Real Estate Agent tactics

I have. Consumer Affairs confirm they're going to prosecute.

What a choice

 

Dont like it? Walk away and dont play.

 

Here is a possible:
1) House is worth about 450k based on current market.
2) Owner thinks it's special and is worth 500k+.
3) Agent says lets advertise a range of 390k-440k, get more people looking.
4) You offer 450k. Owner refuses.
5) Goes to auction. Doesn't get to 500k+. Passed in.
6) Re-listed.

The problem here is the owner. What should you do? Gone to the auction, seen what the highest real bid was. Negotiate from there if you want the place. Walk away if you don't. No love needed.

 

New rules say they gotta update their range when they turn down an offer. Regardless of vendor stupidity, that's the law now. This should turn things around.

 

Yeah well, I did again, but only someone who has emotionally fallen in love takes on overpaying and then 10 years of an expensive sinking fund into body corp developments when a whole lot of new stock will be available on July 1 thanks to the changes in stamp duty. It was the right financial decision. We offered the maximum likely value calculated against rental returns, historical median prices and compared to similar sales of similar properties in the area.

My confidential one time offer seemed changeable because it wasn't as high as the other person's limited time confidential offer. Felt wrong. I was told one time only, but since it was lower I could amend that option. Even though the agents weren't able to say what the other person offered. Must have James Bond's Q on the case or something.

The other person beat us but a nice narrow margin, even though it wasn't on the market and it wasn't an auction I'm quite impressed by how well the other buyer estimated the amount we offered. Must have spoken to Pythia on their mobile phone. Then if my one time offer had become a two time offer somehow I feel they'd get a phone call from Delphi letting them know they too should offer more.

Tactic 101, if they tell you you'll only get a chance at one offer... don't be afraid.

If they tell you to put your best foot forward, maybe you have two good feet and they are trying to convince you otherwise.

I have a headache from talking to agents, I deal in a world where things are straight up. As simple as yes, that person is dead. I've been beaten around the bush for so long I can't wait for some backburning to start. I just feel like coughing and saying "bulls**t" at the same time every 30 seconds. It's only because I may need this person to help me made a deal that I barely tolerate it. My integrity suffers. This may seem like a small issue for some but I'm just such a ruthlessly honest person it actually makes me feel sick. The only good part is it's training me to work on my courtesy, albeit to my detriment.

Went to my first purplebricks house for sale, a little softer, an agent of sorts was still there, but doing a weak job of selling. Trying to sell a stratum title when paperwork was missing, really stuffing it up. Sometimes the best tactic is to let them dig their own hole, then hand them a shovel.

 

Does not seem to be working as your saying they are ignoring this (I assume it is true and law, have no reason to check)

 

So, you seem to know how it all works, while it can be annoying, if you can see all that, is it not time to realise you should find a market that favors buyers, or wait till there is one, or pony up the extra to get around this problem ?

I tend to get along with most agents, I can have a laugh with (or at) them, but am under no illusion that they are going to try and get the best for the vendor usually, and I actually expect them to do this, and to say and do what is required.

I also tend to think, that if you play things right, and if the vendor is being an idiot or difficult, then the agent can often end up respecting you as a buyer a whole lot more, and all of a sudden you hold most of the cards.

 

Always true to find a market that favours buyers, too bad if you want to live and work in one that isn't really a buyers' market. Investing can of course be different, but it's a bit of a battle where we are looking.

Market is changing though with the July 1st changes to stamp duty and no doubt lots of new properties available. Yes, more competition probably too, there'll just be more of everything.

I think being quick is a valuable tool also, you look every day and get on top of it, or if you have an agent who listens they'll contact you about the right property, although this is proving difficult, I'm more often contacted about the wrong properties.

Yes, you're probably right, stupid vendors probably exist as much as stupid buyers. You need to be reasonable.

 

This sounds familiar.

 

It is for all of these reasons and others that I love negotiating and buying property.

We are at a stage in life where we have finished accumulating properties - I miss the game, I miss the dance, I miss the entertainment, I miss the fun, ...

The only way I experience it all now is helping family and friends. Even this week, I helped a fellow PC member secure a property.

Through the process, it became obvious that the REA was a professional and they used a number of negotiating tactics and gambits on my friend. Each time they did, I identified to my friend what the gambit was and best way to respond. I gained more and more respect for the REA as time went on.

Anyway, my friend secured the property way below what his research determined was fair value and $20,000 below what he was initially going to offer. And this is in Brisbane.

He is happy, his wife is happy, his kids are happy, ...

I am happy but, by God, I miss not buying.

 

I always try to do this.

Respect the REA (even if I think they are not good) and try to get them to respect me.

I know the REA works for the seller but, my job as a buyer is a lot easier, if the REA and I have more mutual respect than all of the other buyers.

 

So much knowledge, so little understanding. Cue sound of stamping feet and screeching 'but but but your not allowed to do this!'

 

Maybe you'd like to get on an aeroplane say night before July 1. Only every single property will be on the market in Melbourne. Going crazy here. Nice to hear that you love hate it. Makes us feel human. Care to share some of those gambits?

 

I don't usually talk about my work in a public space but this goes entirely against what I do for work. Make fun as you will, people breaking the law keeps me in a very secure job.

 

But it doesnt get you a property. Not making fun, just pointing out that maybe different areas of life require different methods?

 

actually, a lot of this thread feels a little bit, well. belittling.

I thought it was a place for intelligent conversation but it really isn't going in a direction I think is very helpful anymore.

Rule number one of investing is not to pay too much so I'd expect to see some more support for such a position.

Whatever, I'll take what I can from it but nothing has taught me more than the experiences I've had more recently.

 

Without getting into where this topic has ended up.
@Alisdair you mentioned you were interested in learning some counter strategies,
Have a read of the following books - I found them awesome.
Secrets of power negotiating - roger Dawson
A propert investors guide to negotiating - John potter

 

After re reading this, trainee, you're a bit of a bully. I don't understand your hostility towards me for throwing a few ideas around.

 

Actually,

I don't need this kind of nonsense, I'm outta here.

I've been defending agents a reasonable bit through the thread, just not happy with immoral/illegal things that I keep finding. I think there are enough examples.

I feel a bit like when people are so deep in they cant see the forest for the trees, so what I'd consider to be wrong others would consider normal.

Yeah, I'm getting there, but I don't need to spend any time on here wading through attitude or give any more attention to it. I've read some great stuff in these forums but there are too many keyboard warriors for me to bother anymore.

Thanks to those who helped.