for significantly less than we were prepared to pay had they wanted to negotiate three weeks earlier.

    On the second, the agent couldn't even be bothered to send me out a sale contract. Rang the bloke up to discuss the property, got fobbed off as "he was busy at the time" and got told to come to the next inspection later in the week. Turned up to the inspection, requested a contract, gave my email and nothing. About six weeks later the property was taken off the market.

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