Real Estate Agents not replying to offers...

I'm not sure about all sates, but in the ACT and SA, "offers over x" means the vendor must be willing to accept an offer within 10% of that price. So obviously the agent puts 'x' at the lower end of what they legally have to.

If however, an offer is put to the vendor and it is refused and is higher than "x", you can't keep advertising at that price.

If the vendor doesn't reject the offer you can continue to market- some agents will tell a vendor to indicate they don't want to see offers until a certain date that way they can continue to market at a lower price to generate interest.

 

If the vendor accepts my offer after going direct to them the agent will still get his cut. Older, more experienced agents who are genuinely wanting to sell a property in a timely manner often appreciate buyers going direct to vendors if it helps the sale. Essentially you are helping them do their job (if it sells)

 

Agents don't want buyers dealing with the vendors full stop, not sure what fantasy land your living in

 

And vendors don't want it either - that's why they engaged an agent.

 

A scenario I've personally dealt with:

Vendor is an elderly couple selling a house they've owned for 40 years, raised a family in etc. and have a strong emotional attachment to the property but need to sell. Buyer puts in offer to agent and spends a Sunday afternoon approaching the house and vendor for a friendly chat about how much they love the house, street, features, want to buy it as a first home as well to raise their family in etc. Vendor accepts offer in the following days on an emotional level. Everyone is happy...

 

I've threatened agents in the past with making a complaint to the real estate institute. I do this especially when they say "that offer is too low - I can't take that to the seller". I remind them they have a fiduciary obligation to do so. Sometimes I also write a deposit cheque and insist they prefer it to the seller.

 

We brought our PPOR after the agent forwarded our low ball offer. We want direct to the vendor with $5 k more and secured the property

 

They have a fiduciary duty to the vendor, not to you as the buyer. The vendor may have instructed the agent not to present such offers.

 

We looked at a house with a price range 400-440k, made a verbal offer of 405 to the agent and was told point blank no, I said no worries, that all the house is worth to me and moved on, wasn't worth the hassel.

 

As I mentioned in another thread - agents don't care if you're a buyer or a seller - all they care about is making their commission. At ~2% $30k less or $30k more means nothing to them if they can sell the house today. In some circumstances, your job as a buyer is to convince the agent to sell the vendor into taking your offer.

 

And if that was the case what is the agents excuse for not communicating that back,

I agree with @Simon L. If they feel that they will not make a sale with you then they just switch off and focus on someone else.

 

So Sir Dingo
Did you ever get a call back from that agent?
Has this case moved forward?

 

Dealing with SA agents a lot, compared to the agents I have dealt with on a personal basis in NSW and VIC, they are by far and away the most unresponsive.

Many seem to be only barely technologically literate, dont respond to web enquiries, dont return voicemails, dont return SMS followups to voicemails, dont return messages left at the office, and dont return emails. Those that do respond are often disinterested or hard to get things out of.

I had one prop I had been chasing the agent for 2 weeks without success to get access to inspect a new listing. Finally got through after lots of followups on a thursday 5pm, then was SMS'd next morning that all offers were to be submitted by 11am that day to be considered. Was not interested in playing his games and neither was my client, so we passed on it (and the frontage was too small anyway).

 

And the agent sold it for $395k to his brother in law after reporting to the agent "there were no written offer. The market has dropped you better take what you can get".

I like to insist on the written offer being presented. You can always do a direct approach to the owner after to see whether they ever saw it. I like to keep the agents honest ( cue Mission impossible theme).

 

Agent didn't reply my emails or answer unknown calls as to advise the highest offer they got. Turned out I could actually pay higher than the sold price.

Agent might have a better or private relationship with that buyer - not only the commission on paper...

 

Not in this case I dont think, buying in a rising market, almost at the top, I'm sure they'll sell it for more than I offered but I offered what the property was worth to me, other buyers are so keen to buy they overlook the 40 housing commission units over the back fence, obvious expensive repairs that need doing to the house. etc.

 

Hi Sirdingo

I'm in Queensland so my comments may not apply across all areas. However, in my view, it's probably more a case of strategy on behalf of the sales agents than anything else. I would give them the benefit of the doubt and assume that they are well aware of what's going on, and working their hardest for the Vendor. This includes lining up inspections to achieve the greatest sense of competition, and using existing offers to generate better offers. This is common practice, and unless you have your own counter-strategies in place, you will find it frustrating. I strongly suggest forming a clear counter strategy to any suggestion of 'multiple offers'.

Your written offer, was it on a formal Contract of Sale or a Letter of Offer?
Did you have a formal sunset clause?
Did you notify the agent and request an acknowledgement of offer received?

Cheers

Jen

 

I have to admit, when I buy, I usually have a firm price in mind and offer in line with that, when I sell, I do the same, I have a set dollar amount in mind & I often tell the agent before I sign them up that I will hold them to that price as a min & not to waste my time trying to work on me, they are to work on the buyer.

If I had an agent coming to me with low offers after explaining this I would be giving them the flick when agreement has run.

 

@Xenia update...I made 3 offers this week, 2 agents didn't respond within 72 hours, (one only resounded after I sent an email to head office.).

The third agent responded within 24 hours to confirm receipt of the offer and to say that they have left a message of my offer with the vendor. Easy. Couldn't have taken more than 2 minutes to write the 2 sentences, and I'm informed.

So many are just shocking. One says she only checks her emails every 2 days (!!!)

No wonder there's such a high staff turnover rate in the industry...