Top bid at auction, agent texts us to say we’ve got the house…2 hours later says “vendor has changed their mind, can you pay more”

  1. Psychologically, would it be better to immediately counter-offer minus $30,000 rather than wait? I can't decide, I guess it depends on the details of the scenario and how likely the vendor is to withdraw out of spite

  2. Great points! I didn’t think about the sunk cost of the auction or the long term effect of it sitting unsold on the market. Thank you!

  3. I think it’s a mixture of both.. the agent text us on Saturday evening saying “the vendor has found a property they are interested in so I feel confident they will accept this offer” which confused the hell out of us.. were they motivated to sell? was this all a pricing exercise? It’s hard to know atm

  4. The agent just wants a sale, and thus a commission, especially in these no doubt trying times. The price difference will have a negligible effect on the amount of the commission, r therefore this will be vendor-driven. Perhaps whatever caused the vendors to be up late on Friday night (I am assuming that the action didn’t start at 10 pm) may still be affecting their judgment. Play hardball, it’s a buyer’s market and becoming even more so. Vendors are being cunts.

  5. The extra commission is probably less than a grand, compared to closing the sale right now. More likely to be the sellers imo.

  6. I bet the agent hasn’t even had the vendor agree to the price. It will be dodge sales tactics where he takes the offer to the vendor to pressure them to selling and at the same time reeling in the purchaser or OP and then emotionally having them so involved they try snd squeeze a little but more out. We should name and Shame the REA company.

  7. aaaaaah THAT’S why they ALL say #1 agent in Auckland / New Zealand / Southern Hemisphere in their email signatures hahahahaha

  8. In this instance it seems like it’s the vendors, not the agent that’s being the POS. I am DAMN sure the agent wants this sold, the $30k difference here is peanuts into his pocket.

  9. Yes. They hand out monthly awards. "Biggest slimeball" "Best scam" "Most bullshit" and so on.

  10. Long overdue. The fee structure needs to be overhauled. It hasn't changed since the 80's. Realtor fees should be capped based on weeks on market. Or billed by the hour ( like most professionals).

  11. FYI they do have to accept the highest offer over the reserve and although they don't advertise reserve, the auctioneer will state when they hit reserve in the auction.

  12. Auctions are a way to get a bunch of people in a room, set the reserve way too fucking high, wait for the highest bid, and then start negotiations upwards.

  13. As well as the deposit requirement. It’s not a requirement and can’t be enforced. Who on earth has 10% in their account when buying in a major city?

  14. I don’t disagree about putting a price on but agents don’t agree to offers, vendors do so not sure how you’d enforce that

  15. Went through a similar thing. Made an offer, agent says stop pissing us around what's your best offer, we say our best offer they say no. He come back the next day asking if we can com a little I said "we gave you our best offer that's all the bank will lend us" Comes back 2 weeks later and says they will take our offer. We weren't interested and were annoyed being pissed around. Fuck'em don't accept their BS where possible.

  16. This is all normal up to the point where the agent said you've got the house when you hadn't . You don't have it until an unconditional agreement exists .

  17. Even if your new offer is $30,000 less than the auction price, every time they come back asking for more, withdraw and offer $5000 even less. Tell them that your offer drops $5000 for every hour they screw you around.

  18. Your last sentence in your second to last paragraph says it all. Vendor has had second thoughts and the agent has celebrated too soon. A deal is never done until its on paper, I would suggest this is a new agent for a, celebrating too soon, b, texting instead of calling, and c, not knowing your solicitor details already. As for the vendor, theyre just bring greedy.

  19. Yea any type of verbal/casually written Yes will likely be thrown out, the legislation and common law made it pretty clear it must be signed on the dotted line. I think someone managed to win a case through some casual written support but that was for a commercial property.

  20. You'd think with an auction, the deal is done when the hammer hits the table. Can the auction winner later decide he doesn't want it, with no consequence?

  21. I sold our first home a couple of years back and was shocked getting a look behind the scenes. Basically the auctioneers set the reserve arbitrarily high above the 'true' reserve. That means when they do reach the highest bid they get a second chance to take that person into the back room and squeeze more out of them. Even more cheeky, sometimes they'll squeeze extra in the back room then go back into the auction room and treat it like another bid to give them a third chance to see if anyone else re-enters bidding!

  22. Good on you. Bloody scumbags pulled the same nonsense on my mother-in-law. The reserve is some bullshit. If no one wants to pay that then it's too high.

  23. Seems agents and vendors are yet to realise bullshit tactics like this only work in a rising market where there is a steady stream of buyers

  24. We had something similar recently. Went into negotiations with a vendor, offered them 10K below asking and settlement in 3 weeks due to them moving over seas. We offered to buy their fridge and dining table to save them trying to ship/sell. Husband agreed but had to get his wife (already in aus) to sign off. Took 2 days to get an answer then they came back with a counter offer of 5K OVER the asking price and said they would sell us the fridge and dining table also. We declined and said our original offer is our final offer we need an answer in 24hrs or we withdraw. Agent kept pulling weird shit like saying repeating the figure I was offering but adding 2K or 5K and when I corrected him he would laugh and say okay sorry bro but then do it again.

  25. Uuuugh that is the definition of a time waster right there! Sorry you guys had to go through all of that drama.. has the agent / vendor come back to you after changing their mind or do you think the deal is dead now?

  26. This is interesting, I'd look into acceptance laws as he told you your offer was accepted in writing. Usually you need a copy of the signed and dated contract for it to be binding but there are loopholes. I witnessed one in action last year. We had a multi-offer situation on a very sought after home. There was one offer much higher than the rest and after negotiations, the owner accepted the highest offer. The salesperson sent a congratulations text to the buyer at about 7pm and because the owners were unable to sign that night due to some plans, and they were going to sign in the morning. They had genuinely accepted their offer.

  27. Looking at red flag number one you might have a case that the agent has breached their obligations under the Fair Trading Act.

  28. Could this be a deliberate ploy making you think you have got the house but they never intended to sell at that price and then you are excited and thinking of future in that house etc. Then they say oh actually sorry need more hoping your emotions of fear of loss will make you pay up

  29. It very well could be! Someone with more experience with agents might be able to shed some light on if an agent would / could do something so scummy. Lucky for us we were literally maxed out so couldn’t offer more even if we wanted to haha

  30. We had the same thing happen. Highest bid at auction. Over what the indicated price would be. Turned out the vendor had already done a deal to swap properties with someone else and was using the auction to find out what the market value was. Even the agent was blindsided.

  31. The red flags are not really red flags… except to tell you the seller wants more. It’s normal if the house passed in. The seller, in this market, probably has higher expectations, so normal stuff.

  32. Typical agent behavior whether it’s auction / negotiation / multi-offer situation. Vendors / agents seem to still ask for Nov 2021 prices. Lowball them.

  33. Sounds like a very similar fee to the agents total commission and marketing which they probably forgot about. If they really want to sell, the agent could reduce their commission. Regardless not your problem

  34. Don’t worry about it, when they come back in a month or so, drag it out a bit and reduce your offer by $50k. And don’t act too keen/ dissappoined in the meantime.

  35. Report the to the real estate authority. This is a rather serious breach of their ethics as the deal was closed, that TXT is the acceptance of a legally binding contract and so you are probably entitled to some form of compensation and the agent needs to get the message that they can’t do that.

  36. Fucking walk bro. You'll get a better house for $100k less in 3 months anyway guaranteed. Are you following US fed policy? Sellers an idiot. They'll come crawling back.

  37. Move on, it's so easy to get invested in one house, Like drawing a straight with your last 10 big blinds. Draw it out for as long as you can and withdraw to teach them.

  38. If I was the vendor or the purchaser I'd ask the REA to cut their commission by 15k and split the difference with the other party. Deal gets done, agent earns a little bit less to get the deal across the line.

  39. Technically they have conveyed acceptance of your offer. It doesn't have to be through a signed document so technically they're in a contract. If you want it, just mention that. If they don't accept that, feel free to take it up with the REA who I'm sure will call them on their BS, if you feel like going through that. Do you have a lawyer? Did they look over the contract? I would check that nothing else is messy like that. It does sound like it's the vendors, and unfortunately, the salespersons job is to act FOR the vendor. Vendors can be finicky like that, but since acceptance was conveyed the offer is accepted and there is a contract in place. Can always email the manager and agent of that branch with your concerns.

  40. Definitely a blessing in disguise! Let it goooo. People that irresponsible have not taken care of the details.

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