More than Gazumped in a Recent Property Buy

frostman on 02/09/2024 - 10:04
Last edited 04/09/2024 - 21:15 by 1 other user

I went to see a property for sale in NSW, it was listed in range $1.2M - $1.3M.

He said there's some offers for ~1,280,000 - I said give me 2 days and I'll get my unconditional approval. 2 days later, I called and said I got the approval from my broker, I'm happy to offer $1,287,000 ($7,000 over the highest), he said great I'll send you the contract just transfer the 0.25%. I transferred the holding deposit. He called me the next day and said if you can do $1,290,000 you've got the deal. I said fine, let's do it.

So, the following day he sent me the contract of sale via DocuSign with 10-days Cool-Off, I signed, and sent a photo of my licence. I messaged the agent and asked if the vendor signed, he said "Yes!". I sent the Contract to my conveyancer and asked him to start the process, he did

Weekend. radio silence.

Monday radio silence

Tuesday my conveyancer emails me and asked me to ask the agent to hurry up and send him the fully executed contract. I was like 'wtf?'. I emailed, the agent said yep, my office is working on it.

Wednesday night I get a call and the agent said, sorry someone else bought this property, it was already under contract and we thought they were going to pull out. Send me your details to refund - thank you come again.

This is the state of our Property Market fellas, it's run by thieves.

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Comments

    • Poor Ass on 05/09/2024 - 06:10

      Reddit post

  • jimmy1593 on 03/09/2024 - 14:29

    Why not name and shame them so everyone is aware of their practices?

  • us3rnam3tak3n on 03/09/2024 - 15:44
    +6

    99% of real estate agents give the rest a bad name.

  • SuperLate on 03/09/2024 - 17:21
    +3

    I was in a similar situation once. Went to an inspection with the will to buy the property and offered a fair price and signed the contract with a deposit same day. Got a call from REA after few hours to be informed that there's another offer 5k higher than my offer. I told the REA that my offer is final and lasts until 11:59PM. If I don't get a complete signed copy of the contract by midnight in my email than I'm out of the deal. One hour later I received the signed contract through email.

  • Hangryuman on 03/09/2024 - 17:44

    having worked as a real estate salesman, and knowing NSW has the risk of gazumping in the period before exchange of physically signed paper contracts, I would guess this event is likely where 2 sug-agents are competing for the sale/commission - in other words, only the person who got the contract signed by the vendor handed to the buyer will get the commission.

    So from the OP's story I'll guess one sub-agent (a sales person working for the licenced real estate agency) almost got the deal but it was delayed

    the second offer from the OP was 'accepted' in theory and went through all the motions, until the first sub-agent got their buyer to offer more again.

    this is why the NSW system is so hateable - with 'exchange' of contracts - it seems neither party has a contract signed by both parties until maybe 4-6 weeks after the 'deal' has apparently been agreed.

    happened to me too - I offered full price on the first open on Saturday - the agent said it was a done deal - I was busy at work on Monday, and by Tuesday morning the agent said 'sorry it was sold to someone else' - grrrr !

  • jonkvh on 03/09/2024 - 17:48
    +2

    Name & shame. Why not?

    • frostman on 04/09/2024 - 21:12
      +1

      He's threatening litigation because i left him a bad review on Google lol

      • H3R34TH4C0MM3NTS on 05/09/2024 - 17:49

        he can't sue if its true right, you have nothing to worry about if you are telling the truth. the truth will set you free. alternatively you can accuse anyone of anything as long as you put the word "Allegedly" in front of the accusation and you are pretty much safe. you can simply say I didn't say the accusation is true , its alleged. The news media do this to cover themselves.

        example

        Allegedly <insert person here> <insert Accusation>

        Allegedly My sons teacher likes to play with dolls even though his a 50 year old adult

      • jonkvh on 07/09/2024 - 13:55
        +1

        But just imagine how bad his business practices have to be, for him to try & pull you into line via legal threats.

  • Dr Prepper on 03/09/2024 - 18:01
    +1

    until the 10% clears, agents are like 304s on Tinder talking to 50 people just like you. If you want you better put a ring on it.

  • Trying2SaveABuck on 03/09/2024 - 19:26
    +1

    that is terrible the issue is the law doesnt hold REA agents to account

    their needs to be ALOT more transperency there also needs to be changes in Auction laws in which if a property meets 'advertised' price [not reserve] it must sell it should carry some risk for the vendor oppose to i didnt get what i wanted so ill private sell it now wasting everyones time

    • star-ggg on 05/09/2024 - 10:30

      We could have a system where if the property doesn't sell within the advertised price range the reserve price needs to be disclosed.

      • H3R34TH4C0MM3NTS on 05/09/2024 - 17:43
        +1

        We need a system where a vendor must accept the price that is ticketed for the property like ever other product/commodity that is sold. Imagine going to Colesworth and seeing $3 for a loaf of bread and then going to the checkout sorry that $4 now because the guy behind you wants to pay There should be a law where the Agent and Vendor must set a price that they are willing to accept if the first offer at that price comes through then they must take the offer. this is the only way to clean up the grubby industry. If they want to do a reverse auction then so be it, or if there is an auction they must disclose the reserve before bidding starts as to not waste everyone's time. The real estate industry need to stop playing games.

  • Kranbone on 03/09/2024 - 19:36
    +1

    What an awful experience. I wish they could improve the industry, especially in NSW.

  • Amumu on 03/09/2024 - 20:24

    i look at this from the bright side. At least you are not paying 1.29M, with a second highest offer 100k below.
    Vendor is most likely going to sell to the highest offer, if someone is offering higher, your offer is reasonable and around market price.
    Good luck with the next one, property transactions may be destiny. Overpaying is worse than missing out, i dont mind moving on to the next one

  • mirovich on 04/09/2024 - 06:57

    Dang! Name and shame. What area in NSW? I think REA quality is based on suburbs/LGA.

    • blackwind on 04/09/2024 - 14:29
      +1

      Yep NAME AND SHAME!

    • whyisave on 04/09/2024 - 21:21

      REA quality is based on suburbs/LGA

      Not the type of dwelling? The price?

      See how they treat you for a $10M property.

      Also, for observation's sake, go to an open house dressed well and they see you stepping out of a nice car.

  • BanannaMan on 04/09/2024 - 11:37
    +1

    Wow what a time waster.. Really sorry that happened man
    Thats incredibly frustrating

  • mitt on 04/09/2024 - 14:15
    +3

    All you can do is load up all their socials with negative reviews. Emphasise that the REA lied to you about the property being available & held your deposit under false pretences. Offer to provide evidence to any prospective clients that have doubts.

    Make it cost them more than it made them.

  • blackwind on 04/09/2024 - 14:29

    Its all because of MONEY!
    Money Money!!

  • Gaz1 on 04/09/2024 - 14:54

    I hate it when I get Gazumped…..

    • Nugs on 04/09/2024 - 18:13

      How about when you get Gaz1upped
      .

  • DontNeedThis on 04/09/2024 - 14:57
    +1

    What I don’t understand about these types of posts is why the poster doesn't name the agency/business. Why would you want to protect these scumbags?

  • ihbh on 04/09/2024 - 18:10

    it was already under contract

    Gazaumped is the wrong term to use here.

    Used as a spare my be more appropriate. Call the agent and asked what it went for (if they won't disclose, wait until settlement to check the sale price), to inform your purchasing decision. E.g. if it went for $30k more and there was no way you were going to pay that price, be happy with the outcome and leave the agent some negative reviews on Google for not informing you it was already under contract.

    Note, you should be clear on the terms under offer and under contract. If I was selling a property, I'd like some backup offers. Likewise the agent. But they need to be honest about the situation.

    • Nugs on 04/09/2024 - 18:12

      "Used as a spare"
      Prince Harry'd
      .

    • frostman on 04/09/2024 - 21:22

      Call the agent and asked what it went for (if they won't disclose, wait until settlement to check the sale price),

      These days the Sale Price can be masked even after settlement.

      • ihbh on 05/09/2024 - 09:07

        You're kidding right? It goes to the government land registry.

        Look at price history on realestate.com or domain after say 3 months and it's there.

  • Illyria on 04/09/2024 - 21:04
    +1

    Give it a year or two. You'll be able to buy the same property for a lower price.

    • frostman on 04/09/2024 - 21:07
      +1

      hahah nice cant wait

  • happydude on 04/09/2024 - 22:18
    +1

    Please send them a bill for the conveyancer.

    That's (profanity) up to tell you the contract was executed.

  • mini2 on 05/09/2024 - 06:06

    Depending on your desperation, sign an s66w waiver and lock everyone in.

  • pos on 05/09/2024 - 12:28

    You could probably make a complaint to the relevant REA body as the agent has lied about the contract being executed. Sounds like you have it in writing too.

  • realaaa on 05/09/2024 - 13:13

    Gazumped huh? there is a word for this? wow, I guess this happens a lot then..

    • frostman on 06/09/2024 - 15:00
      +1

      [Gazumping occurs when an agent or seller accepts an offer you make to buy a property at an agreed price but the property is sold to someone else. This usually happens when the vendor sells the property for a higher amount.]

  • ruddiger7 on 05/09/2024 - 14:37

    That is rough. I had a bit of a shit time negotiating buying a place last week. Shit got real when they sent through the contract and the RE agent was listed as the seller. Only at that moment they decided to disclose that to us. Fortunately able to work through it all.

  • H3R34TH4C0MM3NTS on 05/09/2024 - 15:19

    This is why Auctions are sometimes better than the smoke and mirrors with sale by negotiation. With Auctions at least you can see that the market is like for that day and work from there, even if the property is passed in and you are the highest bidder.

    If you are making a sale by negotiation, make sure you know the value of the market and set your value. That way you can put forward firm offers and if it doesn't get accepted just move on. if you have set your offer well below the market and the expectations of the vendor then you won't be hearing from them anytime soon. if your willing to meet the market or a little bit over they are going to want to close the deal pretty quick. For those agents who don't act in good faith in the negotiations and using you simply as pawns to inflate the price for another buyer, never consider any property that agent is representing again. most reputable agents want to keep prospective buyers on thier books , because they would need to be selling many properties ,so if you don't land this one theres others that could potentially be suitable for you.

  • Counter Intelligence on 05/09/2024 - 18:52
    +1

    Nothing is final until the contracts are exchanged.

    A vendor's signed counterpart of the contract is meaningless without the formal exchange of the contracts. It is unclear whether the contracts were exchanged in accordance with section 64 of the Property and Stock Agents Act 2002 (NSW).

    I am not sure what was said in your conversation with the agent, but the precise wording can greatly affect the interpretation of what happened. It might simply have been a misunderstanding.

    • frostman on 06/09/2024 - 15:00

      Nothing is final until the contracts are exchanged.

      We all know this, but it doesn't mean the agents can run a gazumping scheme to uplift their sales, as I said - whilst its not technically illegal, it's immoral and deceptive.

      It is unclear whether the contracts were exchanged in accordance with section 64 of the Property and Stock Agents Act 2002 (NSW).

      No they weren't exchange, I signed, and I SMSd the agent and asked if the Vendor signed, and he said YES.
      At this point we have the initiation of the exchange, however it turns out the vendor did not sign and it was a misleading comment.

  • sirstiv on 06/09/2024 - 09:43

    Ive bought property twice and it's honestly been stupid like this both times.

    You need to keep mentally slapping the REAs in a fever dream of a situation to get their attention and acceptance of offer.

  • xavster on 06/09/2024 - 11:14

    You don't want a criminal lawyer, you want a 'criminal' lawyer!

    When you go to sell your property, this is the guy you call.

  • frostman on 06/09/2024 - 14:57

    Big thanks to anyone that left a like on my google review comment which ive linked (via popular demand)

    Im hoping I can raise awareness against this guy so people avoid him.

    Perhaps this is how he acquired his "7th" investment property as he was telling me at the start of this fraught journey.

  • Snax85 on 03/01/2025 - 17:28

    Shocking behavior from the agent—sounds like they blatantly breached trust. Consider filing a complaint with NSW Fair Trading for their dodgy handling and potential misconduct.

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