Estate Agent Tactics!

witchgirl26

I Am The Law wrote: »

Why not go and view the house? And make a low offer. If we all decide not to view because the asking price is above our budget, we will never see houses prices fall to realistic affordable levels, prices will continue to rise, 10% and 20% will be harder to save for, and around and around and around we go ...............................................:rolleyes:

Actually the problem lies with people trying to afford houses they couldn't. If fewer people are viewing the high prices houses, then the prices will have to fall due to lack of interest. I agree with going to view houses at the top end of your budget but going to one that's 10k over your max & putting in an offer of 40k less than the asking isn't generally going to end well.

Also there's the element of personal disappointment when you fall in love with a house you can't afford.

voz es

The_Conductor wrote: »

The EA does have to convey all offers to the vendor- however, there is absolutely nothing stopping them from conveying them to other parties too- to play prospective purchasers off against one another...........

I think it is very important to realize that if a party expressed an interest in a property they would be very annoyed that they were not consulted prior to a property going sale agreed.
It is completely reasonable to assume the EA is trying to get the best price for a property, also their is a assumed responsibility that a competent EA would also inform interested parties of a property reaching a figure considered by the selling party acceptable prior to it going sale agreed.

BabysCoffee

gaius c wrote: »

His sums would seem to indicate that deposit is an afterthought. He can borrow 290k and is talking about borrowing the remaining 12k to make up 302k, i.e. a 100% mortgage.

Yes I got this impression too.....

I Am The Law

witchgirl26 wrote: »

Actually the problem lies with people trying to afford houses they couldn't. If fewer people are viewing the high prices houses, then the prices will have to fall due to lack of interest. I agree with going to view houses at the top end of your budget but going to one that's 10k over your max & putting in an offer of 40k less than the asking isn't generally going to end well.

Also there's the element of personal disappointment when you fall in love with a house you can't afford.

Agreed, now that's an expensive habit!

April 73

witchgirl26 wrote: »

Also there's the element of personal disappointment when you fall in love with a house you can't afford.

That is true because generally looking at houses at the very top end or beyond your budget, ruins the appeal of the ones you can comfortably afford.

realdanbreen

davo10 wrote: »

Probably to stop people like yourself from knocking on their door at nine o'clock at night. EA's market the property and deal with all the enquiries and crap that go with the buying and selling of a property, all the seller has to do is reject or accept the offer,

Leaving aside your silly assumption that a serious buyer would pester someone at 9pm, why does anyone with any bit of common sense need to have a third party involved when buying or selling a house. Fair enough if you are loaded or just too busy to speak with prospective buyers/sellers . I have happily survived so far without ever feeling the need to give money to Estate agents/Insurance brokers/wedding planners/fortune tellers or any other group of so called experts.

davo10

realdanbreen wrote: »

Leaving aside your silly assumption that a serious buyer would pester someone at 9pm, why does anyone with any bit of common sense need to have a third party involved when buying or selling a house. Fair enough if you are loaded or just too busy to speak with prospective buyers/sellers . I have happily survived so far without ever feeling the need to give money to Estate agents/Insurance brokers/wedding planners/fortune tellers or any other group of so called experts.

Because not everyone knows what a property is worth silly and an experienced property buyer would chew up a novice seller. Also an EA would have the time and expertise to deal with the sale, something the owner may not have. Lastly silly, if the owner sells for X and the house next door sells for X + excess of cost of the EA, then the seller who sold it themselves will have lost time, energy, money and possibly their mind. How stupid would you feel if the EA got €50k more for the house next door than you got for yours?

realdanbreen

davo10 wrote: »

Because not everyone knows what a property is worth silly and an experienced property buyer would chew up a novice seller. Also an EA would have the time and expertise to deal with the sale, something the owner may not have. Lastly silly, if the owner sells for X and the house next door sells for X + excess of cost of the EA, then the seller who sold it themselves will have lost time, energy, money and possibly their mind. How stupid would you feel if the EA got €50k more for the house next door than you got for yours?

Well if someone hasn't the cop on to know what their property is worth and is weak enough to be 'chewed up' by a buyer, then I can see why they might need to give €thousands to an auctioneer(they are calling themselves estate agents since they got a bad name during the property bubble) for their 'expertise'.

alastair

realdanbreen wrote: »

Well if someone hasn't the cop on to know what their property is worth and is weak enough to be 'chewed up' by a buyer, then I can see why they might need to give €thousands to an auctioneer(they are calling themselves estate agents since they got a bad name during the property bubble) for their 'expertise'.

I agree that most people should have enough info available to them to establish an asking price.
But the thousands it costs to sell through an agent are worth it to many/most for three main reasons:
1. It's time consuming to sell a place. That time is money to most people.
2. It allows a buffer between the seller and the prospective buyer, avoiding a myriad of awkward, time-consuming questions and the risk of tire-kickers sapping your will to live.
3. They're well versed in teasing the most out of bidders, so a decent one will probably return those estate agents fees & more, saving you money.

But not everyone will require the above. People make up their own minds on whether the additional hassles of selling themselves are worth it.

P. Breathnach

realdanbreen wrote: »

Well if someone hasn't the cop on to know what their property is worth and is weak enough to be 'chewed up' by a buyer, then I can see why they might need to give €thousands to an auctioneer(they are calling themselves estate agents since they got a bad name during the property bubble) for their 'expertise'.

So in your worldview anybody who engages an EA to handle the work of selling a property is some class of idiot.

I sold property through an EA a couple of years ago, so that probably means that you would place no value on my opinions. But other readers might.

Once I appointed the EA, I had a contractual relationship with him, and I was free from the hassle of advertising, showing, and negotiating. If an interested party had contacted me directly, I would simply have sent him or her to the EA (I knew from feedback I was getting that the EA was making a decent effort). There would be no gain for me in dealing directly with potential buyers, and a risk of loss through messing up the selling effort.

davo10

realdanbreen wrote: »

Well if someone hasn't the cop on to know what their property is worth and is weak enough to be 'chewed up' by a buyer, then I can see why they might need to give €thousands to an auctioneer(they are calling themselves estate agents since they got a bad name during the property bubble) for their 'expertise'.

You are a prize winner. A property is worth what the buyer is willing to pay for it, the EA is able to guide th seller based on history of sales and current supply/demand. Weak enough? It's not about strength, it's about understanding the process, the market and the buyer using experience to influence the seller. Also, if you have the time each day to show buyers around, great, you have an understanding boss or a great business. EAs are able to extract info from a buyer before/during a viewing or when a bid is being made which can mark them as serious buyers or time wasters, can you do that?

realdanbreen

P. Breathnach wrote: »

So in your worldview anybody who engages an EA to handle the work of selling a property is some class of idiot.

I sold property through an EA a couple of years ago, so that probably means that you would place no value on my opinions. But other readers might.

.

Well done you! Is that what you want to hear?
If you read my post again you will see that I have no problem with people using Auctioneers. However if you are like most people and have a fair degree of cop on and not so busy that you can't make the time to talk to a buyer,bearing in mind that you would spend the same amount of time talking(or listening more lokely) to an Auctioneer, then why would you need one?

athtrasna

Mod note

Posters are reminded to be civil at all times as per the charter

Galtee65

Ok thanks again to all who replied!

Just to clarify: my 290k includes my deposit! I realize that getting the extra 12 k is unrealistic and I've no real interest in over stretching myself!

A quick update:the EA advised me he has a cash offer of 300k. I believe he's bluffing! The property recently came up in my home again with an open viewing!

Surely if the asking is €310k and he has an offer of 300k cash he would accept?

It reads to me as if he was insulted by my initial offer and decided to exclude me from the process.

I rang him with an offer of 290k and he said that there was no point as he had a cash offer of 300.

If he's bluffing I fully intend to follow this up! I understand I've to wait to get info on offers later on but I will follow this up!

He seems like a genuine and nice chap but a bit of research on this forum would lead me to believe my opinion is a bit naive!

Anyhow il wait another while and submit my offer in writing!

m'lady

From my experience a cash offer isn't as important as them getting above the asking price, so I wouldn't be too sure he's bluffing. How do you intend on finding out if he's bluffing or not?

Galtee65

The asking price was and is a bit optimistic anyhow? EA's are required to keep a record of bids lodged(I think), and are viewable at a later stage!

If I'm incorrect in this then so be it, it will be sold by then. So if I'm incorrect plse ignore and continue in the present, thanks!

m'lady

I'm unsure if your correct or not to be honest, I've never heard of it but maybe someone else here will advise you if that- I'd be interested to know myself. Though I think it would make more sense to be able to see the offers 'live' so to speak.

Make no doubt about it, EA are great at bluffing. I think you need to decide how much the house is worth to you and don't pay anymore than that!

Galtee65

I agree that "live" bids are the way forward! Live bids would represent where where supply meets demand, instead we have gangsters in the middle trying to profit!

I know what the house is worth to me! It's worth my max budget and it's worth my max offer! That's what I want to pay and if I could deal with the seller directly then I think we'd have a deal!

I think this EA has just rattled me a bit with his arrogance! I mean what does he actually do? For me he represents the "white collar" gangster and is one of the reasons I pay USC!

Anyhow, rant over!

Jet Black

Galtee65 wrote: »

A quick update:the EA advised me he has a cash offer of 300k. I believe he's bluffing! The property recently came up in my home again with an open viewing!

Surely if the asking is €310k and he has an offer of 300k cash he would accept?

They probably want asking/bidding war and are trying to push the cash buyer up by having more open viewings.

I went to view a house and put in an offer of asking. Next day EA said someone had put another 1k on top. I wasn't bothered and left it there. That was 6 weeks ago and the house has two open viewings per week since. I was glad then I wasn't the highest bidder with the EA pissing about like that. One or two is OK but 12 is a bit much especially when its gone over the asking price.

davo10

Galtee65 wrote: »

I agree that "live" bids are the way forward! Live bids would represent where where supply meets demand, instead we have gangsters in the middle trying to profit!

I know what the house is worth to me! It's worth my max budget and it's worth my max offer! That's what I want to pay and if I could deal with the seller directly then I think we'd have a deal!

I think this EA has just rattled me a bit with his arrogance! I mean what does he actually do? For me he represents the "white collar" gangster and is one of the reasons I pay USC!

Anyhow, rant over!

I really don't get this. I understand that the house is worth a certain amount to you but surely you understand that it might be worth more to someone else?

Also, you seem to think your mortgage backed bid should be accepted before a higher cash offer, it's 10k more and it's cash, there is no doubt which bid a seller would prefer even if you wrapped it up in flowers and delivered it yourself to the seller.

The EA is not there for you, they work for the seller and the seller wants them to achieve the highest possible selling price for the property, why do you think the EA should say anything other in this situation where there is a higher cash offer than yours? It's time to raise your offer or accept that someone else is prepared to pay more than you for this property.

How many sellers post their unhappiness with EAs who use their "tactics" to get more for a property? Remember that one day you may ask an EA to do exactly the same so that you can sell, you may not be so easily offended when you are on the opposite side of the transaction.

April 73

I've been following this thread & admit to scratching my head.
House has an asking price of €310k. OP offers €260k. Not surprisingly refused!
OP feels the house is worth his max budget of €290k & is prepared to spend €290k.
EA has offer of €300k cash. Seller would obviously like to get to the asking price.
What logic would dictate that the OPs offer would be accepted?

CaoimheSquee

Galtee65 wrote: »

The asking price was and is a bit optimistic anyhow? EA's are required to keep a record of bids lodged(I think), and are viewable at a later stage!

If I'm incorrect in this then so be it, it will be sold by then. So if I'm incorrect plse ignore and continue in the present, thanks!

Yes by law all bids must be recorded and passed to the vendor.

If you feel bidding is suspect then you lodge a complaint with the regulator and they will investigate the bidding. Bids do not become open for public viewing.

m'lady

CaoimheSquee wrote: »

Yes by law all bids must be recorded and passed to the vendor.

If you feel bidding is suspect then you lodge a complaint with the regulator and they will investigate the bidding. Bids do not become open for public viewing.

I'd love to hear how long and how thorough this investigation would be. I really believe they should open to public viewing and this would stop the estate agents with their tactics and driving up the prices of houses.

amdublin

I'm still scratching my head about the op's mortgage offer and deposit and bid on house.

Where is the deposit factored in??