Estate Agent bid truthfulness

RebelButtMunch

Hi.

I was wondering do Estate agents have to be truthfull when they say they have a bid in, or actually with anything they say?

Do they have to keep records of the bids on a property and are those records available to the bidders?

They can push the price up as much as they want by making up imaginary bids.. its a bit weird in this day and age and I cant believe it can happen? Am I living in a utopia?

Thanks!

John Mason

i am very certain that the estate agent on my house pushed the price up by 10k.

i wase told there was another offer in on the house bringing it up to the asking price and that if we went 1k over the asking price the house was mine.

i subsequently found out there was no other offer. there was nothing i could about it then.

i am really sorry i didnt pull out at the time but it was 5 years ago when the housing market was mental

RebelButtMunch

An interesting update, the agent just called me and told me that there were some more bids and some people going to go for a second viewing. I'm wondering, if that was the case, why the hell is she calling me to tell me?

Hagar

I've never met an honest one yet. Wish him good luck with them and mention that you are interested in another property with another agent. Watch him squirm.

shadey

RebelButtMunch wrote: »

An interesting update, the agent just called me and told me that there were some more bids and some people going to go for a second viewing. I'm wondering, if that was the case, why the hell is she calling me to tell me?

Walk away. Why on earth would you get into a bidding war with them? In the current market, if you're not getting a top bargain you should walk straight away. The market it going to keep on dropping so take advantage of it.

You should have as little interaction as possible with the EA while viewing and post viewing. Dont let them know how interested you might be. Point out only negative things in the house. Let them know there are other properties you are interested in, preferably cheaper ones so they know ur budget might not stretch to the asking price.

dinneenp

Two can play at that game (not that I condone this....)
One could get a friend to view the property and put in a bid well under your offer. This could scare the estate agent/seller and suddenly they'd be happy with your offer.

In some countries for anyone who puts in an offer the estate agent has to keep a record that can be viewed....

Duckjob

Hagar wrote: »

I've never met an honest one yet. Wish him good luck with them and mention that you are interested in another property with another agent. Watch him squirm.

+1

If you do this, more than likely you'll have the agent ringing you up in a couple of weeks to tell you the bid 'fell through', at which point you have him by the balls.

Getting into a bidding war in the current market is very very foolish, unless you actually like giving thousands of euro away.

unklerosco

Duckjob wrote: »

+1

If you do this, more than likely you'll have the agent ringing you up in a couple of weeks to tell you the bid 'fell through', at which point you have him by the balls.

Getting into a bidding war in the current market is very very foolish, unless you actually like giving thousands of euro away.

Agree with that.. We went to look at apt late last year. EA said there was a load of interest in it and that he'd 3 more viewings that day. I asked about the price and he said he was looking for the asking at a minimum... I said grand, I'd be in touch. The next week he rings me to see if I was still interested, said I was looking around at a few other places. A month later he rings me to see if I'm still interested and that the price had been lowered...

Glad I left it now, back home with the folks clearing off all my debts and working on a savings account.. I plan to be debt free with a decent deposit ready for when the time comes...

uncanny

I'm sure Mr. P Hantom is still an enthusiastic bidder on Irish property these days.
Just like his frequent rival Mr D Ummy.

I'd have one word for anyone who bid against me on Irish property

'congratulations'

RebelButtMunch

Ive played the 'im also looking at a property nearby thats more reasonably priced" card (it actually exists). Lets see what happens. I'll post any updates.

antoinolachtnai

Remember that the agent acts on behalf of the seller. He is not your friend, or a neutral middle man. I suppose sellers hire agents to do the things they might fell bad about doing themselves.

Hagar

antoinolachtnai wrote: »

Remember that the agent acts on behalf of the seller.

That is not even entirely true. He's acting in his own interests more than anything else. Your average EA when faced with a quick and easy cash sale for a few grand less than a more complicated, lengthy sale to someone organising finance will sell to the lower buyer every time to get his grubby little paws on his commission a bit sooner. He may never even let on that the second potential buyer existed when talking to the seller. A drop of €5,000 on the sale price costs the seller €5,000 but only costs the EA maybe €100 in commission. He's not going to bust his ass for another €100. Black enameled baxtards every last one of them.

antoinolachtnai

You are referring to the medium-to-worst case scenario.

I was referring to the best case scenario.

Victor

That are not allowed lie about the property, but there is a lot of "mere puff" out there.

JuliusCaesar

Victor wrote: »

That are not allowed lie about the property,

but about other bids............hmm, no law about that.

RebelButtMunch

JuliusCaesar wrote: »

but about other bids............hmm, no law about that.

Amazing that isn't it. I wonder how much of a factor that was towards the bloated house prices of recent times. I dont understand why this isn't regulated.

EKRIUQ

RebelButtMunch wrote: »

Amazing that isn't it. I wonder how much of a factor that was towards the bloated house prices of recent times. I dont understand why this isn't regulated.

It is regualted and nearly all property service providers have signed up but the government are still arsing around about it and have not fully finalised plans.
It's a legally binding agreement between property service providers, (auctioneers, management agents, estate agents)

Here's more details

http://www.npsra.ie/website/npsra/npsraweb.nsf/page/index-en

Once the new authority has been established on a statutory basis, its main functions will be to:
operate a comprehensive licensing system covering all providers of property services, i.e. auctioneers, estate agents, house agents and property management agents;
set and enforce standards for the grant of licences and provision of services;
establish a system of investigation and adjudication of complaints;
promote increased consumer protection and public awareness;
establish a Compensation Fund to compensate parties who lose money as a consequence of the dishonesty of a licensee.

jackal

EKRIUQ wrote: »

It is regualted and nearly all property service providers have signed up but the government are still arsing around about it and have not fully finalised plans.
It's a legally binding agreement between property service providers, (auctioneers, management agents, estate agents)

Here's more details

http://www.npsra.ie/website/npsra/npsraweb.nsf/page/index-en

So you are saying its not regulated and there is no legally binding agreement at this time.

EKRIUQ

jackal wrote: »

So you are saying its not regulated and there is no legally binding agreement at this time.

Their is a legally binding agreement that Property Service providers have signed and are placed on the register here

http://www.npsra.ie/website/npsra/npsraweb.nsf/page/publications-licensees-en

The Bill is published but not passed into law yet, but having said that Estate Agents and Auctioneers are still bound to that.

jackal

EKRIUQ wrote: »

Their is a legally binding agreement that Property Service providers have signed and are placed on the register here

http://www.npsra.ie/website/npsra/npsraweb.nsf/page/publications-licensees-en

The Bill is published but not passed into law yet, but having said that Estate Agents and Auctioneers are still bound to that.

From: http://www.npsra.ie/website/npsra/npsraweb.nsf/page/publications-codes-en

It should be noted that, while the Code is voluntary at present, once the Authority is put on a Statutory basis the Authority will have the power to make the Code a legally binding instrument.

Dont get me wrong, I will welcome it when it is enacted, and adhered to, and enforced where failure to adhere to it is found. Its quite comprehensive.

For now, this says it all:

What is The National Property Services Regulatory Authority

Page under construction

johndaman66

Aside from the OP's initial question are there any rules governing how long an offer will stay open on a property if it is not immediately accepted?

Having looked through the property bubble bursting thread it would appear that the general rule of thumb is when bidding for any properties in Ireland at the moment to only offer half the asking price...or so seems to be the general advise. This seems to be a bit too extreme to me and unsound advice. Having viewed a number of 3 bed semi detatched properties in Limerick in the last few days all with an asking price of 220k to 240k and all in respectable areas does this mean that an offer of 110k to 120k may well be accepted? ... Surley these houses cost a lot more to build. Or would it be a waste of time and embarrassing only o put in such offers?

Are the Estate Agents obliged to communicate all offers back to the seller and do they remain open indefinately for as long as the house remains on the market?

jackal

johndaman66 wrote: »

Having looked through the property bubble bursting thread it would appear that the general rule of thumb is when bidding for any properties in Ireland at the moment to only offer half the asking price...or so seems to be the general advise. This seems to be a bit too extreme to me and unsound advice.

I think you are right. While houses might be ultimately worth 1/2 the asking price, i.e. in a year or two, that is not what they are currently valued at across the market. If you believe the house is only worth 1/2 the asking price, then offer it. In most cases this will be rejected out of hand. 1/2 the asking is not a normal negotiating opening position. Only someone who is under extreme pressure to sell will entertain such an offer.

So its up to you. You can go round offer 1/2 asking, but in all likelyhood wont have your offer taken seriously by most. If you want a house now then pay the market price now. If not, sit it out and wait for the market to meet your expectations. The market (in which very little is selling) has not dropped 50% yet. Remember, some sellers have recalibrated their expectations and repriced to match the market, which is currenty down 20-30% and some have not. People who have already re-priced - i.e. was 400, now 290 are not going to be interested in an offer of 145. The people who still have it priced at 400 are clearly in la la land and are not going to entertain an offer of 200.