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A mistake I made (multioffer situation)

Discussion in 'The Buying & Selling Process' started by monty, 7th Mar, 2016.

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  1. monty

    monty Well-Known Member

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    Recently I unsuccesfully tried to buy a house in Brisbane. After the first open I submitted an offer that I thought was at the low end of market value: a reasonable offer that showed I was serious that also allowed me some room to move in later negotiations. The agent said they would keep my offer in mind but they would be considering offers with the owner several days later (after a mid-week open).

    On the Thursday after the open I was phoned around mid-day by the agent saying there were several offers in play and that I could submit a final offer before the owners considered all offers at 4:30pm that afternoon. I increased my offer on the phone right away. This is where I think I made a mistake. The agent could now use my increased offer in the 4 hours until the meeting with the owners as leverage to increase other buyers bids. What I should have done is say I would think about it and then called them just before 4:30pm to submit my final offer. That way the agent had less time to use my offer to leverage other buyers to a higher offer and I might get to be the last bidder.
     
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  2. luckystar

    luckystar Well-Known Member

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    How do you even for sure there were other offers? Did you see them?
     
  3. monty

    monty Well-Known Member

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    Well I didn't get the property which is now sold so there was atleast one better offer than mine. After the property was sold the agent told me there were seven offers.
     
    Last edited: 7th Mar, 2016
    Perthguy likes this.
  4. Tim & Chrissy

    Tim & Chrissy Well-Known Member

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    We were recently in this situation in QLD however the agent provided written notice of the multiple offers situation and we also had to put or best and final offer in writing.
     
  5. monty

    monty Well-Known Member

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    That's the situation I in was in as well. I would have had to submit the offer in writing after talking to the agent on the phone. There was also a multioffer form they asked me to sign.
     
  6. wylie

    wylie Moderator Staff Member

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    What suburb (if you are happy to share)?
     
  7. monty

    monty Well-Known Member

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    Mitchelton
     
  8. Tim & Chrissy

    Tim & Chrissy Well-Known Member

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    Our experience was it was a pretty formal multiple offers notification, not just the agent informing us via phone.

    They cannot tell you who or what the offers were,that would go completely against the sellers best interests.
     
  9. vbplease

    vbplease Well-Known Member

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    This shouldn't happen. It's highly unethical of the agent. They're supposed to keep all offers strictly confidential.
     
  10. legallyblonde

    legallyblonde Well-Known Member

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    They cannot disclosethe amount, but surely they can say an offer was been increased?
    T
     
  11. monty

    monty Well-Known Member

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    I don't think they would have mentioned offer values specifically - they never did to me - but they may have given an indication if an offer was the highest or not. Are they not allowed to do this either?
     
  12. vbplease

    vbplease Well-Known Member

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    No, they shouldn't be allowed to disclose any details at all about the other offers. Keeps it fair for everyone.
     
  13. monty

    monty Well-Known Member

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    Well if the agent doesn't give any hints at where your offer is at (and they didn't for me) it doesn't matter if you submit your offer first or last. Still I wouldn't mind being last. You never know what the agent might let slip.
     
  14. luckystar

    luckystar Well-Known Member

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    So how do you know they aren't lying?
     
  15. vbplease

    vbplease Well-Known Member

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  16. Tim & Chrissy

    Tim & Chrissy Well-Known Member

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    You don't, but what other options are there but to put your best offer forward or walk away from the deal?
     
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  17. luckystar

    luckystar Well-Known Member

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  18. willair

    willair Well-Known Member Premium Member

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    It may not have been a better offer,some people pay in their own cash,all it means is that everyone has a different idea on value and every offer is different,just look at the post to pick the price of a property in Moorooka,and the range of quotes posted and the scaleable range that was posted,some where 80-90k out..
     
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  19. vbplease

    vbplease Well-Known Member

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    No.

    In my experience since the 'multiple offer form' has been introduced recently it has been working very well.

    The problem usually lies with the buyer nagging the agent for info about other offers. The whole point is its all confidential.

    If you do come across an agent who says there is a higher offer once you've filled in the form then take them to the REIQ... or at least tell them to go away, because if they're being unethical to other buyers by disclosing their offers then you shouldn't trust them by increasing your offer.
     
  20. SmashedEconomy

    SmashedEconomy Active Member

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    you were done like a dinner. Oldest trick in the book. Chalk it up.