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accepted an offer then higher one came in

Discussion in 'General Property Chat' started by Keen novice, 22nd May, 2016.

  1. Keen novice

    Keen novice Member

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    What is the protocol? My bro had asking price of 815K for his PPOR and accepted an offer yesterday of 810K. Someone came forward today and offered 825K!!! What should he do? Does he just stick with the 810K because he accepted yesterday? Help please!!!!

    Cheers,
    Keen
     
  2. Bran

    Bran Well-Known Member

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    Signed on the dotted line?
     
  3. Keen novice

    Keen novice Member

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    Nothing signed as yet... just verbal
     
  4. Bran

    Bran Well-Known Member

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    Then it means nothing, right? This is why real estate agents (should) hot foot it to get signatures on paper.
     
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  5. Ardi

    Ardi Well-Known Member

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    Go for gold i say!
     
  6. Scott No Mates

    Scott No Mates Well-Known Member

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    Who ever crosses the agent's palm with silver and the signed contract first wins. Not gazumped just slow to act.

    There is no agreement to break until he has one to sign.
     
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  7. D.T.

    D.T. Adelaide Property Manager Business Member

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    What state was it in?

    In WA / SA , no dice. In NSW / ACT, go for it.
     
  8. monalisa

    monalisa Well-Known Member Premium Member

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    What is the agent's view of the second buyer? I think it comes down to how confident you are in either of the buyers completing the deal.

    Has the agent asked the first buyer if they want to counter?

    How is the market where your brother is selling?

    A few years ago we bought a house where our offer was less than the other buyer, but the agent trusted us to complete the deal.
     
    Last edited: 22nd May, 2016
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  9. Cactus

    Cactus Well-Known Member

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    In Vic, no contract of sale till evidenced in writing
     
  10. Keen novice

    Keen novice Member

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    It is in nsw mid north coast
     
  11. standtall

    standtall Well-Known Member

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    Just be honest with the first buyer and also let the second buyer know of the first offer (if not already done). Both will understand and this will also keep the higher of the two honest through the process.
     
  12. D.T.

    D.T. Adelaide Property Manager Business Member

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    You risk scaring both buyers away if both say, "nah the other can have it then".

    Takes good negotiating skills at times.
     
  13. standtall

    standtall Well-Known Member

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    Agree - good negotiating skills is exactly the reason agent gets paid otherwise banners are cheap :)
     
  14. Foxdan

    Foxdan Well-Known Member

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    Why would you tell the higher buyer that there is another buyer 15k below if there is no signed contract signed? It's a negotiation to get the highest price for yourself with a legal contract, not a warm fuzzy hug festival.
     
  15. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    The other thing is to look at the conditions of each offer. The 815 might be cash with a settlement date that is more suitable. The 825 might be conditional on the sale of their own house which can delay it and make it fall over.
     
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  16. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    I wouldn't tell them the amount, just that there was another offer.
     
  17. standtall

    standtall Well-Known Member

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    @Foxdan
     
  18. Connor

    Connor Well-Known Member

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    First thing I'd do is get the offers in writing and preferable on a sales contract. See exactly what they are, terms, settlement, finance clause etc..
    Then go from there..

    Agent should be on to this already..
     
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  19. Dmarkw

    Dmarkw Well-Known Member

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    Exactly. Price is only part of the equation.
    Now you want to get closest to the higher price with as little conditions as possible.

    I agree with Westminister's comment - I wouldn't tell either the other price, just that there's a second offer on the table and to present their offer in a contract.
     
  20. Bryan Loughnan

    Bryan Loughnan Well-Known Member

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    Confidence to complete is vital. We were the 'lower' bidder in such a situation a little while ago. Unfortunately for the vendor they 'accepted' the higher price - fortunately for our client - when that purchaser wasn't able to complete we were able to reduce our offer by a further $5k but provided the confidence we would complete. Steep learning curve for that vendor - great win for us.
     
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