Agent won’t allow inspection or to make an offer

Hi all,

It’s a long story but I’ll try keep it brief. There was a house that was listed locally to us that ticked every box. My partner called him the day after it was listed and left a message about wanting to arrange a time to look at it. After 3 more calls the following day he finally called her back and said the banks already accepting an offer. That’s it. No possibility of making a offer or inspecting. It was listed in the paper that weekend so I called and I got the same story.

It was a repossessed house so I had my accountant do a check on who had finance interest and it was Commonwealth. I contacted them and they couldn’t do anything on their end but said it should still be up for offer as it was only listed last week. I emailed the agent requesting that and I didn’t hear back from him.

I’m new at this game but is that common for when it’s a bank repossession? Are Realestate agents allowed to sell it to their friends (my assumption) and tell everyone else it’s already under offer so they can’t inspect or make an offer?

Thanks in advance for any advice

 

What state is the property in? A mortgagee In possession is still required to get the highest price for the property and normally it would go to auction. If it doesn’t go to auction they need written proof that the sales agent recommended to sell by private treaty and the reasons why. And they need to do a marketing campaign. A mortgagee cant just sell a property for any amount or to the first person who puts in offer in.

And no a real estate agent can’t sell it to his friends but unfortunately they do and they get away with it.

It seems highly unlikely that they would have sold it that quickly and without an auction unless the offer received was well over the reserve price.

 

Property is in QLD.

It was listed online with a good price, hence why we were so quick to jump on it. We live 2km from where it is so both drove past it the morning after we saw it listed, that was the same day the sign went up and the following day the REA called back and said that the bank was already accepting an offer and inspecting or offering ourselves was a waste of time.

On the Saturday, 3 days later, it was listed in the real estate section of the paper so I called him myself as my partner didn’t think he took her seriously (didn’t get any of her details) and I got told the same story from him. So from the banks point of view he’s done everything correctly in that the sign is up, it was advertised in the paper and online but seems to only have 1 offer on the house.

He ignored my email then after making a complaint to the REA national company website I get the generic email saying he hasn’t stopped anyone from looking and the buyers were there before the property hit the market and no one else has made an offer.

I’m guessing this will be one of those REA who sells it to a friend and get away with it

 

Is there any way to get the names of the current owners? I'd be tempted to contact them to let them know TBH

 

The reality is that if a contract has been signed, that is the end of the matter. If the owner and the bank agreed to the price, then probably they have all acted legally.
Marg

 

The owner doesn't need to agree to the price for a repossessed house. It's all up to the bank. The owner could potentially take action against the bank if it can be established they didn't make a reasonable effort to sell it for the best price they could

 

I had this happen to me. Was trying to buy a State government owned property. Called the first day and asked to view at earliest time. Agent was reluctant but pushed to meet him at 3pm. Got there at 2.30pm and agent was showing someone already and as i walked in he said he has already taken an offer. I have no doubt it was a friend/family/associate of the agent. Not much you can do. I just moved on but was disappointed in the system.

 

In my experience, it is almost always that the agent has sold to a friend or relative. They may have given them the heads up 2-3 weeks prior to it hitting the market (being advertised). Just move on and next time make sure you are ahead of the pack, like this purchaser was.

 

I'd push the issue if it were me, not to try and get the property, that ships likely sailed but if something underhand has gone on (heads up to friend/family or napped up himself) think of the poor people the bank has foreclosed on. If it has been "sold" for way under true value then the owners have missed out on clearing a bigger portion of their debt (all hypothetical of course not knowing why it's a foreclosure).

I know if my house was repossessed and a bank forced a sale and I found out it sold for a lot less than fair market, then I'd be first in line asking the questions, unfortunately not everyone is savvy enough to be on top of that.

 

I agree - that's what I thought too. I'd definitely want to know if it was me

 

Basically insider trading, do feel sorry for the owners, theft really.

 

They should only sell these type of properties by public auction.

 

The problem there is, in a slowing market, the agents starts with a high vendor bid and the auction dies right there. They say it's no problem, they'll market it after the auction.

But they don't really market it. They leave it alone for a couple of weeks. Now they've set an expectation that there really is no interest so when they do sell it to someone they know, they can get away with selling it reeeeaaallly cheap...

 

I called fair trading. They said if the bank has accepted an offer it's all above board. They had a care factor of zero. REIQ don't handle complaints anymore. It's all a very flawed system.

I have acquired the number of the owner and I called him 2 days after it went on the market after the REA said the bank was already accepting an offer. He said that's incorrect. That said, he technically may not know as he isn't the vendor. The bank is.
I haven't called him again as I don't feel I'll get a straight answer and figure there's nothing he can do. If he's declaring bankruptcy anyway (I don't know if he is or not) it doesn't matter what they get for the house.

Try finding someone at the Commonwealth Bank who is in that department. I've called and emailed. I had my accountant contact his contact there and getting through to the right person is impossible. They told me to make a complaint to the REA head office.

How much more ahead can we be if we're calling before the sign is already out the front?
Only way I feel I could've got this one is if I was a family/friend of the REA.

 

What are you hoping to achieve?
If a contract has been signed, you can’t overturn it.
There are many posts on this forum about buying a property “off market” or getting notified of upcoming listings.
Marg

 

REIQ is an employer organisation not a regulator.

 

A complaint about a bank mortgagee sale may be worth lodging with the with Australian Financial Complaint Authority (AFCA). I just made a complaint and received substantial shut up and go away money.

 

waiting for a sign to go up is way too slow.

Yes, or as @Marg4000 said above, read up on how to get "off-market or pre-market" listings. For example, as Buyers Agents, we are "friends" of REAs and find out about upcoming properties 2-3 weeks or more ahead of the general public. We're often buying or researching about to be for sale property way ahead of the first Open.

 

Onus should be on selling the property at auction, with a bank representative with authority at the auction, similar to what State Trustees do with their auctions.