AGENT WON'T REVEAL AMOUNT OF OTHER OFFER
AGENT WON'T REVEAL AMOUNT OF OTHER OFFER
To know what others are offering, go to the auction.
I have a concern about a real estate agent and an interaction I had this week.
I put a written offer in for a house going to auction. The agent gets back to me saying someone has now put in a substantial offer higher than mine and if I wanted I could put another offer in writing. He would not tell me what offer this other bidder had put in.
To me this blind bidding before the auction is unacceptable. I told the agent this. I said I felt it was unethical. I did not put another offer in as I felt it was getting out of hand. This was not a level playing field.
What do you think?
RESPONSE
No, I am sorry, but I do not believe this agent is being unethical in the handling of your offer. If anything, perhaps the agent is not explaining the process to you properly.
An agent's role is to get the highest price for the seller (which means avoiding auctions, but that's another issue).
If the agent tells you how much other buyers are offering, such information will mean that you will base your next offer on what other buyers are offering rather than on the most you are willing to pay.
For example, let's say you are willing to pay $700,000, but you discover the highest amount that another buyer is prepared to pay is $650,000, then you will only offer a little more than $650,000.
Agents should never let any buyers know how much other buyers are offering because it means that all buyers then make their offers based on what other buyers are offering. This, of course, means that buyers can easily pay less than they were prepared to pay. It means a lower price for the sellers - and it's the sellers who are paying the agents. Sadly, for the sellers, many agents are incompetent, especially those who use the auction method.
If you want to really see agent incompetence at work - where all buyers stand around and reveal their prices - just attend any auction.
If I were you, I'd turn up at the auction, watch what the other buyers are offering and base my bids on their offers.
Chances are that you'll do what so many buyers are doing these days - snaring bargains at auctions due to the ignorance and incompetence of agents.
***************
This article was taken from the Questions and comments page of the Jenman website.
<< Back to Latest News
Articles
INSTANT REACTIONTo put a property on the market takes effort. There is the effort in selecting the agent and marketing
strategy, the effort to prepare and present the property and then the effort to keep the presentation A1 throughout the campaign.
CONDITIONINGThe tricks used to drive your price down.
THE TWO RESERVE PRICESAt an auction, the property cannot be sold until the bidding reaches the sellers reserve price. Many sellers that sign up for an auction are comforted by the fact that the reserve price will protect them against underselling.
