Buying at Auction - a recent experience with a questionable agent

I don't really understand what you are saying.

If you had bid high enough and over the vendor bid, then you might have secured the property. You didn't and the property passed in.

Frankly, after that, the vendor can do whatever they want. Including selling it to someone else that might have offered less than you. If their agent didn't do as well as they could have from your point of view, then that doesn't mean much because your point of view doesn't mean much at all. Its an issue between the agent and the vendor. The agent doesn't owe you anything.

I fail to see the issue here, apart from you being upset that you didn't get the property. Fair enough, I'd be disappointed to. But I wouldn't be going around trying to blame someone else.

 

Thatbum
You are completely missing the point!

I described a situation. Then proposed a mitigation method for 'the next one'. I simply sought other's views on that particular point.

The emotional side that you (and others) are raising comes from yourselves and not the question I asked at the start of this thread. I think you definitely have missed the point of this thread.

 

You should have offered more money to secure it!

 

Joynz,
You should have read the question at the start of this thread. The point isn't so much about any particular house (there is always another one) as it is about handling an agent.

 

I'm not missing the point. You've repeated a few times now that apparently the agent has done something deceptive or dodgy. I'm not convinced they have.

The answer to your original question has been given in multiple replies - overwhelmingly it is "bid higher". Otherwise, the only other thing I can think of is to make the agent like you so they're more willing to deal with you after its passed in. Obviously that didn't happen in this case.

 

I get that the problem is that the agent didn't contact you. But maybe you didn't seem like you would raise your offer.

You had your chance and you didn't take it so you missed out.

 

Thatbum

You still haven't answered the original question I posed. I'm not bothered in the slightest that I haven't convinced you of anything, it's of no consequence; - if you can't understand what 'passed in' means and you don't get the concept of lying (the phone calls he allegedly tried to make to the other bidder and myself) then you can't get the reasoning behind the question.

 

1. There cant be 2 highest bidders. You are the 2nd highest bidder and the agent chose to negotiate with the highest bidder.

2. Your new tactic can be used (there was an auction where dad and daughter bid on the same auction), however the highest price will likely win you the auction, rather then thhe strategy you proposed.

 

@seven, is this the real reason for your original post?

If so, why not bring along 8 mates as well who all register. In this way, you would have 10 people 'working' for you.

If it is legal (and I assume it isn't), imagine if everyone did that

 

I actually attended an auction where something like this happened! It was hilariously amateurish.

 

... and you feel this is the best way to proceed?

 

You played a game and lost, if you won would you be saying how bad an agent did as he didn't get the best possible price?

Lets say you told the vendor your highest was 500k but really you could go to 600k. Come auction day the following happened;

You bid 450k, other bid 475k, you bid 500k (keeping it simple)... Agent calls it 3x and no one bids so does a vendor bid of 550k (10% as per OP) you don't bid and someone bidded 560k which it passes in at.

Now the perception you have created is that you are more than 10% off what is currently being offered and being passed in and you are 20% above what you max price was (500k). The underbidder (the real one) increases their offer to 580k. When you spoke to them as they walked out it wasn't done but they didn't tell you the truth (why would they, you are their competition). The agent called other buyers who were talking mid 500s and no better offer was received or they received another offer and sold for 590k.

If you play hard you either win hard to lose hard, when I was buying last year I played hard and lost. I was aiming for 'high 500s' and was going back and forth with contracts at low 600s with the vendors wanting mid 600s. It sold for just short of that but I wasn't successful because I was trying to secure it for less than 610k. As it being an IP I didn't care if I won it or lost it, I would be glad if I did get it for 610k I would still be happy with it at 650k however there is always another one around the corner. I ended up purchasing something for about 720k a couple months later (completely different property with 3x more land and closer to city). So I could of beaten the actual bidder and I knew I could at the time however when you play games to try and get it less you can end up with nothing.

This might be hard to read but as everyone has written if you wanted it you should of paid/bidded more. It is no one else's fault besides yourself and until you realise you are in control of your destination you will keep looking elsewhere to blame others and not getting the property.

 

Hi Will,

Some of what you are saying about my experience is pure assumption on your part. You 'story' does not really apply to me. I suggest you read through this thread again (carefully).

I will add another 'fact' to this thread. I was not particularly emotionally attached to this IP. One thing I have learnt is that there is ALWAYS another one.

The major incorrect assumption I made is that the agent was going to 'try' to get the best possible price for the vendor. I am going to try and mitigate against this the next time with what I have posted on this thread but at a PC members suggestion put a slight 'twist' (he has used this for the same reason) to it to weed out a rouge agent.

This forum is a great resource but I understand why some members prefer private contact rather than posting.

 

I had to make assumptions as you gave no facts of what actually happened which is biased from your side.

You didn't win and if you wanted it you should of paid/bidded more, you win some and lose some. REA don't need to get the best price but best deal, I have worked as a REA and I know that we had sold properties to people paying less because the deal was better.

Until you know the full story it is hard to understand you may feel the agent did the dodgy and you are enitlted to your opinion but pretty much most people here are not seeing dodgy things happening by the REA but can see dodgy things with your future plans.

Best of luck.

 

I'm curious - did you keep in contact with the Highest bidder after the auction? I know he got the brush off the same as you but you seem convinced that there is no way he could have gone back that afternoon and bought it.

Anyway to move forward and work out a strategy going forward for similar circumstances I think you need to work within the confines of the auction agreement which generally doesn't allow you both to register.

If you genuinely want something then you need to be that pushy person after the auction ends. Don't take the brush off and get an offer in writing put down before someone else does.

As you say there are other deals to be had so your strategy will evolve over time to be more effective at each auction. Work on what can make a lower than Vendor bid offer after auction more attractive to the seller. This will involve pre auction work with the REA to work out motivations. The seller may be attracted to terms that are not the standard auction terms - longer settlement, shorter settlement etc etc

 

Seems to be that everyone else is assuming except for the OP. He knows that the highest bidder got brushed off and because there is now 'no trace' of the place on the internet, then that must mean that the place was sold for a lot less than the vendor wanted.

It's the agents job to sell the house for the price and terms that the vendor wants.

TBH, if I could sell my place to person A who is a straight shooter, friendly and will love the home for a little less, or person B, who is going to low ball me at auction, play games with getting other people to register and have it as an investment - the person A better start packing their things.

One last thing, if I was going to auction, and before the auction started the RE agent said that they have 5 registered bidders and 2 of them are you (well representing you), then my expectations of what i might get will be increased. Especially when part of your plan is to make is seem like you both have the interest/money/ability/desire to buy the property - even worse if you are the only 2!

Tread carefully!

 

I like this! The agents liked dealing with us for buying our home... We were genuine, showed we loved the home. (And I had a long 30 odd minute chat with that agent in another open home the week before, that open had no potential buyers attend). So I had an existing connection with that agent. Note that it didn't influence my buying decision or the offer we made on this house though. We offered what we were prepared to pay, it took around 3 weeks for the vendors to accept our offer. Finally they did, it was just before Christmas, and our cooling off period finished 31st Dec. It all worked out for us.

For B.... The person who continually asks for a discount on my short term rental... No sorry. I do not want you as a guest!

 

You're a bit snippy, aren't you? You're proposing a solution to a problem that doesn't exist is what everyone else is trying to get at... bid enough at auction to show you're interested, and maybe you'd have got a call. And thatbum knows more than enough about the law, you should read his previous posts and show a little more respect if you want some in return