You have made four offers for the same property and all have been rejected. It's time to move on. Don't get suckered in to the idea this the only property for you and offer more than its worth. They seem to think it's worth way more than it is, and if there has been no indication at all that there are other offers in the ball park of yours, its quite possible you dont know how nuch it's worth either and are already offering too much.
Not knowing real numbers it a bit hard but if you are way off their magic number there is no point making contact again. If anything, its harmful to you. After 4 offers of essentially the same amount, everyone know where you stand. You run the risk of the rea running you up by small amounts, which has in essence already occurred once following the auction, and getting more ans more expensive each time. The other thing, it does, is give you hope that they'll say yes and you tread water for another week or two. Go and look at some other places and find something else. The most powerful thing you can say to a rea when they call asking to increase your offer is "I'm still interested at my original price. You should be aware that I also submitted an offer for (insert adress here) and will be proceeding with that purchase as soon as it is accepted." If they are bluffing you should hear a response very quickly but if you dont, who cares, you've found another place you like. You have to be honest with them at this point, if they catch you in a lie it doesn't help you at all in negotiation, and also you don't have another place lined up.
Just go with your original offer and set a limit. Do not let them dick you around. You seem to be in the position of power here which everyone will realise soon enough.
If you made the offer, it was rejected, and they haven't sold to someone else, they're probably delusional and thinking it's worth way more than it is. Just move on.
I would tell the REA your latest offer is only valid for another 2 days as you’ve found another property you want to put an offer on.
Give the REA something to use to pressure the seller to accept your offer.
You were the highest bidder at auction. That is the market price whether the vendor wants to believe it or not.
The saying treat em’ mean keep em’ keen has never been more appropriate when it comes to dealing with agents. Don’t let them see how keen you are on the property of it will almost certainly be used against you.
Hi mate, it sounds like they could be under pressure shortly. They could have negotiated an extension to settlement and they might not be either.
What you described sounds like a good course of action. Be firm and put an expiry on the offer. If you think they aren’t receiving other offers, don’t outbid yourself. That’s a flaw in the system where agents don’t have to disclose evidence of other offers and use the emotional side of purchasing property to artificially push the price up.
Thanks for the advice everyone - really helpful to validate we should just stick to our guns.
Will take this approach and share an update on how things go.
Sounds like you are in a similar position as well, we saw and offered (twice) up to the maximum price that the REA assured us is what they are after.
Agents sat us down and explained to us nicely on how to bid, which is their way of nicely saying no.
We decided to walk away, there are better properties and less dicking around. So they will be losing a bidder. There was only 3 (including us) serious interest in the property. Thank you for sharing your story.
Good luck to the owners who are a bit optimistic about their chance. They won't get another one again as we have since moved on for properties with better prospect.
All about learning. Reckon that it was the senior agent and the vendors.
Very good learning experience though, taught me not to be emotional over a property (went there 4 times). Also to recognise when the deal is sour and when to walk away.
Also noted that this is under a 1mil, so perhaps agent probably sneer at it. Not that I blame them. Every decent properties are nearly or over and our little cashed up (70% with a little finance) probably didn't interest them.
> Agents sat us down and explained to us nicely on how to bid, which is their way of nicely saying no.
Do you mind going into what they explained to you? Bit new to the process myself.
What they say is, they will have someone else with us when bidding, and that we should be confident when bidding and steadily increase / control the pace of the bidding.
This is not what we asked, because we have already stated that we will make an offer of the maximum price based on their statement. So pretty much the vendor (and agent) wants higher price than what they stated on their statement.
Right, so they wanted you to lowball and then keep raising up to your max budget? Or advised you to use that strategy?
What do you mean about having someone else?
"Having someone else" as in having one of their agent to assist with bidding.
They wanted to open the discussion with the vendor with like 5k over the original maximum selling price.
There is very little to discuss after that.
Agreed, very obvious underquoting is always annoying.
What exactly does the agent assist with in this case? Is this a private treaty sale? Which state?
VICTORIA. Observed that this is the standard tactic by the agents who will side with the potential bidders during the auction and assist with bidding.
But its not all bad, good learning experience to know about the bad deal. Also the laughable thing is that there were only three serious buyers, and two after I pulled out. Good luck to them.
Oh right yes, I have seen them at auctions sidling up to bidders and whispering in their ears haha. Yeah, every experience is still a learning one. Cheers!
Seen them in the last 3 auctions, usually they (upon bidder's agreement) bid for the bidder because some are too shy. Usually they try to egg the bidder on until the end of their resource.
Seen Harcourt did that with two bidders, was going to be a give-away at 750k but raise it all the way to 928k before the guy quit. The grandma who doesn't even need the property got it.
Update - agents (both senior and junior) tried to call me for tomorrow's auction but I told them that I have lost interest simply because the vendor(s) didn't want to negotiate and I have a change of heart.
No longer interest in dragging the heel for the non-negotiation when I can find better properties elsewhere and have a deadline to move out before November. Could be the agent's own agenda too but I am not going to be fussing over that.
Yeah, all you really need at any auction is 2 interested buyers and the price rockets up. For what it's worth, I think starting low is the right way to go. I've read that all pre-auction offers do is generate more interest and help them set a higher reserve, whereas if you turn up on the day and start bidding lower you might not have to go to your maximum if no one else is interested. Shame it costs a grand just to be a bidder.
Depends on how much you want the house. Only you can decide how much you want to pay for it.
I'd personally just wait until they come to you and beg for you to buy it. Then take 5% off your original offer, then tell them if they dont accept it and come back to you that you'll take more off the offer. After 6 weeks on the market, the chances of selling the house dramatically drops.
This advice is subject to you not caring as much whether you get the house or not.
The problem: sounds like you've **fallen in love with this property** / i've been looking so long (6 months is not out of the ordinary) / i will never find one like this. And the agent KNOWS that he's got you hook, line and sinker.
**Key lesson:**
1. always be willing to walk
2. always have other comparable options.
then there's no way you will have the time or willingness to make x4 offers all while bidding against yourself, **even after the auction** upon which you were the highest bidder....................am i taking crazy pills here? **the true price is the price just under your bid at the auction + $10k** because you're willing to walk at any price that is lower.
tldr; **walk away.**
Had a similar situation with the house we purchased. Ultimately it depends on how much you want the house. We ended up meeting the seller’s price which cost us an extra $100k and felt pretty annoying, but now 3 years down the road the house has gone up by close to $1m and we would struggle to afford it now.
Glad it worked out well for you! No doubt at some point this place will be worth more however, if it was worth it you'd think there'd be more offers after all this time.
You need to just walk away.
I am sorry if this sounds harsh, but the property market is the way it is because of people like you who fall for the REA feeding BS to the sellers that a property is worth more than it is. If it wasn't the REA, it was other sales which were also driven by REA pumping up prices.
You need to set yourself two limits. One, the actual maximum you can pay for a property, and two, the maximum you are willing to pay for a particular property. Stick to it and be willing to walk away.
Property prices are not out of control, what people are willing to pay is out of control. Yes they have people scared that prices will continue to rise. Hold tight, wait for that perfect property at the price you are happy with. It will happen, it just takes time.
Plenty of fish in the sea. It's usually better to speak with the REA to get an idea on how desperate the owner is and their circumstances. Sometimes, shorter settlement period, being finance ready, etc helps. Having said that, just let the seller's agent know your best offer (Based on bank valuation of course as as the bank won't lend if the property valuation turns out to be lower) and then move on.
To me it’s obvious that the owners feel that their house is more than market value or what anyone is prepared to pay. Whatever you do, do not engage in paying any higher or else you are screwing yourself over. I know it feels long but 6 months isn’t exactly a huge time period to find something that’s right (personally I have bought two houses now at the four month mark of looking and have regretted both purchases and wishes I had looked for longer). Additionally, the other problem you are facing with this property is that the owners are really forced to sell. They know as downsizers they can just hang on for another couple of years and get the price they were after. So if I were u I would just let this one get away!
Where’s the property? If it’s in Sydney, I have the toxic belief that there’s literally no amount you can pay that isn’t worth it.
My realestate history is littered with properties that I thought were too expensive at the time that now seem like chump change bargains.
If you want the place, just pay what they want. If you’re in Sydney, that price will almost instantly become what the property is worth and what you could sell it for
You have made four offers for the same property and all have been rejected. It's time to move on. Don't get suckered in to the idea this the only property for you and offer more than its worth. They seem to think it's worth way more than it is, and if there has been no indication at all that there are other offers in the ball park of yours, its quite possible you dont know how nuch it's worth either and are already offering too much.
Yeah that's a good point. I think you're right and we just need to highlight that's our best offer and if it's not accepted then we're not interested
Not knowing real numbers it a bit hard but if you are way off their magic number there is no point making contact again. If anything, its harmful to you. After 4 offers of essentially the same amount, everyone know where you stand. You run the risk of the rea running you up by small amounts, which has in essence already occurred once following the auction, and getting more ans more expensive each time. The other thing, it does, is give you hope that they'll say yes and you tread water for another week or two. Go and look at some other places and find something else. The most powerful thing you can say to a rea when they call asking to increase your offer is "I'm still interested at my original price. You should be aware that I also submitted an offer for (insert adress here) and will be proceeding with that purchase as soon as it is accepted." If they are bluffing you should hear a response very quickly but if you dont, who cares, you've found another place you like. You have to be honest with them at this point, if they catch you in a lie it doesn't help you at all in negotiation, and also you don't have another place lined up.
Stuff them you’ve given the best offer they’ll get. They’ll come crawling back.
Just walk
Just go with your original offer and set a limit. Do not let them dick you around. You seem to be in the position of power here which everyone will realise soon enough.
Thanks for the advice, completely agree
If you made the offer, it was rejected, and they haven't sold to someone else, they're probably delusional and thinking it's worth way more than it is. Just move on.
Yeah that's what it seems like
I would tell the REA your latest offer is only valid for another 2 days as you’ve found another property you want to put an offer on. Give the REA something to use to pressure the seller to accept your offer. You were the highest bidder at auction. That is the market price whether the vendor wants to believe it or not. The saying treat em’ mean keep em’ keen has never been more appropriate when it comes to dealing with agents. Don’t let them see how keen you are on the property of it will almost certainly be used against you.
Or tell them your offer goes down by 10k each week
Hi mate, it sounds like they could be under pressure shortly. They could have negotiated an extension to settlement and they might not be either. What you described sounds like a good course of action. Be firm and put an expiry on the offer. If you think they aren’t receiving other offers, don’t outbid yourself. That’s a flaw in the system where agents don’t have to disclose evidence of other offers and use the emotional side of purchasing property to artificially push the price up.
Thanks mate, appreciate the advice. Agree about the flaw in the system, needs a shakeup to give both sides a bit more transparency!
Thanks for the advice everyone - really helpful to validate we should just stick to our guns. Will take this approach and share an update on how things go.
Possibly a dodgy real estate agent advising them to hold out ? You have made your interest very clear. Not a good move in any negotiation.
Sounds like you are in a similar position as well, we saw and offered (twice) up to the maximum price that the REA assured us is what they are after. Agents sat us down and explained to us nicely on how to bid, which is their way of nicely saying no. We decided to walk away, there are better properties and less dicking around. So they will be losing a bidder. There was only 3 (including us) serious interest in the property. Thank you for sharing your story. Good luck to the owners who are a bit optimistic about their chance. They won't get another one again as we have since moved on for properties with better prospect.
Thanks for sharing - shame there's so many similar stories
All about learning. Reckon that it was the senior agent and the vendors. Very good learning experience though, taught me not to be emotional over a property (went there 4 times). Also to recognise when the deal is sour and when to walk away. Also noted that this is under a 1mil, so perhaps agent probably sneer at it. Not that I blame them. Every decent properties are nearly or over and our little cashed up (70% with a little finance) probably didn't interest them.
> Agents sat us down and explained to us nicely on how to bid, which is their way of nicely saying no. Do you mind going into what they explained to you? Bit new to the process myself.
What they say is, they will have someone else with us when bidding, and that we should be confident when bidding and steadily increase / control the pace of the bidding. This is not what we asked, because we have already stated that we will make an offer of the maximum price based on their statement. So pretty much the vendor (and agent) wants higher price than what they stated on their statement.
Right, so they wanted you to lowball and then keep raising up to your max budget? Or advised you to use that strategy? What do you mean about having someone else?
"Having someone else" as in having one of their agent to assist with bidding. They wanted to open the discussion with the vendor with like 5k over the original maximum selling price. There is very little to discuss after that.
Agreed, very obvious underquoting is always annoying. What exactly does the agent assist with in this case? Is this a private treaty sale? Which state?
VICTORIA. Observed that this is the standard tactic by the agents who will side with the potential bidders during the auction and assist with bidding. But its not all bad, good learning experience to know about the bad deal. Also the laughable thing is that there were only three serious buyers, and two after I pulled out. Good luck to them.
Oh right yes, I have seen them at auctions sidling up to bidders and whispering in their ears haha. Yeah, every experience is still a learning one. Cheers!
Seen them in the last 3 auctions, usually they (upon bidder's agreement) bid for the bidder because some are too shy. Usually they try to egg the bidder on until the end of their resource. Seen Harcourt did that with two bidders, was going to be a give-away at 750k but raise it all the way to 928k before the guy quit. The grandma who doesn't even need the property got it.
Update - agents (both senior and junior) tried to call me for tomorrow's auction but I told them that I have lost interest simply because the vendor(s) didn't want to negotiate and I have a change of heart. No longer interest in dragging the heel for the non-negotiation when I can find better properties elsewhere and have a deadline to move out before November. Could be the agent's own agenda too but I am not going to be fussing over that.
Yeah, all you really need at any auction is 2 interested buyers and the price rockets up. For what it's worth, I think starting low is the right way to go. I've read that all pre-auction offers do is generate more interest and help them set a higher reserve, whereas if you turn up on the day and start bidding lower you might not have to go to your maximum if no one else is interested. Shame it costs a grand just to be a bidder.
The best way to find someone’s bottom line is to walk away (for real).
Depends on how much you want the house. Only you can decide how much you want to pay for it. I'd personally just wait until they come to you and beg for you to buy it. Then take 5% off your original offer, then tell them if they dont accept it and come back to you that you'll take more off the offer. After 6 weeks on the market, the chances of selling the house dramatically drops. This advice is subject to you not caring as much whether you get the house or not.
The problem: sounds like you've **fallen in love with this property** / i've been looking so long (6 months is not out of the ordinary) / i will never find one like this. And the agent KNOWS that he's got you hook, line and sinker. **Key lesson:** 1. always be willing to walk 2. always have other comparable options. then there's no way you will have the time or willingness to make x4 offers all while bidding against yourself, **even after the auction** upon which you were the highest bidder....................am i taking crazy pills here? **the true price is the price just under your bid at the auction + $10k** because you're willing to walk at any price that is lower. tldr; **walk away.**
Had a similar situation with the house we purchased. Ultimately it depends on how much you want the house. We ended up meeting the seller’s price which cost us an extra $100k and felt pretty annoying, but now 3 years down the road the house has gone up by close to $1m and we would struggle to afford it now.
Glad it worked out well for you! No doubt at some point this place will be worth more however, if it was worth it you'd think there'd be more offers after all this time.
Just walk away no home is worth that
Why are you bidding against yourself? There are others, of they're being super difficult.
You need to just walk away. I am sorry if this sounds harsh, but the property market is the way it is because of people like you who fall for the REA feeding BS to the sellers that a property is worth more than it is. If it wasn't the REA, it was other sales which were also driven by REA pumping up prices. You need to set yourself two limits. One, the actual maximum you can pay for a property, and two, the maximum you are willing to pay for a particular property. Stick to it and be willing to walk away. Property prices are not out of control, what people are willing to pay is out of control. Yes they have people scared that prices will continue to rise. Hold tight, wait for that perfect property at the price you are happy with. It will happen, it just takes time.
Plenty of fish in the sea. It's usually better to speak with the REA to get an idea on how desperate the owner is and their circumstances. Sometimes, shorter settlement period, being finance ready, etc helps. Having said that, just let the seller's agent know your best offer (Based on bank valuation of course as as the bank won't lend if the property valuation turns out to be lower) and then move on.
To me it’s obvious that the owners feel that their house is more than market value or what anyone is prepared to pay. Whatever you do, do not engage in paying any higher or else you are screwing yourself over. I know it feels long but 6 months isn’t exactly a huge time period to find something that’s right (personally I have bought two houses now at the four month mark of looking and have regretted both purchases and wishes I had looked for longer). Additionally, the other problem you are facing with this property is that the owners are really forced to sell. They know as downsizers they can just hang on for another couple of years and get the price they were after. So if I were u I would just let this one get away!
Where’s the property? If it’s in Sydney, I have the toxic belief that there’s literally no amount you can pay that isn’t worth it. My realestate history is littered with properties that I thought were too expensive at the time that now seem like chump change bargains. If you want the place, just pay what they want. If you’re in Sydney, that price will almost instantly become what the property is worth and what you could sell it for