Now what's the chance that the vendor or listing agent happened to find this thread on Google lol.

Batman:

 

billgates:

 

My agent who has advised of the $1,050000 pre offer and listing agent are from same franchise. They know each other very well. I am taking a stab in the dark, but the listing agent might also be calling the shots here with our agent in terms of what offer should I put in. The more the house sells for, the more commission they will get to split. I have figured that I have nothing to loose with a pre-auction offer that is unconditional even if it's refused. 

 

homes.co.nz has property valued at max end $995k. My offer is for $1,010,000. The CV is $740k. A premium of $270k. This to me is a very good pre-offer but lets see.

 

 

 

https://homes.co.nz/app/address/hamilton/flagstaff/10-nicola-jean-place/20EQe

 

 

Never trust anything a RE agent says. Especially the ones that make you feel like you can trust them 100%. But that is so that you will believe everything they tell you. For their own benefit, whatever it is they are trying to achieve. 

 

The more you feel like you can trust the agent, whoa jedi mind trick alert!

 

Good advice. They are biased. Someone hear said last year they rank lower than car dealers, or summit like that.

A not very good real estate agent is not very good for a reason, as is the one that is the top seller EVERY YEAR. There is a reason for that. They want to sell, thats it. If you ask when they give you a guide price that is lower than what you want, you will get many reasons. 

When we auctioned, twice, we got what the market decided. And each time, when the top bid fell short (as my reserve was intentionally top end) they took the buyer to the small room, and got every cent they could. THATS WHAT THEY ARE GOOD AT!  So, I avoided all the yak yak they say, and this was my aim. They do the work, market sets the price, they drain the last pint of blood. 

I speak from experience. I have not had a single agent that felt very trustworthy who had not turned out the exact opposite with hidden agendas and hidden everything. 

Actually it goes with every salesperson whether it's harvey norman or noel leeming. They must have all been trained at the same school.

sonyxperiageek:

eracode: I think you’re misleading yourself here by referring to ‘our agent’. You might be dealing with him (even from before you saw this particular house) but he’s not your agent - he’s ‘an agent’ who works in the team which is selling this house for the vendor. There’s no distinction between the agent you’re dealing with and any other agent in that franchise. The agent you’re dealing with will not, and cannot, be looking after your best interests because they’re all working for the vendor. The agent you’re dealing with should not be mistaken for an ally.

I think he's said before that he's engaged this agent to help them look for properties and coincidentally he also works for the same franchise that the vendor's selling agent is in.

There is no contract that we have with the agent helping us find the properties. He has helped us with viewing few properties in private at our choice of time and pace and provided recent sales data of properties in auctions not only from his real estate franchise but competitors as well which has come in handy. Of course I did not follow his recommendation of writing an offer for $1,050,000 for the said house. I get that he will make his money by splitting commission with listing agent so be it. He has been helpful regardless of him wanting us to not do a pre-offer but this is why I discussed whether I should or should not here in the forum and make my own decision from that.

billgates:

 

There is no contract that we have with the agent helping us find the properties. He has helped us with viewing few properties in private at our choice of time and pace and provided recent sales data of properties in auctions not only from his real estate franchise but competitors as well which has come in handy. Of course I did not follow his recommendation of writing an offer for $1,050,000 for the said house. I get that he will make his money by splitting commission with listing agent so be it. He has been helpful regardless of him wanting us to not do a pre-offer but this is why I discussed whether I should or should not here in the forum and make my own decision from that.

 

I see that. Me, I'd be happy to grab an agent to show me house after house. They have access. Convenient. The funny thing is when you are the seller, they tone down the $ figures. Market is a bit quiet, etc. They are wanting the sell price expectations reduced. I hold the cards, its me thats says, ok, sold, so thats what they work on. If I am buying, "its a great street, its this, its that" to increase my buy price expectation, again, to get a sale. Its good to get a number of sheets of recent sales in the area from them. Add to that other websites. Its a pity auctions are so popular as its hard to find many homes with an "offers over $x", but you can do due diligence and get the $ ranges. From what Ive learnt I dont place a big value on what $ they talk. "You may need to go a bit higher" and " you are a bit high, but we will do our best" gets sales.

I dont feel that paying more is the big issue for them. The extra $30k or 50k isn't a big deal as the bit at the top is lower commission %. Its to get the sale, and you can bank on that the seller has been toned down a bit too, thats gets more potential buyers in play. In conclusion, they arent working for the buyer or the seller, its about the sale. A sold house at $645k is better than one still on the market at 7 

mattwnz: I wonder if the listing agent is less keen on your offer being accepted, if they know they will have to split the commission with the agent helping you? Whereas with another buyer, they could get all the commission. Just thinking out loud.

That's very possible. Open Home, good interest. Many are keen. An agent will clearly be keener on a private person looking than one with an agent. If the market is a bit quiet, anyone will do, its a sale. Again, its only about the sale, not the buyer and sellers best interests. When the boom was on, it all doesnt matter, as they will sell, over and over and over. Sharing commission is probably less an issue as its frenzy time

I may have misunderstood what is happening here, but I think you need some independent advice on negotiating this.

I think you need to be mindful that these real estate agents will not be working to get the best deal for you. They will be working to get the best deal for the Vendor and themselves. The more information about how much money you have and how much you are prepared to pay, the more they will know how far to push you and what sales method they need to extract that most money.

When I have brought and sold in the past, the real estate agents have all been about knowing how much money potential buyers are bringing to the table. They keep track of how much you have bid in the past. I found our lawyer helpful in letting us know the tricks they will play.

Shanemc:

I may have misunderstood what is happening here, but I think you need some independent advice on negotiating this.

I think you need to be mindful that these real estate agents will not be working to get the best deal for you. They will be working to get the best deal for the Vendor and themselves.

 

billgates: Received message from my agent, that Listing agent went to present the offer just few minutes ago and that the management of real estate franchise was also notified that an offer has been presented. They rejected the offer but not because they said they want more money. According to my agent they said it’s only been the first week of campaign and it’s not enough to pull the auction forward.

Seems odd that my agent cannot present the offer. Whats stopping the listing agent doing his absolute best to tell vendor to sway against the offer presented so they bring their own buyer and not split commission. My agent had advised to not put another pre auction offer (not that I am going to as price offered is very good) and just wait for auction day which is still 16 days away. Our offer is valid until tomorrow till 6pm so they might sleep on it and change their mind tomorrow.

Contemplating contacting the owner of house and confirm what other dreams were promised by listing agent when they were presenting the offer.

They want more money.

Sold by auction last year.  We had a similar situation in which there were 3 pre-auction offers.  The realestate agent presented all of them to us, and then gave his opinion based on numbers going through etc. His opinion was to wait, one of the offers was in an area I would have been happy with, the other two were rubbish.  We were tempted to take it, as you have that sellers anxiety, however we stayed the course and ended up getting 45k over that offer.  I am not surprised the owner might wish to see what else comes along, its been 1 week!

I get the feeling your annoyed that the agent is trying to get the most for the vendor, which is their legal obligation.  You have to play the game like everyone else is.  Your attempts to knock out the competition is fair game, but the rejection of that offer is equally fair.