Real Estate Agent tactics

Hello everyone,

I'm currently searching for a PPOR and despite being in some of the nicest streets and good suburbs it feels like I'm exploring the back alleys of the shadiest places imaginable, why? The agents are the like the sharks on the poker table, just bullying it up.

I'm not so naive, but I feel like I'm dealing with the music publicists in Rock N Rolla, these agents have everything.

Mickey: My hat is deep and full of magic. I got rabbits, handkerchiefs, and ladies of the pole drinking Black Label. I got smoke machines, bubble machines, I even got love marines, and still the hat goes deeper.

What fascinates me is I can play any angle and I get one back. I've tried being straight up but it hasn't paid off, now my only tactic is offer and wait. And wait.

Some examples.

There's another buyer (yep, so why isn't it sold?)
They won't go that low, they've spent x on marketing the property (like I give a ff what they've spent their money on, I don't start talking about where I spend my money. 5% in and out, deal with it)
They want to go to auction (ok, let's go)
Their range is a-b and your offer isn't in the range (my offer was half way between a and b)

and my favourite

I'm not accepting conditional offers this week (sounds rather illegal particularly when they messaged me two days later saying they had a conditional offer, house is still on the market a week later by the way).

I wonder, don't these people actually want TO SELL properties? I wonder how the vendors would feel about losing sales because the agent is too busy playing around (although some vendors are unrealistic). Yes, everyone has their price they want but it seems so stupid to me not to just get me to that price. One I would have even paid full price if the agent had not been so stupid to tell me he wouldn't take any offers (it wasn't going to auction).

Other bs includes, calling me about properties I have said are out of my interest, calling me to tell me about the sale price of properties I'm not even interested in, spamming the hell out of me with 1.5 million dollar properties when I'm only interested in $500,000.

It's insane how stupid it is, I understand it's a numbers game but I'm a straight forward kinda guy who is now having to play master strategist and I hate it, now I just feel like low-balling everyone to get a feel of the maximum level they're hoping for, I'd not have to stuff around like this otherwise.

Please share the tactics that you have experienced in their hats. May be good to see. I ain't seen no love marines yet, but Mickey's got talent.

 

Agents are trying to sell and their tactics, whether you like them or not, are aimed to sell property.
Looking for love in all the wrong places, Mickey wants a commission not your love.

Focus on what YOU want.

If you are focused on what you want and the purchaser tactics, that will get you a property then you will go further towards getting a property.

If you focus on what you dont like about what agents are doing you will just get more frustrated.

BTW - what do agents want? A genuine offer.
whether there are others on the table, it's going to go to auction or you need to pay more because Michael Jackson once peed in this toilet does not matter. If your offer is highest and best they have and it's genuine, you get their love - OK at least buy the property.

 

Don't tell me I am sick of these utter BS by them! I am glad that I didn't take up their BS.
-We have another offer 20K higher than your offer,
-Potential buyers are reviewing contact,
- have so many a very serious customer. so If I am interested, I have to bank transfer 5% deposit to agent's trust and produce 66W certificate as soon as possible to take the hot property off the market (still unsold btw)
-Another agent did hide about a water line running across the side length of the lot and asked us to sign contract within 1 day and use the cooling off period to cancel the deal if needed. its because the vendor had another same offer and did not want to delay to loose other customer. i insisted on checking the contract papers first. then found the sewer line, water line in a bit awkward position.

-latest one. An agents told me all their lots in a new development in Sydney NW got sold. only one lot left (as if I am blind/ illiterate, i don't check realist.com). then calls me every second day now offering me 10k less on every call!!!



All the lands I was looking in Colebee, Schofields, Box Hill are still unsold. The ones in Schofields and Colebee are still unsold and listed for more than 4 months. I can see their duration of listing when I check from Allhomes. And I started searching from February anyway and they're still unsold, their listing are refreshed every week.

 

@Xenia

I guess you missed the bit about me being straight up. I've made five genuine offers some well above the range. That's the point.

Sorry. The agent position of make a reasonable offer and buy is echoed but not working.

Also the point was to discuss tactics. Any tactics you'd like to share?

 

Just do search the vendors name in the white pages and call them directly.

 

Alisdair if you are making a reasonable offer and it is not accepted, why is it not accepted?
We sell properties, they are always sold and they are always sold to the highest and/or cleanest offer - or some other criteria instructed by the vendor.

In any negotiation you need to understand what the other side wants so that you can offer it.
What is it that they want that you are not providing?

What are you losing out to? What is the difference between the offer that IS accepted and yours? Are there offers above the range, vendor wants unconditional cash offer? Needs quick settlement? What is being missed?

 

Thanks for highlighting another tactic, I wouldn't know what they want because everyone is talking in a vague grey area, most of the time they want above market value, words to the effect of, they want something within x range, so when I offer smack bang in the middle I'm told it's too low, now that obviously is not what they really want. Sure, I too would like below market value but I know that's unlikely to happen, so I'm offering a considered amount against similar sales in the area. I see you're in Adelaide, not Melbourne, I feel that may be reason to misunderstand me. For instance, look at the amount of auctions in Melbourne vs Adelaide.

Try not to be defensive, once again, for the third time, here is what I'd like to discuss;

what are the tactics agents use?

I don't want to discuss anything else actually, yet here we are talking off topic.

So, that's my final offer, take it or leave it.

 

Best comment yet

 

Don't try and play the game man. Focus inwards... you are in the drivers seat.

Xenia has offered some great advice.

 

I apologise if I'm taking a defensive stance, I'm a real estate agent so looking at the problem from that perspective - it may offer you some insights, or maybe not.

I'm not sure I'm misunderstanding, rather I'm trying TO understand and work out what the problem is.

I have also been a buyer many times too, in Adelaide, New Zealand, USA and Europe but never in Melbourne LOL.

Adelaide is a cold market - offers within range are usually accepted.

Years ago, it was a hot market, we were appraising properties say $500 - $550,000 based on last 3 months sales in the area. We were selling them at first open inspection at over $600,000 and people were going crazy (I miss those days )

Is same thing happening in Melb? Hot market, offers accepted above appraised price?

 

This would be helpful if the problem is an incompetent agent.
It would NOT be helpful if his problem is a hot market and he is losing out to higher offers.
Vendors already think their property is worth $500,000 more than it actually is, agents keep it realistic by referring to comparative sales not emotions. Approaching a vendor directly with a low offer when an agent has higher ones is not going to solve any problems. It will however put the agent off side.

 

And your inside knowledge of real estate agent tactics that you'd like to share is...?

 

Markets within markets and different agents will use different tactics. The best method you can do is do a lot of market research and figure out the approximate market value of what you're willing to pay for a property, particularly if it's an investment as that should help take the emotion out of it. When you do your market research and stalk all the houses for sale and compare their sold prices you'll quickly be able to work out a trend with the agents in the area. E.g. Ray White Semaphore prefers to use auctions as their sales method and the houses will typically sell 10%+ above their reserve. If the house doesn't go to auction and being offered as a private sale usually they are looking for an offer around asking price but attend the opens and gauge the interest and it quickly becomes apparent of how realistic an offer will be.

Another tactic agents use is underestimating the value of a desirable house for a private sale as they know it will bring more attention and people to the opens, which helps try and lure the emotional PPOR buyer. I've seen houses being marketed as 330-360k end up selling for 420k after the opens have been flooded by people. Others asking 400k selling for 480k. The houses don't even have to be PPOR quality sometimes it's just about the agent offering a lowball asking price in a decent location, which naturally garners interest. This is in Adelaide where we are nowhere near booming so I imagine if you're offering prices in the middle of the asking range for detached houses in half decent Melbourne suburbs you won't have much chance of success even if it is an unconditional offer with a quick settlement...

 

OK from my perspective and experience over the years.

First thing buyers need to realize is buying a home or IP and trying to get a good deal will require you to go to battle. It is war. Make no mistake. A war game of wits, deceit, strategy, bs, aggravation and more bs. But there is no way around it. For every 1 transaction that is an easy purchase, 10 will be a battle, especially in rising and hot markets. This is something you need to acknowledge, accept and then start to play the game.

The best way to get an agents attention is to make sure they know you are very serious, you have finance preapproved and you are looking to purchase multiple properties. Also building relationships with some REAs over time can make a huge difference. Lunch, gifts etc. Ethical on the part of REAs? Of course not. Its all part of the game.

At the end of the day what an agent wants MOST is to sell the property for themselves, not for the seller or the buyer. Make no mistake. So if you can make the agent believe that not only is your offer solid but you will guarantee a smooth and quick transaction, it will be music to their ears.

Once you are in active negotiations, eg vendor accepted your offer and your in the DD process with Building and Pest etc, this is where the balance of power shifts back to you, sometimes a little, sometimes a lot. You can use BnP for further negotiation if you have to and/ or to increase pressure on agent via your language to them during this period. They don't want to lose the sale so if you know how to apply pressure it can help your position because then they will repackage what your saying and tell it to the vendor in the best possible light. They will actually advocate for you many times, because they want the sale to be complete.

A lot of this stuff comes with experience but there are some good books on negotiation/deal psychology though most are not committed to go that far to try to gain an edge.

But there is no point to get annoyed and frustrated. Its really just a game that will never change. Also there are people who say that all this negotiation nonsense and a waste of time. They say the person who offers the highest will win. Well first, being the highest offer and 'winning' the property doesn't mean the deal is necessarily good and second, I know for a fact that if you are able to build relationships with REAs and employ a couple of the strategies above, it can make a huge difference.

Good luck

 

Oh come on Alistair.
Did I not offer even one single bit of information that you found useful??

 

I think it is you and what your offering in the market your in I would say.

If the market is warm to hot, the agent will know they can get others, if they give you a range, they are looking at the top of the range, not the middle, that is what they do.

If the market is not hot, you just stick with your offer if you think you know better then call their bluff.

Your either going to be right, or wrong & some agents, you just can't deal with either way.

 

How about using a buyers agent?
If all agents are scum bags then get a scum bag to deal with a scum bag.

 

Best Buyers Agent slogan ever!

 

Woah, please I'm not calling people scum bags.

I said Shark and there was some bullying going on. I never called anyone a scum bag, I said someone's actions were stupid, because having a sale in your hands and throwing it away by pressuring someone too hard is stupid.

Please let's not get carried away on agent bashing, I just asked for a look into the play book, as confirmed by others above, there are strategies and moves made.

I went in with an open mind about agents, when I find one that tells me this house is on the market for this price, the vendor will take this price, I would buy that property if I liked it. It really couldn't be simpler. It hasn't happened yet.

Yeah, buyer's agents have never been so appealing as to take the emotion out of it. I could just over pay by 1.5% and be even too, something to think about I suppose.

 

If you are serious, put your offer in writing with a contract of sale and a closing date like 2 or 3 days and your terms.

If you get a counter offer, accept it and u will get a deal, or continue with your own counter offer

If you don't get counter-offer, then after closing date you can put a higher offer or just walk away.

The other option is to wait until Melbourne market goes flat or crashes and becomes a buyers market. Agents will be ringing you left and right after u leave your contacts at opens.

A REA wont bother ringing you back if they have higher offers, they will just leave you hanging until the property is sold.