Managing Director of PK Property Search &Negotiators Sydney's Largest Buyers Agent, says he has come across a growing number of real estate agents that are preferring to market property at present with expressions of interest, or tender, rather than the auction method.
He says the agent will tell you that you need to put an offer in writing by a certain date, and that the highest offer will then be accepted by the vendor.
Kelaher says this is not the case, because a lot of the time all that the agents does is call up the underbidders and reveal the so called winners offer to them, and then they proceed in doing their best to get a higher offer to gazump them. Agents are saying that the new auction laws are stopping buyers from putting their hands up, so we need to market properties this way to get them sold.
Kelaher says this is just like running a dutch auction, and recommends that vendors do not list their property with real estate agents that want to market property in this manner.
He also says it is not a guaranteed sale because buyers are only putting in a figure, as they are not legally bound by this method until they sign a contract. Sometimes what happens once the offer has been accepted by the vendor is that the buyer gets the shakes, and the sale falls over because the buyers thinks he or she has paid too much.
At least at an auction all the buyers can see their competition and know at the end of the day they paid market value or over.
To combat this method of marketing Kelaher says advise the agent that you are looking at something else, and you can't wait for the expressions of interest or tender close date. Put some offers in and if you are not successful move on to the next property and hope that it fails at tender and when they call you back you are then in the box seat. Sometimes you have to let things go before they come sailing back to you.
Also another way to bring some sanity into this crazy marketing method is to insist that you want to be present when all the envelopes are opened that contain all the offers. This will allow you to see exactly what is going on.
Peter Kelaher is Managing Director of PK Property Search& Negotiators Sydney's first and Largest Buyers agent. His company does not sell real estate; they represent buyers only in the real estate transaction.
Peter is well known for his independent and unbiased advice when it comes to reporting on what's going on in the property arena to the Media.
Should you be wanting more information, or an interview about this subject or anything else going on in the property market please call Peter direct on Mobile. 0419-200018