Sold for much less than offer!!???

I recently put an offer on a property and "missed out", despite making an offer over the asking price, with no conditions (ie no finance or B&P clause, and flexible settlement). And now I find out it actually sold for 60k less than what I offered!
Before I sent in my offer, I spoke to the agent, to inform him of my offer. He confirmed it was still available and he had "several offers already and it will be sold today". On probing he indicated I was in the running for securing it. I sent the my offer by sms immediately (as requested). Strangely, he got back to me pretty quickly, saying that the owners had accepted another similar offer, from someone they already know. I know the market is hot and understand why you may prefer to sell to someone you already know, but for 60k less ??? (sold 900s). Seems lot of money to forgo ... Has anyone experienced this before? Does this sound fishy?

 

Yeah seems weird. Only thing I can think of is there are some unusual terms that very few would have agreed to, e.g. they needed to continue living there for another 24 months.

 

Selling agents have friends and family too...

 

And kick backs lol oops!

 

Did the property require renovation?

 

They're agents, they have networks. Families disowned them long ago.

 

No. It has been renovated recently and well maintained.

 

It was a rental and being sold vacant.

 

It may have had a building and pest with some concerning issues.
Did you do a council search and past construction and extensions were all approved ?

These things commonly come up and is why people do this searches and inspections. The agent will keep it private. If you found any of the above would you have offerred less ? Selling for $60K less may have been the best offer with all the information known.

I have also seen former deceased estates with this issue. It goes up for sale and then one sibling wants it. Its taken from market and sold on private terms to one of them. If there is no CGT and only a % of duty for the one to keep it the $60K discount can be worth it.

 

Had this happen once to me, so I contacted the owner directly and chipped him about it. He was not aware of my offer. He was angry and let rip at the REA who I believe was taken to court over it. I left the state but heard on good authority that he was keeping offers back so a relative of his got it cheaper. I believe he did it 3 times. Scumbag of the highest order. You have to follow up on it, just in case. There are crooks in Real estate and that's a fact.

 

My offer was unconditional - NOT subject to B&P nor finance ...

 

Wow! Who knows maybe the same issue ... Thanks for sharing!

 

Contact the owner direct and find out the truth?

 

It was only an letter of offer (the one from the REA), not a formal contract, so do not have the vendors contact details ...

 

If it was an IP, get someone with RP Data to help you.

 

If the selling agent part of a franchise speak with the regional sales manager about your experience.
Keep a screen shot of your offer.
Take a copy of it to the QLD Fair Trading. ( sorry I don't know th name of it.

Let us know how you go?
I hope this helps.