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

Forums › Home Workshop DIY › Offer on a house set to be auctioned. Agent compliance question.

billgates

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#232259 7-Apr-2018 08:27

Hello folks,

I put through an offer on a house that is to be auctioned in 3 weeks time. The agent came back to me after few hours and said that he cannot put this offer in front of the vendor due to being not what he thinks it should be. The offer made was on the max end of what was shown on homes.co.nz which is a lot lot higher than GV anyway. I know we can debate homes.co.nz valuation and I agree that house can fetch little more than what’s advertised there.

I have 2 questions.

1. Does the agent by law have to present my offer to the vendor in which case he said he would not.
2. If the above is true, does it means that the auction date needs to be put forward 2 days from that?

I suspect because it’s a pricey house and my finance is in place, the agent wants other potential buyers to get their finances sorted but which is why I made the offer to speed up the auction date to weed out some of the competition. Please advice.

Do whatever you want to do man.

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#1989889 7-Apr-2018 09:00

talk to your lawyer - they will know what is right and what not, and how to proceed if not right.

tdgeek

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#1989895 7-Apr-2018 09:10

I doubt you can speed up the auction date. When we auctioned our two houses in recent times, a term was auction date is xxx unless sold prior. That implies if someone puts an offer in they can secure the home, and auction gets cancelled. You feel the agent wont put your offer in? If so thats more than ridiculous

Goosey

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#1989896 7-Apr-2018 09:11

They have to present your offer.

May I suggest you simply let them know their obligations as a Licenced REAA and that you are prepared to take matters further if they do not present your offer.

http://www.nzherald.co.nz/property/news/article.cfm?c_id=8&objectid=3350820

Handle9

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#1989901 7-Apr-2018 09:42

They have to present the offer. The vendor doesn’t have to bring the auction date forward unless they want to. It’s the vendors choice whether to bring the auction forward with your offer as first bid or to wait until auction day.

billgates

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#1989902 7-Apr-2018 09:48

Thanks everyone.

Do whatever you want to do man.

JayADee

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#1989921 7-Apr-2018 10:29

Good luck. 🙂

Batman

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#1989926 7-Apr-2018 10:44

Goosey:
They have to present your offer.

May I suggest you simply let them know their obligations as a Licenced REAA and that you are prepared to take matters further if they do not present your offer.

http://www.nzherald.co.nz/property/news/article.cfm?c_id=8&objectid=3350820

Unless they say no prior offers?

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billgates

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#1989940 7-Apr-2018 10:56

The no offer presented to vendor has now happened multiple times to us via different agent franchises in last 2 weeks. The first said no and we thought it may be legal and did not pursue it. Then we liked another house and went to auction. The entire auction room had just my family sitting occupying 3 seats with 57 seats empty and 7 real estate agents standing around the auction hall of this said franchise. We were the only bidders for the house which we raised multiple times bidding against auctioneers vendor bids.

In the end, vendor bid won and we offered a fixed price to agent in a separate room who said that they will not present this offer to the vendor. I made a point that the interest in the property shows in the auction hall attendance and we being the only bidders and left it at that. We have found a third house now to put an offer in for which is more than homes.co.nz max valuation. 3rd time lucky maybe?

Do whatever you want to do man.

Batman

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#1989953 7-Apr-2018 11:07

Maybe the vendors have stated they're not selling below what they wanted?

Goosey

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#1989956 7-Apr-2018 11:24

Still, the fact is the agent needs to present the offer. Vendor doesn’t need to accept it.
I guess said agent and franchises ain’t doing themselves any favours long term when the buyer oneday becomes the vendor.

Too many agents, too many brands clipping the ticket trying to make more people become agents.
It’s just not right.

shk292

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#1990975 7-Apr-2018 12:18

What's to stop you writing your offer down and posting it in the vendor's mailbox?

Dial111

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#1990980 7-Apr-2018 12:33

When we bought our first house we tried auction once... never again. I'm pretty sure they have to present the offer and if accepted that's where reserve is set and auction comes forward, maybe wrong.

Being on both sides buyer and vendor, I can't say many nice things about agents.

Since selling and back on the market again we presented an offer (deadline private treaty) to an agent who told us he will present the offer but it was way under what he thought the house would go for, we offered 10k over what the vendor was asking for. He tried to push us to our max budget which was another 50k, so 60k over asking with his logic being we should put our best offer forward... that was my best offer for what I thought the house was worth.

Wife could see I was getting angry so she called it at what we offered and no more. He tried again so I got up and ripped the S&P up and told him we're not that desperate so shove it, and walked out.

House sold for 30k under asking the next day.

MichaelNZ

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#1990994 7-Apr-2018 12:40

Dial111:
House sold for 30k under asking the next day.

To one of the agent's friends, no doubt.

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Dingbatt

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#1991038 7-Apr-2018 13:43

I guess the only other thing to consider is that, because the agent works for the vendor (regardless of how much they appear to be your friend), they may have been instructed to not present bids under a certain value. But if that was the case I would expect the agent to tell you that. Even then I'm not sure that complies with the requirement to present all offers.

The best outcome I have seen (admittedly not in a frenzied market) was when friends employed their own agent to negotiate on their behalf. His payment was based on how much he could save them. In the end they reckon he saved them $80-100k for an outlay of about $5k. Plus much less stress.

“We’ve arranged a society based on science and technology, in which nobody understands anything about science technology. Carl Sagan 1996

mattwnz

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#1991039 7-Apr-2018 13:45

IMO Auctions are a lazy way to sell a house, in a high demand environment, but agents love them because they are easy. Its like shooting fish in a goldfish bowl. It also is not the ideal way to sell for the seller, because the person who wins the auction potentially may have been prepared to pay more. Auctions though are very good for the buyer, because you know what other people are bidding and are prepared to pay. Tender is more likely to get the seller a better price, because the winner will likely have submitted their top big.

IMO I would wait till the auction, however if it does say, unless sold prior' and you really want it, then you probably have now choice but to put in an off now. I am surprised they have put 'unless sold prior' because that isn't really fair for those people who are waiting for the auction, and may have spent a lot of due diligence. You occasionally get that with tenders too, but that just means people can submit their tender earlier.

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