Buying a house. Multiple Offers! [Archive]

poidda

13th February 2007, 07:31 PM

OK, I'm new to the game as I'm looking at buying my first house, and have recently come across agents taking multiple offers to the Seller. We've put 2 offers in on flats (offering the asking price) only to miss out because an investor had cash.

I thought the deal was once an offer was made, than no other buyer could make an offer???

What's the difference between this practice and and an Auction except the buyer cant increase their offer once it's knocked back?

What's stopping the real estate scum from telling you that there are a dozen offers on a house when in fact there are none, forcing you to offer a higher price?

goughy

13th February 2007, 07:39 PM

I don't know if they can take multiple offers or not. I know that regardless of the offer they are spose to take it to the client regardless of whether they think they will accept it or not. And I think it's only ethics that's stopping them from telling you stories about non-existant offers etc. There are tons of stories about about shonky practices.

We're gonna be going through it again in the near future, except we'll be selling our place as well. You've reminded me how much this can suck.

Although once you get a place you will be on a high!

Hooker

13th February 2007, 08:31 PM

Shonky practices , tell me about it . Just been through this s-it and ended up costing me $480 for a building and pest inspection and the owner pulled out.
Offers mean nothing unless both parties sign a contract , in my case the owner wouldn't sign and the agent assured me that my offer would be accepted and he arranged for the inspection on my behalf. After the inspection came up ok the owner asked for more money and I told him to stick it.
That was 5 months ago and the place is still on the market and I ended up with a much better deal.
Remember , both parties have to sign to make the offer stick.

PeteyD

13th February 2007, 08:39 PM

A seller is not obligated to accept an offer. Until the contract is signed there is no sale (in QLD, regulations vary from state to state).

AndyP

13th February 2007, 08:41 PM

I don't know what is and isn't allowed with multiple offers, but I can tell you that I when I made an offer on my current house, I was making a simultaneous offer with another couple on the table next to us!!!!!!!

We had no hesitation in offering the asking price, as we thought it was worth it. The couple next to us must have "bid" lower.

That was a unique circumstance. What you've been through seems somewhat dodgier.
There should be some body you could ask to see if it's legit.

Just remember that the real estate agent is not your friend. ;)

McCoy

13th February 2007, 09:07 PM

In the Red Blazer Realty office, Lionel Hutz approaches Marge.
Lionel: Marge, I had a lot of calls about you! Customers love your "no
pressure" approach.
Marge: Well, like we say, "the right house for the right person!"
Lionel: Listen, it's time I let you in on a little secret, Marge. The
right house is the house that's for sale. The right person is
anyone.

When we were house hunting we were looking at a high set at Thornlands. The Agent saw my wife was keen on the place, knew we were first home buyers and tried to screw us over claiming that someone was about to make an offer at the asking price.
I flat out said I didn't think it was worth the asking price anyway, so we left. An hour later he called and said the owner's would probably accept $160k which was $5k less than what they were asking, I said I still wasn't interested, he then tried to talk me into it by claiming the block alone was worth $140k. I agreed with that and said if he burnt the place to the ground I'd buy the block for $140k. Didn't hear back from him after that.

My advice would be to take your time and make sure you're making the right decision. Buy the right place and it's all good, but if you rush it and stuff it up you'll be in a world of hurt. We ended up buying a place in Alex Hills which we love, said we were going to spend the next 20 years raising our kids in it. Less than 2 years later we were living in Wodonga :-s

Moe Norman

13th February 2007, 09:53 PM

Poidda,

They can take multiple offers - but its rare for someone to reject an offer of the asking price!

Fishman Dan

14th February 2007, 08:57 AM

Don't get sucked in. They will try and screw you when it should be a sure thing. Name your price and walk away if they start playing games. It's hard, but don't 'fall in love' with any property until you have exchanged contracts!!

Moe Norman

14th February 2007, 09:02 AM

my wife cried in front of a rel-estate agent once.

Needless to say, we didn't get the price we wanted....

kpac

15th February 2007, 12:16 PM

i didn't think ANYONE offered the asking price?

damoocow

15th February 2007, 10:37 PM

Poidda - having bought and sold a few houses over the years, including investments.what you hear about real estate agents as being pond scum is entirely true.....multiple offers [whether true or not] are the norm nowadays [especially at the moment with lots of investors trying to get good rentals]...my advice is what I have always done..decide for yourself on your price and simply stick to it.take no other course - when we buy we name our price and NEVER negotiate...of course you may lose especially if someone is emotive about the property, but don't let the real estate turds try to manipulate you.......and best of all it is fun watching them squirm !!

damoocow

goughy

15th February 2007, 10:39 PM

When we bought our house we made our offer, the agent came back to us with their counter offer - Robyn started jumping up and down and clapping her hands. How much bargaining power was left after that.

She hates out house now !!

Rusty

16th February 2007, 06:50 PM

poidda

26th February 2007, 10:16 AM

3oneday

26th February 2007, 10:51 AM

Ask alo ;)

andylo

26th February 2007, 11:11 AM

Ask alo ;)

:?::!::?::!:

What do I know?

Fishman Dan

26th February 2007, 11:24 AM

OK, so for all those property gurus out there, I'm after a few basic tips. I bought a unit over the weekend and need to organise the Building and Pest inpection this week. Who should I be getting to do this? Some big company, or your local builder? Can anyone recommend anyone in Brisbane?

We used a mob called Tyrrell's, not sure if they are in Brissy though. I assume you signed with a cooling off period?

Another thing is to ask the real estate agent if they have sold any other units in the block, and if so can they get hold of the report for that sale. That's not a particularly nice thing to do, but real estate agents aren't nice, so they don't mind asking. We had the same woman who sold us our unit try and get me to give her our $300 report - for nought! I told her it would cost her/their client $150 ;)

goughy

26th February 2007, 06:38 PM

If you haven't made the building and pest inspection a condition of the purchase you may not need to worry 'bout getting them done ;)

just

26th February 2007, 07:22 PM

Poidda
There are specialist building and pest inspectors for home buyers, just look them up in the yellow pages. If you didn't put in building and pest clause get one done anyway, if you get it done before the cooling off period ends you can cancel the contract if you don't like it, or if you don't get it done before the end of the cooling off period you can cancel on finance. If the unit is in an older building its especially important to get it done to make sure there are no long term problems that could bite you on the bum.
Just

AndyP

26th February 2007, 07:28 PM

You can get separate building and pest inspectors, or you can get someone that does both.

Moe Norman

26th February 2007, 07:33 PM

get separate ones mate

Fishman Dan

26th February 2007, 07:41 PM

The other thing is to get the minutes of the past AGM's for the body corporate. If it's a block of units that are 20+ years old, the chances are there isn't going to be anything structurally wrong worthy of too much note. But you might get more of an idea about the general upkeep costs from AGM minutes.

just

26th February 2007, 07:58 PM

The other thing is to get the minutes of the past AGM's for the body corporate.
Poidda
Engage someone to do your conveyancing (if you haven't already), its worth the money (I can suggest someone if you want to PM me). They will take care of all the searches, which will include all of this stuff and also look at the books, fees, insurance for the Body Corporate.

If it's a block of units that are 20+ years old, the chances are there isn't going to be anything structurally wrong worthy of too much note. But you might get more of an idea about the general upkeep costs from AGM minutes.
Some structural problems can take many years before they surface. The drought may have also caused additional structural problems to buildings which weren't necessarily evident before. While problems in older buildings may not necessarily be structural there are also other maintenance issues which can cost the Body Corporate, and therefore you, big time i.e. problems with lifts, pools, painting, renovations etc. This is where the searches are important and its important that you read them when you get them done. Its your responsibility, not your solicitors, to read and understand them and make sure you ask questions if you don't understand.
Its a big outlay, unless you become wealthy you aren't going to make to many financial decisions of this magnitude, take your time and be careful.
Just

damoocow

26th February 2007, 10:02 PM

Poidda - I can thoroughly recommend a guy we have used before for Building and Pest.and we found him fantastic. detailed reports and honest......actually for one of the inspections we got from him he found some defects which resulted in us pulling out of the purchase.........his name is Andrew Mackie - Smith [no relation] and he runs a business called BuildingPro at Paddington - 33111997.................also you will prob be aware of this but the unit block / body corp. should have a sinking fund to cope with repairs..may be a good idea to see if it is enough ..

damoocow

poidda

27th February 2007, 12:08 PM

Cheers for all the tips everyone. I had pretty much everything covered. I got building, Pest and solicitor contacts from my boss who's done all this a couple of times recently, so all sweet.

Cheers

markTHEblake

14th March 2007, 10:28 AM

What's stopping the real estate scum from telling you that there are a dozen offers on a house when in fact there are none, forcing you to offer a higher price?

I realise this is a bit late but this a common misconception about Real Estate Agents, the buyers are not the ones getting screwed its the sellers. If you have ever sold a house you would agree. If you have ever auctioned a house you probably still feel sick in the stomach.

Chances are, that if he says there has been a dozen offers on a house, then that would be the truth, there is little motivation for him to lie to a buyer in this instant. does anyone really think he cares whether he gets $10000 commision or $10200. To him it only matters whether he gets $0 or more than $0 (Real Estate agents are not like used car salesman, who pockets every cent when the price is upped.)

And the real estate agent principle goal is driving down the sellers price through a series of tactics that make most people cry. Becuase he knows once the selling price is low enough it will sell, and he doesnt care who too and how much.

If the agent is trying to talk up your offer, it simply means that he knows the seller wont accept it.

In a busy market and you have found a popular house, and you agree you would pay $400k for it, its not clever to offer $380k, as someone else might offer $390k, and you lose the house. Its a tough one as we are all cheapskates.

Oh, yes, if there are multiple offers on a house, the seller can accept whichever one he likes, and not necessarily the highest price. Once he countersigns it and is returned to you, it is legal and he cant get out of it, unless he has a Sunset Clause on it. (means if he gets a higher offer later he can back out)

You must get legal advice before signing an offer, if there are any Extra Conditions on a Contract they are always for benefit to the seller not buyer - beware of these. Usually these are Sunset clauses, and watered down building and pest inspections.

dont ever sign a contract with these clauses on it, the impact on you can be both financially and personally devastating

poidda

11th December 2007, 06:05 PM

Same shit, different agent!

Looking at buying an investment property, and these wankers are all the same. :roll:

OMG

11th December 2007, 09:09 PM

Best advice I can give is to not ask a bunch of golfers who have bought and sold maybe one or two houses in their lives (no offence guys, but it is like asking a 27 hcper for swing advice)

Go to a forum that is all about this and read through some of the threads there...a good one is the Jan Somers site and forums...lots of stories and good advice!

Peter

11th December 2007, 09:17 PM

markTHEblake

11th December 2007, 09:22 PM

Best advice I can give is to not ask a bunch of golfers !

Maybe he is asking those of us here that he knows work in the industry, because he trusts them.

Unlike some other forums where its impossible to tell the pros telling the trith from the yobbos talking out of there arse.

rick3003

11th December 2007, 09:41 PM

Same shit, different agent!

Looking at buying an investment property, and these wankers are all the same. :roll:
What happened Peter? Do you have an offer and acceptance?

OMG

11th December 2007, 10:22 PM

Good advice OMG, although I wouldn't automatically discount the value of information available here.

Golfers will generally have jobs, and some of the people offering advice could be extremely well informed on this issue. Secondly, even if they don't have a lot of experience it doesn't hurt to get advice from people you know (ie. not just a random on the internet that could have a vested interest).

Maybe he is asking those of us here that he knows work in the industry, because he trusts them.

Unlike some other forums where its impossible to tell the pros telling the trith from the yobbos talking out of there arse.

Sorry, maybe I didn't state it correctly...I didn't mean not to take anyones advice, I was just aiming at the guys who have only ever bought and sold maybe one or two houses ever.

a bunch of golfers who have bought and sold maybe one or two houses in their lives (no offence guys, but it is like asking a 27 hcper for swing advice)

If there are some low hcpers then by all means ask them :smt023

Moe Norman

11th December 2007, 10:48 PM

we have brokers here, investors and hell we even have developers!

not a bad place to ask at all.

Jan Somers is a bit of a pissing contest on the other hand....

damoocow

11th December 2007, 11:06 PM

Must say as an investor myself I don't rate Jan Somers too highly in terms of advice - to me she had a lot of things go her way around the time the market was in a different cycle to what it has been for a while and she seems to have been doing well out of that [books / appearances / ongoing market increases] for some time.................do your own research - know what you can afford - be prepared to give it all time to grow - good luck

damoocow

OMG

12th December 2007, 08:47 AM

we have brokers here, investors and hell we even have developers!

not a bad place to ask at all.

Jan Somers is a bit of a pissing contest on the other hand....

Have to disagree with this, been on the Somers forums for years now and I don't think you could be further from the truth.

Must say as an investor myself I don't rate Jan Somers too highly in terms of advice - to me she had a lot of things go her way around the time the market was in a different cycle to what it has been for a while and she seems to have been doing well out of that [books / appearances / ongoing market increases] for some time.................do your own research - know what you can afford - be prepared to give it all time to grow - good luck

damoocow

Damoocow, I was referring more to the forums than actually following Jan Somers way of investing. There are many different schools of thought on how to invest and Somers is just one. Quite often the style that suits is the one that you can "sleep at night" with.

Webster

12th December 2007, 09:15 AM

OMG do you work in the property or finance industry's? Do you have any qualifications?

Moe Norman

12th December 2007, 10:08 AM

he posts on Jan Somers forums mate - best qualification you can get.

All the brokers, valuers and developers on here have no idea !

poidda

12th December 2007, 10:33 AM

What happened Peter? Do you have an offer and acceptance?

OK, here's where I am at. We're not desperate to buy, and will just buy something when the right place comes up. As we're in no hurry, we've decided to refuse to deal with agents taking multiple offers. Simply because we're not going to be forced into offering more than what we want to. So we found a good place, and decided to put in an offer. The first question we asked was "Are you taking multiple offers", and got the answer "Of course not".

So we filled out all the forms asking price was 335k, and we offered 325k. He was supposedly faxing the offer over immediately. Well 24 hours later and I got the call from the real estate asking me to come into the office as there was a few minor details to sort out. He wouldn't discuss it over the phone. I told him I couldn't make it, and he was desperate to get me into the office, but I just kept telling him no.

In then end, I finally got it out of him that suppossedly he had received another offer, and seeing we were best mates, he'd give me the chance to up my offer first. (ie. an auction) I asked him if our offer had been taken to the selller and got the answer "uummm, ahhh, welll, i called him, yes". I told him he was wasting his time, and that our original offer still stands and there's no reason for me to come into the office until we get accepted/rejected from the seller.

I was under the impression that if the agent was taking multiple offers to the seller, that the buyer had to be notified in writing?!?! Anyone know if this is right?

So that is where my wanker call came from.

Iain

12th December 2007, 10:53 AM

So that is where my wanker call came from.

Fair call then....

Webster

12th December 2007, 11:08 AM

If you have ever auctioned a house you probably still feel sick in the stomach.

Blake, I am interested in why you would say this as I would take the opposing viewpoint perhaps 90% of the time. Please explain.

Jack.

Fishman Dan

12th December 2007, 11:32 AM

I was under the impression that if the agent was taking multiple offers to the seller, that the buyer had to be notified in writing?!?! Anyone know if this is right?

Poidda - when we bought our place a few months ago our agent insisted we e-mail our offers to the agent so he "had it in writing".

I guess the old addage applies - don't fall in love with any property until you move in. Until then you have to be in a frame of mind that you are prepared to walk away if things start to get silly.

OMG

12th December 2007, 01:22 PM

he posts on Jan Somers forums mate - best qualification you can get.

All the brokers, valuers and developers on here have no idea !

Did you read post #32 Moe?

I disagreed with you on your assessment of the Somers forum, not on taking advice from the above. So please be a bit polite and don't twist what I say into something that wasn't anywhere near what I said.

senecio

12th December 2007, 02:08 PM

When we bought our current house (4 yrs ago) the estate agent went through all of their "in house" rules with us before we put our offer in.

The one that stands out was that the agent could not accept any further offers until the one being considered (ours) had been rejected by the vendor. Even if the vendor rejected our offer, we would be given a chance to make another offer before they could accept an offer from another party.

In the end it wasn't required as they accepted our first offer, but it was nice to know that there would be no Dutch auctions or playing one offer off against another. We'll be happy to deal with this agent again in the future.

Fishman Dan

12th December 2007, 03:39 PM

When we bought our current house (4 yrs ago) the estate agent went through all of their "in house" rules with us before we put our offer in.

The one that stands out was that the agent could not accept any further offers until the one being considered (ours) had been rejected by the vendor. Even if the vendor rejected our offer, we would be given a chance to make another offer before they could accept an offer from another party.

This is where the trouble lies.

The markets are vastly different in each state. The laws are remarkably different in each state. But in each case, I don't think anything is cement until contracts are exchanged.

It's a mugs game. Having said that, I now work for a commercial real estate company. :-s

markTHEblake

12th December 2007, 07:10 PM

Blake, I am interested in why you would say this as I would take the opposing viewpoint perhaps 90% of the time. Please explain.
.

You would probably need to read Jenmans book to understand fully, i am referring to the Agents tactics to get the seller to drop their price.

As auctions have been reasonably successful in the cities during the boom, some people might say Jenman is wrong. But when there is only one person really bidding at an auction the result will be piss poor for the seller.

markTHEblake

12th December 2007, 07:16 PM

I was under the impression that if the agent was taking multiple offers to the seller, that the buyer had to be notified in writing?!?! Anyone know if this is right?.

I dont think so. But he is obligated to present your written offer to the seller.

I doubt your agent is motivated by a higher commission to increase your offer. The increase means stuff all to him ( i have said this before i think) - we are talking about $200 or so versus the $10,000 odd he will lose if no sale goes through.

If he tells you that he has received another offer then I would say he is simply telling you the truth. I am more likely to believe that he thinks your offer is too low for the seller to accept. If he is a good agent though he should be able to beat the seller down to your price.

You can increase the value of your offer by making a larger deposit, or showing proof of your finance approval (not give him, just show it). Such an offer will crap on a slightly better price, but with no deposit nor finance approval het.

markTHEblake

12th December 2007, 07:20 PM

The laws are remarkably different in each state.

Correct, the situation regarding contracts and offers Poidda is commenting on is different here than NSW (and probably Vic too). Its a different process so people that dont have experience in buying/selling property in Qld dont really have much to offer :lol:

Webster

12th December 2007, 07:26 PM

You would probably need to read Jenmans book to understand fully, i am referring to the Agents tactics to get the seller to drop their price.

As auctions have been reasonably successful in the cities during the boom, some people might say Jenman is wrong. But when there is only one person really bidding at an auction the result will be piss poor for the seller.

I have very little time for Jenman. He is an arrogant wanker who thinks that every market is the same. He has embarassed himself many times when coming into the Melbourne market sprouting his usual brand of crap.

To sell privately in the Melbourne market at the moment is potentially costing you between 10-15% in price.

Bruce

12th December 2007, 07:33 PM

But when there is only one person really bidding at an auction the result will be piss poor for the seller.

To sell privately in the Melbourne market at the moment is potentially costing you between 10-15% in price.

Both my brother and sister have been in the market here in Melbourne in the last year. My brother finally got a house about 5 months ago and my sister signed her contracts just yesterday. Auctions have 4 or more serious bidders to compete with. Tears and hysterics at the fall of the hammer were common occurrences for unsuccessful bidders. It is fricken madhouse down here at the moment.

OMG

12th December 2007, 08:08 PM

To sell privately in the Melbourne market at the moment is potentially costing you between 10-15% in price.

Do you work in the industry? Quals? (I am not trying to be smart..just wondering)
Why do you say that?

Webster

12th December 2007, 10:49 PM

Do you work in the industry?

Yes

Quals? (I am not trying to be smart..just wondering)

Yes

Why do you say that?

Because I know what I am talking about.

Jenmans theories might work in the Sydney market but in Melbourne he is way off the mark.

OMG

12th December 2007, 11:32 PM

Jenmans theories might work in the Sydney market but in Melbourne he is way off the mark.

Would depend on the state of the market where ever it is.
A couple of his theories are correct:
His ethics theories work everywhere, I believe he has it pretty right in that area.
And the one about you never achieve the highest price at an auction.

I agree that private sale is very rarely a good thing, at least vs a decent real estate agent...if for no other reason than the seller is buffered from the buyer.

rick3003

14th December 2007, 02:03 PM

I work in the industry and I take a very simple approach.

If I recieve an offer from a potential purchaser I will submit this to the vendor regardless. This generally leads to a counter offer.

Once we have an offer and acceptance I give the purchaser a copy of the contract and tell them the property is on the market until they sign the contract and pay 10%. First purchaser in with a signed contract, section 66w (waiving the cooling off period) and 10% deposit wins the race.

And by the way Jenman is a tosser and his system doesn't work too well in Sydney either.

Lambolica

14th December 2007, 02:28 PM

Dependant on what you own circumstances are, dictates what System, may work. At the end of the day, I take advice from just about anywhere and apply it to the way I like to do things. With the proper due dilligence to back up any descision, and an exit strategy in case.

Some things work others don't, but that doen't mean they don't work for everyone, They just don't work for me.

I work alot with buyers agents, and rarely get involved with realestate agents unless I'm selling, Unless I'm doing research into an area.

Any purchase I make is purely based on statistics and numbers, When I make an offer it stays. If the agent comes back with a counter offer or deal, my origonal offer drops. The real estate agent really doesn't care, but it gets the Vendor thinking if there are very few interested parties involved.

Cheers
Simon

poidda

14th December 2007, 02:43 PM

OK, the latest on this. Our original offer was rejected without a counter offer. We then offered the asking price and it was accepted. We are happy with the price and have a 60 day settlement, so in 2 months it'll probably increase by the extra 10k anyway.

This doesn't mean the real estate isn't a wanker still. He was still trying to convince us that we were best mates, and that there was another offer in. But the seller left it upto him to decide which contract to sign. And seeing we were first, he'll do us a favour. The other offer was for a couple of thousand more, but had a clause in it regarding a pet. blah blah blah.

AndyP

14th December 2007, 03:18 PM

I work in the industry and I take a very simple approach.So are you a wanker like poidda says you are?

Fishman Dan

14th December 2007, 03:25 PM

Once we have an offer and acceptance I give the purchaser a copy of the contract and tell them the property is on the market until they sign the contract and pay 10%. First purchaser in with a signed contract, section 66w (waiving the cooling off period) and 10% deposit wins the race.

But if someone offers a contract with cooling off period with a 0.25% payment, are they more/less likely to gain acceptance?

This is the problem with real estate currently. By Poidda's definition, the first person to send an e-mail with an offer is in the box seat. By your explanation (and I believe the current and legal one in NSW), nothing is legal until contracts are exchanged (the agent will verbally inform you when the exchange is taking place) and the full deposit (10%, or 9.75% following the initial .25%) is paid.

Again - laws change state by state, and even then they mean nothing to cowboys out there.

14th December 2007, 03:31 PM

But if someone offers a contract with cooling off period with a 0.25% payment, are they more/less likely to gain acceptance?

This is the problem with real estate currently. By Poidda's definition, the first person to send an e-mail with an offer is in the box seat. By your explanation (and I believe the current and legal one in NSW), nothing is legal until contracts are exchanged (the agent will verbally inform you when the exchange is taking place) and the full deposit (10%, or 9.75% following the initial .25%) is paid.

Again - laws change state by state, and even then they mean nothing to cowboys out there.

Like what Rick said, nothing is concrete until 10% deposit is paid contract is exchanged. My wife paid the 0.25% deposit on a house, she was told a week later that the seller had changed their mind and want more money.

amanda

14th December 2007, 03:57 PM

I have to say that we used a Jenman agent here in Sydney to sell and she (& her firm) were fantastic! We only had 1 interested party but she squeezed every last cent out of them.

She also looked after our buyers really really well.

We were told that usual selling time is 2-3 months in our area. We sold in 4.5 weeks - and at a price that is $10-20k above the price any similar sized apartments have sold in our area in the last 6 months (even the last 2 yrs as the market has been flat)

So good ethics seemed to work for us!

Fishman Dan

14th December 2007, 04:03 PM

Like what Rick said, nothing is concrete until 10% deposit is paid contract is exchanged. My wife paid the 0.25% deposit on a house, she was told a week later that the seller had changed their mind and want more money.

Tony - then I believe they broke the law. I thought the Cooling Off period is part of the exchange? It's a mugs game.

We fluked it and will never look back. The house we bought in October was one of the first we looked at, first we bid on, accepted... the rest is history. It was the only weekend we spent doing inspections. Some people can go forever trying to find the right place.

Poidda - if you had to raise your price to secure something you've thought long and hard about, then congratulations and hope it all goes well. No point losing something that you want over a measly $5k (over 30 years!).

amanda

14th December 2007, 04:21 PM

Tony - then I believe they broke the law. I thought the Cooling Off period is part of the exchange?

My understanding is that the cooling off period is usually 5 days - but can be extended at the request of the vendor or buyer.

At any point during the cooling off period either party can withdraw. We had a nervous wait in our inbox as we were sitting out our cooling off period on our sale while in Vietnam!

PeteyD

14th December 2007, 04:24 PM

Do they have a cooling off period in QLD?

rick3003

14th December 2007, 04:36 PM

A contract can be exhanged with a 0.25% and the balance due at the end of the cooling off period (5 days in NSW) If the purchaser pulls out they lose the 0.25%. This is a good way to secure a property if you need to finalise finances and building inspections etc. You have to be prepared to lose the 0.25 though.

The Jenman system is really no different to a private treaty sale. Saying that auctions don't work is ridiculous. The man himself is a wanker, not so much his systems.

Auctions work very well for properties in high demand, otherwise private treaty is the way to go.

Am I a wanker cause I work in the industry??? I'll let the people that know me decide that :)

poidda

14th December 2007, 04:39 PM

Am I a wanker cause I work in the industry??? I'll let the people that know me decide that :)

Definately not. The last real estate we dealt with was brilliant.

But in saying that, this doesn't guarantee you're not a wanker! ;)

just

14th December 2007, 06:06 PM

Do they have a cooling off period in QLD?

Yeah Pete - 5 business days. If you pull out during the cooling off period you will be refunded your deposit less an amount equal to 0.25% of the purchase price of the property. Auctions have no cooling off period.

OMG

15th December 2007, 05:56 PM

Webster

15th December 2007, 06:06 PM

You have to admit that it is very rare that an action will actually get the top dollar for a sale. As Jenman says, the winner might not have been anywhere near their top dollar so in effect are purchasing at a discount.

Crap. Yet more Jenman crap. What if the seller was told by their Jenman agent to take $440k at private sale when there are two (or more) bidders who value the property higher? They might have limits of $460k and $480k. At auction you would get minimum $460k, probably more because the $460k bidder may go beyind their limit to make sure they get the property. The Jenman method never gets the highest price that the buyers are prepared to pay, it only gets the set price that the buyer is prepared to accept.

Jenman is full of shit.

OMG

15th December 2007, 06:24 PM

Crap. Yet more Jenman crap. What if the seller was told by their Jenman agent to take $440k at private sale when there are two (or more) bidders who value the property higher? They might have limits of $460k and $480k. At auction you would get minimum $460k, probably more because the $460k bidder may go beyind their limit to make sure they get the property. The Jenman method never gets the highest price that the buyers are prepared to pay, it only gets the set price that the buyer is prepared to accept.

Jenman is full of shit.

That's a different topic though Jack, that can happen in any private sale.
But I see your example has shown that the maximum price will never be reached..$480k. That was my only point I was trying to get across.

rick3003

15th December 2007, 06:26 PM

You have to admit that it is very rare that an action will actually get the top dollar for a sale. As Jenman says, the winner might not have been anywhere near their top dollar so in effect are purchasing at a discount.
Would have to disagree with you there. If a property is in high demand in a sellers market the only way to get top dollar is auction.
There arent to many jenman agents doing well in Sydney thats for sure.

Webster

15th December 2007, 06:32 PM

That's a different topic though Jack, that can happen in any private sale.
But I see your example has shown that the maximum price will never be reached..$480k. That was my only point I was trying to get across.

It doesnt happen in private sale because the property would be sold under Jenmans theories for $440k. At auction is sells for between $460k and $480k.

Tell me this - how do you ever find out what the buyers maximum price is when you sell by private sale, when it is the seller that determines the price and not the buyer? The answer is that you don't. And thats why Jenmans theories are flawed. Under the example quoted above, the seller probably thinks his Jenman agent is wonderful because they sold their property quickly at a price which their agent has convinced them is a great result, but in reality they have cost themselves tens of thousands of dollars. Eithics my arse...