Offer on a house set to be auctioned. Agent compliance question.

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#1991470 8-Apr-2018 16:50

It may come down to the agents needing to be fair to other potential buyers, so they may have their hands tied. I would feel annoyed as a potential buyer, if I was waiting for the auction, only for it to be sold before I even had the chance to bid.

Handle9

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#1991493 8-Apr-2018 16:55

billgates:
Handle9:

It isn't that simple, it really depends on what the auction process describes. For example Barfoot and Thompson have a published pre-auction offer process which states that if a pre-auction offer is accepted the auction must be brought forward. It will depend on the terms and conditions of the agency and their auction process. Like I said earlier you need to understand the process and if you don't know get advice.

The agent will need to prepare a pre offer contract. The clause I mentioned above is what will be added by my agent. That’s the bit that vendor agrees and signs. I couldn’t care about what the auction process describes. My clause clearly states if the vendor agrees, any auction or multi deadline offer goes out the window. If they sign this, they agreed to the clause. This can be added to pre offer agreements. People just don’t know about it.

You may not care but depending on the published conditions of sale the vendor may not be able to accept it. If the property is offered under terms and conditions which state a pre-auction offer will cause the auction to be brought forward then they can't accept your offer. If they did then they would be open to being sued by other potential purchasers. Y

billgates

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#1991496 8-Apr-2018 17:05

I see what you mean @Handle9 now. I have checked the particulars and conditions and it’s not stated where acceptable pre offer will bring auction forward hence I can add my clause. I will be taking to the lawyer tomorrow who will advise and prepare what I would like to get added. Below is the important portion of supplied conditions agreement supplied by listing agent for the property that does not mention the condition you have stated.

Do whatever you want to do man.

sonyxperiageek

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#1991601 8-Apr-2018 18:47

Did I read that house listing right? The rates are $3,100! Wow!

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#1991636 8-Apr-2018 19:19

sonyxperiageek:
Did I read that house listing right? The rates are $3,100! Wow!

That’s cheap. My parents are 6k. 2.5k seems about average

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#1991648 8-Apr-2018 19:33

billgates:

The clause I will be adding with the offer will be..

“By signing and accepting this offer, the Vendors agree to withdraw the property immediately from the market and sell it to (Purchasers name) without calling an Auction or a multi-offer deadline.”

You don't need this clause. If they sign the house is yours.

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#1991649 8-Apr-2018 19:34

It's best to put the date and time of expiry of the contract, not 48 hrs. 48 hrs from when?

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#1991650 8-Apr-2018 19:36

mattwnz:

It may come down to the agents needing to be fair to other potential buyers, so they may have their hands tied. I would feel annoyed as a potential buyer, if I was waiting for the auction, only for it to be sold before I even had the chance to bid.

Umm ... the terms of sale of the property states

Auction - 26th April 2018 - Unless Sold Prior

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#1991652 8-Apr-2018 19:44

sonyxperiageek:
Did I read that house listing right? The rates are $3,100! Wow!

It’s $3100 for Hamilton council rates and around $450 on top for Waikato regional rates so close to $3600. Saying that it also includes water (unlimited consumption) where as in Auckland, it’s billed separately to rates. Our current house is $2600 + Waikato regional so not a huge jump.

Do whatever you want to do man.

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#1991668 8-Apr-2018 20:09

Hope you have done the homework on this 'bespoke'...

i.e. code compliance all in place, titles checked. A classic clause is to say "Subject to LIM and TITLE".

Also, you north island folk aint into this much, but us South Islanders are right into building inspections (only a few hundred bucks) and these identify leak and heat issues (or potentials), any potentially 'wrong or wil be a problem' etc etc etc. If more north islanders did this, then I'd say the average prices will drop soon enough.

:-)

mattwnz

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#1991669 8-Apr-2018 20:14

Batman:
mattwnz:

It may come down to the agents needing to be fair to other potential buyers, so they may have their hands tied. I would feel annoyed as a potential buyer, if I was waiting for the auction, only for it to be sold before I even had the chance to bid.

Umm ... the terms of sale of the property states

Auction - 26th April 2018 - Unless Sold Prior

But there still needs to be an auction doesn’t there, didn’t someone else say that that is what that means, and they just bring the auction forward.? Eg their maybe an earlier auction where it sells prior to the 26th April.

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mattwnz

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#1991671 8-Apr-2018 20:19

Goosey:
Hope you have done the homework on this 'bespoke'...

i.e. code compliance all in place, titles checked. A classic clause is to say "Subject to LIM and TITLE".

Also, you north island folk aint into this much, but us South Islanders are right into building inspections (only a few hundred bucks) and these identify leak and heat issues (or potentials), any potentially 'wrong or wil be a problem' etc etc etc. If more north islanders did this, then I'd say the average prices will drop soon enough.

:-)

Some inspections can miss a lot. The problem is a lot are just visual, and exclude things not visible or easily accessible. Some I have seen go through the house checking for door stops, and can take around an hour. To do a good inspection, it really needs a good half day to go over everyting

Aredwood

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#1991683 8-Apr-2018 21:27

Batman:
billgates:

The clause I will be adding with the offer will be..

“By signing and accepting this offer, the Vendors agree to withdraw the property immediately from the market and sell it to (Purchasers name) without calling an Auction or a multi-offer deadline.”

You don't need this clause. If they sign the house is yours.

As above. If they want to sit on the offer until auction day, or bring the auction forward. They have not accepted your offer. And until they accept it, you are free to withdraw it.

I reckon, place your offer - you don't need your custom clause. If they bring the auction date forwards. Contact the agent and tell him that you will be withdrawing your offer on (date and time 24 hours before auction is scheduled). This puts pressure on the vendor to either accept your offer, or risk the bidding finishing at a lower price to your offer.

And if they don't accept your offer, you will then know what price the bidding reached. And you will then be able to negotiate hard with the agent. If the bidding stops at less than what your original offer was, you will have the satisfaction of having the agent begging you to re submit your offer. And you can re submit at a lower price if you want.

In short, your offer can only be accepted or not accepted. If it is accepted, the vendor is legally required to sell to you at the agreed price. If it is not accepted, you are free to withdraw it whenever you want.

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#1991684 8-Apr-2018 21:42

mattwnz:
Batman:

mattwnz:

It may come down to the agents needing to be fair to other potential buyers, so they may have their hands tied. I would feel annoyed as a potential buyer, if I was waiting for the auction, only for it to be sold before I even had the chance to bid.

Umm ... the terms of sale of the property states

Auction - 26th April 2018 - Unless Sold Prior

But there still needs to be an auction doesn’t there, didn’t someone else say that that is what that means, and they just bring the auction forward.? Eg their maybe an earlier auction where it sells prior to the 26th April.

Depends on the vendor. Sometimes they are just happy to accept the offer and move on.

THe whole idea of marketing an auction is to sell the house, not to have an auction for the sake of having an auction.

Usually, what brings the auction forwards is they believe they have enough impatient bidders. If there is one bidder what's the point of bringing the auction forwards?

Aredwood

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#1991747 9-Apr-2018 00:07

Forgot to mention. The agent is still allowed to keep advertising the property after an offer is accepted. But this is normally only done if your offer is a conditional offer. And any new offers can only be backup offers.

Although if the vendor has any sense, they will insist on a better offer clause being added.

Fun times if the vendor accepts your offer, and then a backup offer arrives for a higher price than your offer. As not much a vendor can do to get out of an offer after accepting it.

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