presented offer but real estate agent not presenting to vendor

In WA an offer is presented on a specific form and it's signed and given to the agent. The vendor then agrees or disagrees and signs and the agent returns it back. Once the offer is accepted no gazumping after that.

Today in Newcastle, NSW, I looked at a property that requires a minimum $300k renovation and is priced at over a million. I looked at this property with a friend of mine who has 12 properties in Newcastle and knows the suburb like nobody else, and a very similar one sold a few weeks ago just around the corner for $800k. The asking price is bat crazy and is reflected by first home opening and hardly anyone came.

I put in a reasonable email offer with a 24 hour clause and was surprised that the agent knocked it back.

I think the agents has over promised the vendor in order to get a an exclusive agreement and I do not believe that the real estate agent is passing my offer through to the vendor.

So how often does that occur in Newcastle?

 

Or could be that the vendor has given very clear instructions to the RE.... I've done that before. Ie. Instructed RE to automatically reject any offer below a certain amount &/or with certain conditions.

 

Yes but how does one check? Makes business very unprofessional and to me it's like doing business with children.

If you are publicly advertising your house for sale, one should have the courtesy to respond to somebody who is offering to paying you $800k?

Do people not realise what sums are involved.

Why are people so incredibly silly with houses. The offers people make these days indebt them for 30 years of life and we have these games being played by real estate agents and vendors? People need to grow some bells.

So is there a way to check or are the real estate agents completely unregulated Cowboys.?

It's a laugh that WA is ahead of NSW in ethics and professionalism?

 

Depending on what happens next It might be that he is a good negotiator.

 

He's probably telling his friiends on another forum about the cowboy that won't submit his offer on the specified form ...

 

Besides the agent is confirming in writing that he did present the offer, but as we all know agents are pretty good at representing the best interests of themselves. The agent could just be saying so to get me off their back. Their answer to me was pretty rude and cocksure until I courteously thanked them and asked for written confirmation from the owner, they answered but skipped around the question by giving me a n irrelevant story about how they are acting as exclusive agents. I know no other offers where presented today.

 

Agent30years I am confused by your cryptic posts could out please explain

 

Happy too @Ald , can I ask first what your offer was ?

 

Hey @Ald I genuinely apologise , I just reread your post and realised this wasn't in WA where you refer to the offer on a form. So I was thinking you didnt submit the offer the way it should be .

However , taking that out of the equation : If I were him and your offer was low I would be thinking your either a hard arse throwing in low offers on everything on the hope of snagging one or you might be less experienced buyer ( the friend advising ) and your every chance to get emotionally involved

He might just be waiting to see if you come back with something better without any prompting , if thats the case your the second guy

 

Normally a home opening in this suburb would attract 40 people minimum about 10 came. The price guide was a million bucks. The property was in much worse condition then another property around the corner that was listed at $650k but at auction went for $820k. There were bricks detaching, cracks, there was slumping ceilings, a crumbling and broken asbestos garage, a house that in 30 years had not even been painted. A slumping roof in parts.

Basically you need to gut the place including replacing every interior plasterboard wall. I offered $800k and $10000 deposit cash. Even that was too much.

 

You offered a low price, the agent said no. either up your price or move on. if it is genuinely a great offer the agent may come back to you. 10 people at an open doesnt sound bad to me.

 

Ald can u list it so i can have a look?

 

The agent is lying to you?
So you expect a vendor to sit down and write you a letter?
How do you know there are no other offers?

Reality check needed. Vendors pay real estate agents to handle all negotiations on their behalf. The only written communication from the vendor will be a signature on an accepted contract.

If you truly believe the asking price is ridiculous (your opinion) then repeat your offer in a couple of months when the property is still unsold.
Marg

 

Vendor would likely be offended if your offer was presented, agent was saving everyone time. Be in the ballpark if you want to play.

 

Sounds like the vendor is a dreamer, let them dream, move on. Call the agent in a month and offer $750k if you havent found anything.

 

If I am reading this correctly they are asking 1M and you offered 800k after 1 week of open houses.

If the house is worth 800k (like you said) they will need time to understand this. The best thing you can do is tell the agent, what comparable sales you have used and see if he his thoughts and if that isn't successful then tell them (nicely, as your post seem very emotional) that you will continue your search and if the vendor changes their mind or are more receptive to a lower price to let you know as you are still interested but will keep looking and then keep monitoring it so you can see if any difference in marketing and maybe every couple of months just touch base with the REA to see what is happening.

Either that or increase your price to match their expectations or what could be market value.

There is a property I put an offer in last week for which was below their asking price (about 10% below) but they have rejected it, a house sold around the corner for a similar price and was also a corner block and I put more on than this one along with more than what it passed in at auction for 6 months earlier. The vendor is going through the supreme court to remove a caveat and has so far spent over $20,000 doing so. This is a deceased estate and he is one of 4 or 5 children. The REA words were the vendor is a bit of a nut as he knows the offer was reasonable but the vendor is holding out for this 'dream' price.... One day he will get there maybe but no point burning bridges.

 

100% agree but trying to get a vendor to go from 1M to 800k in one week is very very hard for anyone to close that gap. This takes time and a lot of people saying the house is only worth 800k, if the listing was bought (as in REA said 1M for a 800k house) then it is likely the house will be pulled off the market and then listed with another agent. I would suspect it will take the OP at least 3-4 months before the house will sell for their 800k if their understanding is correct.

There was a house in Sunnybank that sold for 1.5M the other day where the 'comparable' would of been 700-800k. However as it was located so close to the market the land value was significantly higher than the usual comparable sale. Would the vendor achieve 1.5M for the house without auction, hard to say.

 

The 1.5m was a bit of a shock, but no way would it ever have gone for under a million. I reckon a pre auction offer would have had to be around $1.2M to stop the auction.

Sunnybank is moving very quickly and comparable are out of date before they can be published, hence most properties now go to auction.

Even run down houses much further from market square are achieving over $700K. Add the fact that that block is subdividable and you are at $1m land value. A new build on 400sqm will fetch over $1m if it is within one km of market square.

The vendor in this case was lucky enough to have two determined investors fighting it out after all the others dropped out.
Marg

 

People you don't understand at all the gravity of what I am saying.

We agree that the market price is what the seller is willing to sell the property for and the buyer is willing to pay.

What we don't agree about is the selling process.
It is a fundamental of professional conduct that if the name on the contract will be yours and the vendors, that offers made to that vendor are responded to by the vendor, as is the case in WA.

The reason the WA system has not been implemented in NSW is that the state goverments and real estate agents have an ingrained culture from convict days to treat buyers as lesser parties to the transaction. To ensure property prices are high and controlled by the real estate lobby and to ensure that stamp duties are higher and to ensure that gazumping can occur. The intent behind the system reveals the criminal and exploitative mindset, the phenomena of people who defend this reveals a disdain for professional culture and their patently evident selfishness.

When I discover an agent who does not send me written responses from a vendor and who accepts gazumping then I know that I am dealing with a criminal who cannot be trusted. A low life with no morals and a greedy little shopkeepers mindset. In other words a little person, an amorphous blob who represents nothing whatsoever of value.

It takes class and courage to be a moral businessman and to make money that way. It's the easy road to be less than mediocre.