We waived the cooling off period but had a building and pest inspection when we bought our current house. It's part of the reason we weren't gazumped, the previous owners needed to leave the country as they were starting their new jobs etc. we agreed so we ended up signing the contracts and exchanging then and there. We met the previous owners etc and we are now Facebook friends. Lol
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11-07-2015 14:40 #31
11-07-2015 20:20 #32Senior Member
- Join Date
- May 2014
We were gazumped after finally having an offer on a house accepted after 12 months. We saw the house on the Saturday, put an offer in that afternoon, got a call later that night to say it was ours and we could organise our inspection on the Mon. We organised inspections, and we asked the RE agent about signing contracts and she told us not to worry about it until we had the inspections done and that the house was ours, they were telling people it was sold who were making enquiries so we could relax. On the Wednesday someone rang the RE and put in a higher offer, the RE never bothered to contact us, by the time we found out (the Friday) we had already lost the house.
It was one of the worst experiences ever. After missing out on so many houses for 12 months of looking, and then having a conniving snake of a RE agent lure us in to a sense of false hope that the house was ours (when it all went down she told us if we had wanted to ensure the house was ours we should have signed contracts...I am not a violent person but I have never wanted to punch someone in the face as bad as I did that day) the emotions that came with that experience can't be described. It was truly awful. One of the worst experiences of my life.
It's been 2.5 years, and we bought a house a few weeks later that we absolute love in the same suburb, but every time we go past the house we first bought I still get a sinking feeling in my heart and a heaviness in my gut. I also want to disfigure that RE agent's face every time I see it on one of her for sale signs. After that experience we refused to even look at a house that was for sale under that RE, no matter who the agent was. It's a downright awful experience and I would never do it to anyone else.
However, it's different to putting in a higher offer...another house we put an offer on and the RE agent told us it would be high enough for the owner to say yes too, but before he rang the RE he rang other interested buyers and let them know an offer had been made on the house and would likely be sold. An hour after our offer we got a phone call from the RE agent to say someone else put in an offer that was $20 000 above us, and did we want to put in another offer...we couldn't afford to put any more than what we offered so we declined and the house was sold. I walk past that house at least 3 times a week and have no ill feelings about it what so ever. It was never made out to be ours in the first place.
The house we bought we ended up buying with an unconditional contract. Risky, but it was the only way we could get the house for the amount we offered, and we knew we'd never ever get the house if it went to Auction, or we ended up in a bidding war. We estimate we got the house for about $60k less than what it would have gone for at auction and it has paid off for us.
Last edited by Full House; 11-07-2015 at 20:28.
12-07-2015 06:05 #33
One thing I cannot stand and that I find so unethical is the way RE agents play people.
I don't know how it is in other states or areas but where I am in NSW, it goes something like this:
Interested buyer 1 rings through an offer
Real estate agent says ok, will submit offer to the owner. Doesn't submit it straight away, rings around for higher offers.
Interested buyer 2 puts in a higher offer, RE agent STILL does not submit offer to owner, he instead rings interested buyer 1 and says 'we got a higher offer'.
Interested buyer 1 thinks that REA has already submitted offer to owner(which actually hasn't been done) so he makes another higher offer.
REA then goes back to interested buyer 2 and tells them of counter offer.
And so the cycle continues.
Only THEN does REA ring owner to tell them of the offers.
It is so unfair, because really, the owner may well have accepted the first or 2nd offer, but 5/6 offers later the price becomes so high that it pushes the house prices up for the area and it's just over priced! Plus it's the main reason people get gazumped.
12-07-2015 06:26 #34
I can't see how the agent shouldn't do this (phone auction) when he is only trying to maximise his commission.
If I was the seller I would expect him to do so and come back with highest offers only.
Having said so that system is one of the reason I'm a renter.
In France houses have one price tag and first buyer that wants to purchase it at set price gets the house. Easy, simple and fair for everyone.
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12-07-2015 06:31 #35
@SAgirl the REAs job is to get the highest price for the vendor, not to make it fair for the buyers. In my opinion, my REA wouldn't have earned their commission if they didn't get the best price possible for me.
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12-07-2015 06:31 #36Senior Member
- Join Date
- Feb 2015
I think it's fairly standard in all honesty.
Agent & Seller want the highest price.
Seller doesn't want to hear the ins & outs of every offer (otherwise they'd be selling privately)
Quite standard for the agent to take down your offer then follow up other enquiries/names/numbers to see if there are other interested parties & negotiate between all interested parties to ensure they get the highest sale price.
I totally get the frustration though (I'm in the process of selling & looking at building to avoid the competition)
Hope the other offer flops & you get the house for a cheaper price!
This happened with our last house. it was on the market for 280. We and another buyer went back and fourth until they hit 320 & we backed out.
Then the bank refused their loan application and the agent came back to us. We dropped our offer right back to 269 since there was no more competition & got the house (11k cheaper then asking price)
fingers crossed for you guys x
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12-07-2015 06:39 #37
In terms of gazumping, until the contracts are exchanged anything could happen so I don't get too excited until then. But in the ACT, buyers don't have to organise pest and building inspections. The seller does that and the eventual buyer pays for them with an adjustment at settlement. It's also standard to waive the cooling off period.
12-07-2015 06:44 #38Senior Member
- Join Date
- May 2014
I have no problem with phone auctions. That is what the RE agent should have done who gazumped us . She knew there was another interested buyer and that they were going to put an offer in the following week. She should have rang them and given them the chance to put i their offer. By not doing so we lost money in inspections, and we also had our dreams shattered. We would have just been disappointed to miss out on yet another house, but I wouldn't class that as being gazumped. If I am selling a house I want to get the max price for my house, so would absolutely expect the RE agent to ring all interested bidders. It's hard wheen you're the buyer and you constantly miss out but the agent is there for the seller, ultimately. It's up to them as to whether they are going to be a decent RE agent. The house we were outbidded on in the phone calls, the RE agent told us he would ring other interested buyers to see if they wanted to put in an offer. It was all very above board.
12-07-2015 08:07 #39Senior Member
- Join Date
- Nov 2013
I get that both agents and sellers want the highest price possible, and there's no problem with that - if I was selling, I'd want to achieve the max amount of money for it too. But what got me the most when we were house hunting was the way properties were priced. So many of the houses we looked at were priced way lower than what the sellers actually wanted to achieve.
For example - we looked at a house that was priced at 450k. It was a lovely house but we knew they really wanted more than that for it - so we offered 480. Agent ummed and ahhed over our offer, presented it and it got knocked back as the owners wanted more. So we offered 490. Owners were considering (but still not overly keen to accept) but then someone else offered 520 cash so of course their offer got accepted instead. I don't have a problem with that as there's no way we could have matched that, but what I do have a problem with is advertising at 450 when they really wanted 500+. Just be honest about what you want for the house! If we knew from the outset that's what they wanted for that house, we wouldn't have bothered even going to the home open in the first place as it was above our budget. I know it gets more people to the home opens, but what's the point if they can't afford it!
12-07-2015 08:08 #40
I think what SAgirl is annoyed about is not so much that the RE agent is "doing his job" as that the system is flawed to favour the vendor/RE agent. as I said previously, it's a grossly unfair playing field with the buyer on the back foot. RE agent holds all the aces and manipulates the situation to report back to the vendor with a much higher price than what he'd have got to begin with.
I think it's unethical.
not sure what the go is in nsw, but in Vic, the REA is obliged to pass on EVERY offer to the vendor. regardless of whether they think it's a joke or not. that levels the playing field a bit. I'm also not sure about the verbal offer thing. in Vic, an offer is made on paper. calling up and saying "I'll give you $650k" means nothing. again, this is prob why the REA is able to do the ring around and frighten prospective buyers into going higher with their offers.
like in nsw, if you made a written offer, would the REA be obliged to pass it onto the vendor?
just seems like a grossly uneven playing field where the buyer is going to get stung every single time, regardless of the outcome.
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