Estate agent playing games

BattyInNZ

Why do people put up with the business practices of real estate agents in Ireland? I made an offer on a house owned by a family friend - not asking price but 10k more than a similar property sold for down the road - and the following day the agent had put the price up by 9k. WTF? I've worked in real estate in New Zealand for 10 years and if that happened over here he'd be reported to the real estate institute and would be subject to a range of censures, up to losing his licence. I've told him I'm not playing his games and am out. It's been for sale for years and the same agent hasn't passed on previous interest so good luck finding someone else!

Ayuntamiento

Talk to the family friend directly. It's in the Estate Agent's best interest to get a property sold efficiently as they don't get paid until it's off their books. Some vendors are holding out for a particular price and won't budge on it no matter what. I've walked away from a few properties for this exact reason. I actually offered asking price on one property and was told that the venders expected to achieve 15k over asking and wouldn't accept anything less. That property is still on the market 6mths later. I'd say that agent is tearing their hair out that they had to let a full asking price offer walk away.

Ayuntamiento

However, I've come across plenty of other EA tactics which were blatantly underhanded. I was due to view a property that had been on the market for 7days approx. Got a call from the EA about an hour prior to the viewing saying that they had gone sale agreed at 5k under the asking price so it was cancelled.

I know the development well and was really keen on the property so I said i'd offer 10k over the other offer on the spot. He wouldn't entertain the offer. I've no idea how the vender was ok with him turning down 10k more on their behalf. It seemed like he sold below asking to a friend.

davo10

The EA does not put the price up without the permission or request from the vendor, and an EA cannot agree to a sale, no matter how much you bid, only the vendor can. You bid below the asking price, it was not accepted, the price has changed, I think this is the vendor realising that he/she can get a higher price.

dubrov

Why do you care what asking price it is?

It matters nothing really

davo10

Ayuntamiento wrote: »

However, I've come across plenty of other EA tactics which were blatantly underhanded. I was due to view a property that had been on the market for 7days approx. Got a call from the EA about an hour prior to the viewing saying that they had gone sale agreed at 5k under the asking price so it was cancelled.

I know the development well and was really keen on the property so I said i'd offer 10k over the other offer on the spot. He wouldn't entertain the offer. I've no idea how the vender was ok with him turning down 10k more on their behalf. It seemed like he sold below asking to a friend.

Possibly a take it or leave it cash offer situation, it's up to the vendor to accept or refuse. Posters often complain that vendors go back on their sale agreement after accepting a bid.

Ayuntamiento

Because I only view properties that I believe have a reasonable asking price relative to what's on offer. I'm aware that most are currently going for over the asking price so I build that contingency into my figures and it still helps me to guess which will come within my budget.

davo10

Ayuntamiento wrote: »

Because I only view properties that I believe have a reasonable asking price relative to what's on offer. I'm aware that most are currently going for over the asking price so I build that contingency into my figures and it still helps me to guess which will come within my budget.

You are right, but unfortunately you will be bidding against cash buyers (something like 50% of all property purchases in the last 2 years were by cash buyers) and a cash buyer is a much more attractive proposition that someone buying with a mortgage. Cash buyers are in a better position to put conditions on their bids.

Ayuntamiento

davo10 wrote: »

Possibly a take it or leave it cash offer situation, it's up to the vendor to accept or refuse. Posters often complain that vendors go back on their sale agreement after accepting a bid.

I understand what you're saying but I felt that the agent should have honored the viewing that he'd arranged with us for that evening. I was already heading out to the property when he called to cancel.
Other similar properties in that development went for 15-20k more than that property achieved in the weeks that followed. What kind of seller can turn down 15-20k extra cash?

davo10

Ayuntamiento wrote: »

I understand what you're saying but I felt that the agent should have honored the viewing that he'd arranged with us for that evening. I was already heading out to the property when he called to cancel.
Other similar properties in that development went for 15-20k more than that property achieved in the weeks that followed. What kind of seller can turn down 15-20k extra cash?

Have you dealt with them previously? Would you have given off a vibe that you are a prudent buyer who will only buy if you feel it's worth it?

http://www.irishtimes.com/business/economy/cash-buyers-make-up-47-of-all-residential-sales-1.2527337

Ayuntamiento

davo10 wrote: »

Have you dealt with them previously? Would you have given off a vibe that you are a prudent buyer who will only buy if you feel it's worth it?

http://www.irishtimes.com/business/economy/cash-buyers-make-up-47-of-all-residential-sales-1.2527337

No I had no previous experience with them but I knew I wanted this property so I stated my case very clearly, which is that I'm a FTB (so not stuck in a chain), fully mortgage approved, familiar with the area and the development and very eager to buy and move in asap.
I'm not in the habit of randomly bidding on properties or messing people around.
How do you get an EA to trust you so that they won't go with the cash buyer?

davo10

Ayuntamiento wrote: »

No I had no previous experience with them but I knew I wanted this property so I stated my case very clearly, which is that I'm a FTB (so not stuck in a chain), fully mortgage approved, familiar with the area and the development and very eager to buy and move in asap.
I'm not in the habit of randomly bidding on properties or messing people around.
How do you get an EA to trust you so that they won't go with the cash buyer?

Money. A cash sale is much quicker and easier for the vendor so the only way to appeal to the vendor is money. A cash sale might only take a few weeks, a sale with a mortgage involved takes months and may fail to complete if the survey throws up a few problems or the banks withdraw approval.

€10k won't cut it.

Ayuntamiento

It's interesting that this isn't something that the Government thought about tackling when it comes to helping FTBs. There's absolutely nothing I can do about how long it takes my mortgage to come through versus how fast a cash buyer can come up with funds. It's obviously a factor which is massively skewing the market if it accounts for 47% of all sales.

Nekarsulm

Did you check the price achieved (or at least the price reported to Revenue) in the sales price register? There could have been a cash sum to the vendor, and you are never going to be able to prove it either way, family friend or not.

perry stanley

I know of a house sale and a friend of the EA wants it. SEVERAL offers have been attempted but the EA has said too late offer / accepted made etc etc. The last I KNOW of is an offer of 40K over the asking price.
The EA has controlled the bids allthrough and will/ has arranged it so that it supposedly is being increased so that it arrives at the asking price where he suggests to the vendor (who needs an urgent sale) that there is no more interest. But someone out there IS willing to pay 40K more.
So yes they DO play games. <mod snip: no sweeping generalisations please>

seagull

perry stanley wrote: »

I know of a house sale and a friend of the EA wants it. SEVERAL offers have been attempted but the EA has said too late offer / accepted made etc etc. The last I KNOW of is an offer of 40K over the asking price.
The EA has controlled the bids allthrough and will/ has arranged it so that it supposedly is being increased so that it arrives at the asking price where he suggests to the vendor (who needs an urgent sale) that there is no more interest. But someone out there IS willing to pay 40K more.
So yes they DO play games. <mod snip: no sweeping generalisations please>

If you know this for a fact, then contact the owner. I'm sure they'd be less than impressed to find the EA trying to shaft them out of that much. It would also be grounds for terminating any agreement with the EA, so they'd be waving goodbye to their commission as well.