Should I Report This REA for Underquoting Property Price to Attract Interest?

Homr on 16/03/2024 - 15:07
Last edited 16/03/2024 - 19:05

Hi Bargainers,

Hope you're all having a great weekend.

Long story short

  1. We offered $XXX (which was also their asking price) for a property and the price was accepted via email with confirmation sales advice. We transferred 0.25% holding deposit noting 5 day cooling period.
  2. REA called us 3hrs later after sending email saying, someone offered $XXX+$10k, however we may still get the property if you match that price but with better conditions like no cooling period (WTF?) or a higher offer.
  3. We said no, walked away. The ad has now changed to $XXX+$30k

I feel like we've been deceived as we spent $550 for a contract review and wasted 1.5days for various things like strata report, financials etc etc when in fact we were never going to get the property for the original asking price. It was there to attract interest.

Now according to the ACCC - https://www.accc.gov.au/consumers/specific-products-and-acti…

When advertising a property’s price, real estate agents must:

  • advertise a selling price based on either a reasonable market appraisal or what the seller will accept
  • not advertise well below the selling price to attract interest
  • not advertise below a price the seller has already rejected (unless the seller is now willing to accept a lower price).

Real estate agents must not mislead consumers to encourage higher offers.

Should I report this REA? I have all supporting documentation ready on hand (text messages, screenshots with original pricing, sales advice)

Thanks all.

EDIT: Just to clarify, $XXX was also the vendor's asking price!

Poll Options

  • 585
    Yes
  • 9
    No
  • 37
    LOL, this is how Sydney property market works n00b. Get good
Home & Garden

Comments

      • Extreme on 17/03/2024 - 09:50
        +3

        Accepted in writing by who exactly?

        The agent? Well they don’t own the house and as such, can’t sign a contract on behalf of the vendor.

        The vendor is the only one that can accept the offer.

      • TheMills on 17/03/2024 - 11:17

        1st-Amendment - Agree! 💯 Exactly my point. The agent is using the technicality to fool the buyer.

  • ihbh on 16/03/2024 - 17:09
    +6

    We transferred 0.25% holding deposit noting 5 day cooling period.

    FYI. This means nothing until you come into the office and "exchange contracts", that is, sign the seller's countersigned contract.

    • Homr on 16/03/2024 - 17:10

      I know that means nothing, but that's not the reason I'm reporting them for.

      • Drakesy on 18/03/2024 - 13:03

        Your reason is still invalid though?
        The market dictates how much a property is, unfortunately the market is currently quite hot.

    • 1st-Amendment on 16/03/2024 - 17:20
      +7

      This means nothing

      I'm not so sure about that. I'm not a lawyer, and sure it is not a full sale of contract, but there is at least a written agreement in place which is more than nothing. If I remember my high school legal studies coursework, and a few episodes of Judge Judy, even a verbal agreement is legally binding to some extent.

      So sure the OP might not get anything out of it, but a black mark against the agent will help the next guy who also complains.

      If it were me I'd consider sending them another offer, this time written on a brick. And I'd send to them as quickly as I could…

      • Extreme on 17/03/2024 - 09:53
        +1

        Written agreement between who exactly tho?

        The buyer and the agent? Well it accounts for nothing.

        The vendor is the one that needs to agree to the sale in writing. An agent can’t do this on their behalf.

        • Ridiculous Panda on 17/03/2024 - 12:46
          +2

          “ An agent can’t do this on their behalf.”
          But they did which indicates the vendor also agreed. If the vendor was not asked, then that’s why they need to be reported.

      • rumblytangara on 18/03/2024 - 15:15
        -1

        Verbal contracts are not valid in Oz for property. A written contract has to be countersigned by the seller.

        10 second Google.

  • ihbh on 16/03/2024 - 17:15
    +14

    Pro tip: Next time at step 1. offer to to exchange contracts and pay whatever holding deposit. If they say no, then ask them why and then you can decide to move onto the next property, etc. If they exchange contracts, only the buyer can rescind the contract during the cooling off period. The cooling-off period is one-sided, so during a hot market, the seller will try to make it more even with gazumping, asking buyer to waive right, etc.

    If you follow this tip, steps 2. and 3. won't be necessary and you won't need to get your knickers in a knot and threaten to report anyone, that is, waste time and emotional and financial resources.

    I feel like we've been deceived as we spent $550 for a contract review and wasted 1.5days for various things like strata report, financials etc etc when in fact we were never going to get the property for the original asking price. It was there to attract interest.

    Why the heck did you do this without exchanging contracts? The person I'd report is the f*king convergence/lawyer for not educating you and making extra money from you for multiple contract work.

    • Skinnerr on 17/03/2024 - 10:39
      +2

      Just shows you how many wide and varying the snouts in the RE trough are.

  • 87percent on 16/03/2024 - 17:16
    +2

    Did you get the .25% returned to you?

    • Homr on 16/03/2024 - 17:17

      not yet

  • dtc on 16/03/2024 - 17:17
    +5

    The rule in NSW is that is has to be advertised no lower than 10% of the expected price. Perfectly legal to advertise a property at 700+ with the expectation of $770k. And that can be adjusted during the campaign. Pretty sure they +$30k is within the 10% range

    Anyway I don’t see where there is any misleading on price. You offered a price, it was accepted but then rejected and it’s now on market for a slightly higher price. Where is the misleading price? You were in negotiations and you didn’t offer the higher price so you didn’t get it. The only ‘misleading’ is that you thought the seller had accepted your offer, but they didn’t as no acceptance until exchange.

    You were perhaps gazumped but no recourse there
    https://www.fairtrading.nsw.gov.au/housing-and-property/buyi…

    • Homr on 16/03/2024 - 17:19
      +2

      I was not gazuumped since the property is still on the market. If the new offer is genuine, why is it still on the market? I also believe the REA made up that new offer and just want us to pay more

      I know what gazuumping is and I also know its legal

      • dtc on 16/03/2024 - 17:25
        +3

        Well, the seller changed his/her mind and decided to go for a higher price given the demand. If you think the agent was lying and there was no other offer, then the property will sit there.

        The seller is entitled to reject both the offers made. Even after informal acceptance. If the seller made a bad choice then they don’t get a quick sale.

        If there hasn’t been informal acceptance and you were merely told that the seller had a higher offer, would you think there was any misleading conduct? You would just think there was a higher offer and then that offer wasn’t good enough either.

        You can report it to whomever you want but it’s not misleading conduct under the law

        How come your contract was 670 pages? The actual standard contract is less than 15 pages

        • Homr on 16/03/2024 - 17:33
          -4

          How come your contract was 670 pages? The actual standard contract is less than 15 pages

          This is a property contract, not an employment contract

          • dtc on 16/03/2024 - 17:38
            +4

            @Homr: There is a standard property contract. The terms and conditions are about 15 pages long.

        • jjjaar on 16/03/2024 - 17:34
          -1

          Even after informal acceptance

          This is what I would love a lawyer to weigh in on, because the way I see it is that “informal” is verbal and “formal” is written. Just because it’s an email, doesn’t make it any less written/formal.

          I’m sure it happens all the time where they get away with it, but based on the link I shared below, you’d think you’d want to avoid anything in writing (yes, it’s QLD so perhaps not an actual precedent for OP, but still a similar example).

          • dtc on 16/03/2024 - 17:40
            +4

            @jjjaar: FWIW I am a lawyer. The law on property is very very clear - no acceptance until exchange. Property is treated somewhat different to other contracts because real property has traditionally been seen as ‘more important’ than other assets (think the landed gentry in England, where our laws come from).

            Edit: your link below is for the sale of a business transaction. There was land attached so in NSW and VIC, amongst other states, the conveyancing act would prevent that decision (so, maybe there is a risk in QLD)

      • dachosenone on 17/03/2024 - 01:18
        +3

        Perhaps accept some responsibility, as you're arguing with everyone as to what you perceive is fair. Fair sometimes doesnt exist in business negotiations.

        Unless you exchange then its not a deal, doesn't matter how much your costs are and your email. Thats not how these things work. If you believe its against the law, proceed with a civil case and see how far you get. I can bet nowhere with no exchanged contracts.

        As to the other buyer, maybe he exists, maybe not, either way the REA wont reject your offer, the vendor did. Vendor could of said yes ill take x, then after your offer, got greedy and said i want more. Seen it happen a few times from unmotivated vendors.

        Agent would prefer to close the deal and move on, instead of worrying about a measly 10k, which is nothing in the scheme of a sale/commission.

      • johnfuller on 19/03/2024 - 11:29

        if you think thats bad, my friend went to an auction, didnt win at auction, someone else won it, RE came to him and said "give me 20k more and ill get the house for you but you need to pay me in cash" , he ended up buying the house , but that 20k likely just went into the RE pocket

    • 1st-Amendment on 16/03/2024 - 17:25

      The rule in NSW is that is has to be advertised no lower than 10% of the expected price.

      Even that is a joke sometimes. Last auction I went to was 30% over the guide. I always expect plus 10-20% but 30% was taking the piss.

      And that can be adjusted during the campaign.

      I believe they have to legally up the guide if someone offers something higher, since it is now no longer a realistic guide. A few agents have done this which is what I would expect. They start with a guide, then if they get higher offers coming in they've called to let me know that the guide is being revised. All perfectly ethical as the market can always shift. But to accept an offer then reject it later is not good form.

      • dtc on 16/03/2024 - 17:29
        +1

        I agree, accepting an offer and then pulling out is legal but not good form; and then to not even accept the higher offer is weird. But sellers are strange and we have no idea what is driving this decision. Could be greed, could be needing the money to pay for some other expense, could be they got some bad advice on social media.

        • Homr on 16/03/2024 - 17:31

          and then to not even accept the higher offer is weird

          I believe the higher offer was fake

          • 1st-Amendment on 16/03/2024 - 17:37
            +1

            @Homr:

            I believe the higher offer was fake

            Same. I had this happen to me once years ago. The Agent agreed on a price, we signed a form and paid a 'holding deposit', $1000 from memory (which it turns out was all a charade, much like OP's example). The agent then called some time later to say they had another higher offer and we should bump our offer up by a small amount to secure it. I didn't like the smell of that and refuse to get sucked into that game so walked, and just like OP the place stayed on the market for about a month later. So this mysterious higher offer never completed their sale either, which makes me think it's all part of the scam

            • Homr on 16/03/2024 - 17:38

              @1st-Amendment: Did you contact the REA and asked why the property still on the market??

              Like you i refused to play this game with REA

              • 1st-Amendment on 16/03/2024 - 17:40

                @Homr: Can't remember to be honest, this was a long time ago. I think I did and they gave some bullshit excuse like they always do.

              • 1st-Amendment on 16/03/2024 - 17:41
                +1

                @Homr: This is why I prefer auctions. At least you can see if other buyers actually exist

                • Homr on 16/03/2024 - 17:42
                  +2

                  @1st-Amendment: Not necessary, the bidder could be vendor friend and do dummy bids

                  • 1st-Amendment on 16/03/2024 - 17:58
                    -1

                    @Homr:

                    the bidder could be vendor friend and do dummy bids

                    That's a much higher risk game, because they could end up buying a multi-million dollar house, or the owner could lose a real sale and waste tens of thousands in marketing and auction fees. I've been to enough auctions to know that this is not common.

                    • rambao9 on 19/03/2024 - 09:50

                      @1st-Amendment: They usually ask at the end of the bidding for all the highest bidders to stay for negotiation, ie. Sometimes bidders arent ready to buy or need longer settlement and owners dont want to settle on those terms.

                      So no unfortunately auctions arent as great as you think they are.

                      • 1st-Amendment on 19/03/2024 - 14:43

                        @rambao9:

                        They usually ask at the end of the bidding for all the highest bidders to stay for negotiation

                        Only the highest bidder of an unsuccessful auction gets this right. If no deal is done then the Auction is officially ended and it then goes back to regular rules and regular negotiations can resume.

                        Sometimes bidders arent ready to buy or need longer settlement and owners dont want to settle on those terms.

                        All terms are laid out in the contract PRIOR to the auction. This cannot be changed mid-auction.

                        So no unfortunately auctions arent as great as you think they are

                        Based on your comments you don't actually understand basic auction rules, at least for NSW.

                        • rambao9 on 19/03/2024 - 15:51

                          @1st-Amendment:

                          Based on your comments you don't actually understand basic auction rules, at least for NSW.

                          Haha, you can say that, but based on your comments, it sounds like you don't auction often or haven't been to any recently?

                          • 1st-Amendment on 19/03/2024 - 20:22

                            @rambao9:

                            Haha, you can say that

                            I just did.

                            Feel free to tell us how you think a bidder can alter the settlement terms of the contract during an auction. I'd love to hear how you think this is legal.

                            • rambao9 on 19/03/2024 - 21:55

                              @1st-Amendment: lol, snarky.

                              But you completely missed the point, my comment wasn't on 'legality' or 'basic auction rules'. Sorry to break it to you but life doesn't happen like a book.

                              My comment merely reflects the last 10-20 auctions i've been to in the past few years.

                              Unfortunately, just because YOU understand 'basic auction rules' it doesn't mean everyone else does. The agent would be an absolute moron - if someone rocks up at an auction and starts bidding for a property and you don't accept their offers because they don't know the 'basic auction rules'.

                              The assumption is everyone understands, but that's not necessarily true. Hence why, if you've been to any auction recently, you'll see many agents, who communicate to all prospective bidders and if you're amongst the top few bidders, they will either try to get you to stay or communicate with you afterwards.

                              Contract alterations can happen at any point before/after an auction as long as its agreed with with the vendor - this is all that matters.

                              This extends to, just because the hammer is down at an auction, it also does not necessarily mean the buyer is able to buy it (ie. finance is not approved, or they have additional terms to negotiate etc.) hence why there is always a negotiation stage after an auction.

                              • 1st-Amendment on 20/03/2024 - 10:19

                                @rambao9:

                                as long as its agreed with with the vendor

                                In advance. Prior to the auction.

                                During an auction the winning bidder is legally committed to the existing terms in the contract. I've never been to any auction where anyone has asked for contract changes mid-auction, and I've been to hundreds. And if you think about it, it's actually impossible since a contract change would require legal review of the changes from both parties which is never going to happen in the middle of an auction.

                                if you've been to any auction recently, you'll see many agents, who communicate to all prospective bidders and if you're amongst the top few bidders

                                Sure, during the auction, before the fall of the hammer. Once the hammer falls, only the top bidder has the option of negotiating as they are the 'winning bidder'. If those negotiations fail, then the auctions ends, and the agent go back to non-auction conditions, ie contacts all remaining bidders to see if they can milk more money out of them.

                                just because the hammer is down at an auction, it also does not necessarily mean the buyer is able to buy it

                                They are legally obligated to buy it if the vendor has accepted the price. If you win an auction you are legally obligated to sign the contract immediately as it is and pay 10% of the price. If you refuse the vendor can sue you.

                                What would be the point of an auction if you can just decide afterwards that you'd like to change your mind without repercussions? This makes no sense.

                • ashftc on 17/03/2024 - 13:09

                  @1st-Amendment: Don’t you have to pay for B&P and contract renewal for all the auction properties one is interested in as there isn’t a cooling off period? I agree that at least competition is visible.

                  • 1st-Amendment on 19/03/2024 - 14:48

                    @ashftc:

                    Don’t you have to pay for B&P and contract renewal for all the auction properties

                    Yes but that is a small price to pay for piece of mind. My conveyancer charges $80 for a pre-auction contract review, and B&P is usually around $60-80* although I don't usually bother with them unless a place looks sus, as I know enough about construction to know if a building has issues.

                    B&P is now done by the sellers, at least where I live, and you get access to the report for a reduced fee, with a condition that if you buy it you pay the full fee.

    • ribze1 on 17/03/2024 - 20:27
      -1

      It sucks but i think this post is spot on.

  • jjjaar on 16/03/2024 - 17:26
    -1

    I’d be going further and looking into whether that email acceptance of your offer was enough for them to be bound to it. Both in the sense of the price you offered, but also once they’ve accepted your offer in writing, they can’t entertain any others. (Even if that “other offer” was fake to stress you out)

    https://www.awbrisbanelawyers.com.au/your-emails-can-form-a-…

  • Muzeeb on 16/03/2024 - 17:49
    +3

    If $XXX and $XXX+$30K are within 10% of each other then, IMHO, you don't have a leg to stand on and just wasting your time.

    Underquoting and negotiating are two separate entities and should not be confused as being related. The agent is working on behalf of the vendor and attempting to maximise their commission.

    When you go to sell a property in the future you will see the light and the other perspective.

    • Homr on 16/03/2024 - 17:51

      Thanks, good to know.

  • JIMB0 on 16/03/2024 - 17:50
    +1

    Did you carefully analyze recent sales of similar properties to come up with your offer?

    • Homr on 16/03/2024 - 17:53

      Yes, my offer price was also their asking price

      I was willing to pay what they asked for

      • JIMB0 on 16/03/2024 - 17:59
        +2

        The true value is always higher than the asking price. The asking price is just to generate a lot of interest from suckers to start the bidding at auction. You need to offer what the place is actually worth. The only way you'll get it cheaper is to offer better terms to the vendor (ie. no subject to finance clause, short/long settlement etc).

        You can get all upset about the whole underquoting thing, but that ain't going to get you a house.

        • Homr on 16/03/2024 - 18:00
          +3

          The true value is always higher than the asking price.

          Right, so you're saying the asking price is always misleading? And that is ok?

          The asking price is just to generate a lot of interest from suckers to start the bidding at auction. You need to offer what the place is actually worth

          This wasn't an auction

          • JIMB0 on 16/03/2024 - 18:11
            +3

            @Homr: All I'm saying is that's how it is. You can either accept it, offer over asking price, secure a house and live happily ever after. Or you can waste your time making numerous offers at asking price, get rejected and report the agent who will get a slap on the wrist at most.

  • Pcosmic on 16/03/2024 - 19:21
    -4

    You sound like an amateur in this game

    • Homr on 16/03/2024 - 19:27

      Thanks, please pick option 3 in the poll option

    • Skinnerr on 17/03/2024 - 11:00

      Everyone starts somewhere. Even you.

  • Drakesy on 16/03/2024 - 20:17
    -3

    price was accepted via email with confirmation sales advice. We transferred 0.25% holding deposit noting 5 day cooling period.

    If you have an email and a copy of the signed & accepted contract then they owe you the house, it's binding once it's signed. Are you sure they didn't just accept the offer contract and then had discussions with other buyers? this is pretty standard and actually i'm impressed they came back to you asking for a higher offer in that case.

    Had a friend where they tried to back out of the sale after a guy came in and offered 10% more. Solicitor went to town on the REA/owner.
    But the key is you need a copy of the signed and accepted contract (by both parties) with the price on it.

    The way you've written it, it isn't an issue of underquoting, it's an issue of backing out of their agreed sale price.

  • CyberMurning on 16/03/2024 - 20:48
    +2

    The key probably accept word means okay we acknowledge your offer as serious candidate.
    that's it, not agreed, not contract not binding.
    So they can accept multiple offers and then decide on one. And exchange contract.

    But yeah, imagine OP went lost the bid once.. and maybe 2, 3 times.. then next, FOMO will kick in and he will pay whatever agent say

    • Homr on 16/03/2024 - 21:19
      -1

      But yeah, imagine OP went lost the bid once.. and maybe 2, 3 times.. then next, FOMO will kick in and he will pay whatever agent say

      my thoughts too. What happens if I match the new offer and delivered a signed contract to them? They can easily say "oh no sorry, the someone else has just offered XXX + $20k"

      • CyberMurning on 17/03/2024 - 01:38

        Yep you (and me) will never know if xxx+20k offer is made by a person or by some imaginary fairy created by agent.
        Yeah, agents are the scumbag of the worst.

        So…. Keep renting forever? Or work two jobs so we can afford xxx+100k? Tough choice.

    • Drakesy on 18/03/2024 - 12:07

      This,

      And the OP somehow seems to think they've secured the house?

      • CyberMurning on 18/03/2024 - 13:00
        +1

        well probably first time buyer.. too excited like wohoooo we scored a bargain just like in ozb

        • Drakesy on 18/03/2024 - 13:01

          Yeah, this most likely.

  • TheMindsetTraveller on 16/03/2024 - 21:11
    +4

    Unless contracts are exchanged, everything else is fluff including the 0.25% deposit.

    REA must change/revise the ad IF they get genuine offers, and in this case - they did hence they have revised to x + $30k.

    • Homr on 16/03/2024 - 21:17

      Unless contracts are exchanged, everything else is fluff including the 0.25% deposit.

      Agreed and I'm not arguing about that.

      REA must change/revise the ad IF they get genuine offers, and in this case - they did hence they have revised to x + $30k.

      Right, so you're saying they never intend to sell for X, they just used it to attract the interest?

      • CyberMurning on 17/03/2024 - 13:38

        never intend to sell for X,

        This can't never be proven.
        They can say oh I intended for X but out of the blue someone offered x+30k because they have been missing out many times and they really like the property. (That high roller market destroyer person could be you in the future.
        Imagine you missed out many time, stress out, and suddenly your dream house is up for sale. Wife begging please get this I'm tired or I will file divorce. Soooo… You call the agent.. hey I offers 50k more. And someone posted on ozb someone bid more agent returned my deposit

        • Homr on 17/03/2024 - 13:54

          Wife begging please get this I'm tired or I will file divorce. Soooo… You call the agent.. hey I offers 50k more.

          As an ozbargainer, this will never happen! Not here anyway

          Pretty sure fellow ozbargainers will say dump the wife and get a new one

      • TheMindsetTraveller on 18/03/2024 - 05:59
        +1

        Let us say 2 people are interested in a property, and the price is $X.

        You offered $X, which was accepted, and you placed a 0.25% deposit (which in the scheme of things, is 'fluff').

        At this point in time - nothing is set in stone remember - REA approaches Person 2, who is keen as well and now says we have a firm offer at $X (yours) [REA has not lied at any point ok?], can you beat it? Person 2 says "sure, add $10k to it"

        REA goes back to you and says what can you do since Person 2 is $X + $10k. At this point, you chicken out as you do not know the process and blame it on misleading? whatever conduct by the REA.

        The property remains listed, but this time, it is $X + $30k, and they can do this because its not the agent who is dodgy but the vendor. The agent has done nothing wrong and is probably not in their interest to waste time creating extra work - I mean, whats the commission on $30K anyway? peanuts.

        If I were an REA, I would want to sell a house for $1m in 1 week, then $1.03m in 6 weeks as the extra 5 weeks of work for negligible commission on $30k makes no sense. Let us say their commission is 2%, at $1m this is $20k, at $1.03m this is $20,600 ——- that 5 weeks of extra work for $600 is a waste of time imo.

        It is because of this process, that I only buy and sell houses via auction. I love the entire process and if used correctly, can definitely work in your favour.

        • MITM on 18/03/2024 - 16:03

          Exactly this - there is little incentive for the agent to push for a few more thou. In fact the opposite, it's easier for lazy agents to get the vendor to drop the price at the start. No huge loss in commission.

  • vince088 on 16/03/2024 - 21:15

    Melbourne's Auction Taskforce on a mission to stamp out underquoting | 7 News Australia
    https://www.youtube.com/watch?v=93IdJVsBvq4

  • Dollar General on 16/03/2024 - 21:18
    +2

    People want a free market only when it suits them. This applies to people and businesses

  • May4th on 17/03/2024 - 05:41
    +2

    you can report but nothing will be done about it unless it's blatantly obvious. there's so many things they could use as a reason to weasel out of it.. the underquote legislation is all for show very hard to enforce

  • Sinnerator on 17/03/2024 - 08:49

    Who is REA?

    REIA is paid for by the Real Estate Agencies, so they work for the Real Estate Agencies, what do you expect them to do? "We investigated ourselves and found no wrongdoing"
    (REIA = National Body, there are state bodies also)

    You may want to contact Office Of Fair Trading which regulates real etate agencies in their state

  • Oztx on 17/03/2024 - 10:06
    +2

    You should report it. Hopefully it's investigated and they stop doing this to avoid investigation in the future even if it's technically legal.

    But to be honest, it sounds like you liked the property, losing it because of an extra 10k+ which I assume is less than 5% of total price isn't the best thing to do if you absolutely need a property right now. I admire the principle and hope they stop doing this but if I liked a property I wouldn't have let it go for an extra ~5% in this market.

    • Homr on 17/03/2024 - 10:08
      +1

      I have not let it go, I just don't like what this REA is doing

      I can match the new price, but whats stopping them to raise the price again?

      • jjjaar on 17/03/2024 - 10:39

        Nothing is stopping them by the sounds of things. But you’re calling their bluff and each time they reject an offer, they will have to raise the price. So even if you end up pushing it above your limit (which is out of your control anyway if they’ve already decided a price), you’re at least making it more transparent for others and also collecting more information to help you report the dodgy practice.

      • Camelface on 17/03/2024 - 20:09

        That's why you give an offer with expiry and, demand that you sign the contract the same day they accept the offer.

  • George Washington on 17/03/2024 - 10:58
    +1

    Reporting makes no difference, ive reported on a few

    2022 Sydney - North West popular suburb due to schools town house……. old townhouse listed with 400 square meters agent was counting in shared space as part of property… Agent wanted 1 mill i called him out for BS and said how can it be 1 mill when comparable around the place is 1.9-2.1. Then i said to him well i screen shot the listing recorded the phone conversation which i did then said to him i am sending this all to fair trading.

    Sent to fair trading, it went no where. fair trading didn't even issue a fine nothing to be exact to this day. 6 months on same agent still doing the same under-quoting and dodgy listing practices. Funny enough the dude passed away within the same year. I usually don't make fun of people passing away but he deserve what he got that roach. Hope he rots in hell

    • George Washington on 17/03/2024 - 10:59

      I honestly think agents should stop wasting peoples time, houses sell themselves in this current climate list it properly with the right price. If the vendor wants an unrealistic price just go offers over 1.5 million only.

    • Skinnerr on 17/03/2024 - 11:02

      Reporting makes no difference, ive reported on a few

      I saw on the news they're using undercover operators to catch REA's who break the law, so not just consumer affairs.

      • George Washington on 17/03/2024 - 11:03

        That is in Victoria. They dont have enough man power

        • George Washington on 17/03/2024 - 11:05

          Auction rules should change no price listing no offer prior to auction. Once a property is listed for auction it goes to auction. Vendors set a reserve and bid away people. Once it passes in the highest price becomes the guide. That way it cost the agent/vendor for the failed auction.

          • MITM on 18/03/2024 - 16:08

            @George Washington: A Dutch auction (also called a descending price auction) refers to a type of auction in which an auctioneer starts with a very high price, incrementally lowering the price until someone places a bid. That first bid wins the auction (assuming the price is above the reserve price), avoiding any bidding wars.

        • Skinnerr on 17/03/2024 - 12:26

          Yeah - read here

          Glad I don't live in Sydney!

    • Homr on 17/03/2024 - 11:06

      Funny enough the dude passed away within the same year. I usually don't make fun of people passing away but he deserve what he got that roach. Hope he rots in hell

      Nasty, but what comes around goes around

  • john_conner on 17/03/2024 - 11:07
    +4

    Report it. Enough reports = action.

    “We transferred 0.25% holding deposit noting 5 day cooling period.”
    So what exactly does the “holding deposit” hold? I am very confused.

    • Homr on 17/03/2024 - 11:08

      It doesn't do anything apparently, I only found out afterwards. It just means I was a serious buyer and willing to put money on the table, in return, in good faith they should've pulled the ad off the market and not engage in any other offers.

      However, that is not the reason I'm upset about.

      • john_conner on 17/03/2024 - 15:36

        If you’re specifically upset about not buying at the asking price and being deceived, then next time physically show up at the office, sign the contract with cooling off period written in and give the deposit.

        Then organise your inspections and sundries. If people can get $$$ more by breaking their word, then they will.. especially REAs.

        Maybe ask them to pay you the holding deposit and/or costs incurred for dishonouring themselves. <- of course I am kidding, we all know how this would end.

        I’m not really sure how you would think it’s a done deal if the paperwork wasn’t completed. I guess at an auction it’s a lot more transparent and there is no messing around (well, vendors can still decide not to sell, I guess).

        • Homr on 17/03/2024 - 16:27
          -2

          If you’re specifically upset about not buying at the asking price and being deceived, then next time physically show up at the office, sign the contract with cooling off period written in and give the deposit.

          Even that doesn't do anything. Nothing is final until both signatures are on the contract. The REA could easily hold up the offer and then call me up later saying "sorry, someone else offered higher than you"

          So what I'm planning to do is to go directly to the vendors home address and hand deliver my signed contract and encourage them to also sign on the spot so that it is binding and no more games

          • elgrande on 17/03/2024 - 17:29
            -1

            @Homr: If you did that to me I'd never sell the house, even if you offered more.

            • Homr on 17/03/2024 - 17:30

              @elgrande:

              If you did that to me I'd never sell the house, even if you offered more.

              lose lose then

  • FlyingMiffy on 17/03/2024 - 11:10

    Yes. And in a sellers market, happens all the time. Made an offer that was also the asking price, verbal acceptance and agreement to go sign the contract after work at 5PM. While on the train there, got a call to say its now 40K more. Had to cough up 42K more in the end.

    • Homr on 17/03/2024 - 11:11
      +2

      WTF?

  • plastererJazz on 17/03/2024 - 11:14

    10% difference is acceptable and it's common at least in the Sydney region.

    In a good market, an auction could push the final sold price up to 20% above the guide price.

    There is a thin chance you could get the outcome you want from reporting the agent.

    • Homr on 17/03/2024 - 13:40

      10% difference is acceptable and it's common at least in the Sydney region.

      10% in the high 6 figure range is alot of money

    • ratman on 18/03/2024 - 08:10

      In Sydney sales sales are typically 30%-40% over listing guide. At least for the places I've been looking at for the past year.

  • R4 on 17/03/2024 - 11:53
    -2

    Sydney is a shithole

    Leave.

    • George Washington on 17/03/2024 - 13:08

      Up and down the coast is no better. My parents inlaw are looking to relocate to a coastal town. some Kid 20-21 goes to the inlaw and says your budget is below what market is currently at.

      They offered 680 for a property listed at 930. Comparable 700-750. Reason lower was it needed work. Kid full tells them off for being unrealistic. 6 months later property still listed. Kid calls inlaws back and goes owner is willing to accept 680k. Inlaw gave the kid a blast in a meeting where the manager was there over the phone, and didnt buy the place. Everywhere else is no better.

  • Nebargains on 17/03/2024 - 14:50
    +1

    I don't understand the problem. Price guide was adjusted in line with demand and you never signed a contract.

    It's not an RRP, this isn't Kmart, the advertised price is not the asking price the seller wants. It's a price guide set by the agent to attract suitable buyers. When I sold my previous house I never even told the agent what we wanted, we discussed what each of us thinks it's worth but never once said what we would accept and as a result we got way more than we expected.

    How is it that people go into 6-7 figure transactions without the faintest idea how property transactions and negotiations work.

  • Euphemistic on 17/03/2024 - 16:02

    Youre now talking about $30k over initial offer. Thats not a huge amount and they may not get it.

    If another party offered $10k more there may well be another $20k in the market.

    It sucks, but its the nature of buying a house. Until you get the contract signed, anyone can come innand offer more.

    • Homr on 17/03/2024 - 17:37

      Is there a minimum limit I have to raise? for e.g if the new offer is $xxx,xxx, can I go $xxx,xxx +$1?

      • Euphemistic on 17/03/2024 - 17:51

        You can offer what ever you want, jist need to make it worth the while of the agent and the seller.

        $1 is so small its not worth the hassle of refinding holding deposits, rearranging inspections and reports etc.

        • Homr on 17/03/2024 - 18:32

          ok $500?

          • Euphemistic on 17/03/2024 - 18:43

            @Homr: If you were a REA and got a few percent of that increase and it took 2 hours of work to organise inspections, deposit etc would you think $500 was worrh it?

            If you were a seller and had to arrange additional inspections would it be worth $500?

            IMO the only time its worth an extra $500 is if you havent accepted any offers yet. Its worth changing everything for $10k though.

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