{"id":19976,"date":"2018-01-18T01:00:28","date_gmt":"2018-01-17T14:00:28","guid":{"rendered":"https:\/\/www.realestatetalk.com.au\/?p=19976"},"modified":"2018-01-18T01:00:28","modified_gmt":"2018-01-17T14:00:28","slug":"when-agents-sit-on-offers-brett-warren","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/when-agents-sit-on-offers-brett-warren\/","title":{"rendered":"When agents sit on offers \u2013 Brett Warren"},"content":{"rendered":"

Brett Warren<\/strong>, as a buyer\u2019s agent, has to work with agents representing the seller.\u00a0 He explains how he protects from having the seller or the sellers agent sit on his offer.
\nTranscript:<\/strong>
\nKevin:\u00a0\u00a0<\/strong>Brett Warren is my guest.
\nBrett, I\u2019m keen to ask you, in your time as a buyer\u2019s agent, you obviously have to work through seller\u2019s agents. These are agents who\u2019ve listed a property for sale. That\u2019s largely how you come across a lot of your stock. How do you stop a seller or a seller\u2019s agent from sitting on an offer when you make an offer?
\nLet me paint the picture here. You make an offer and then you don\u2019t hear back from the seller \u2013 or in this case, the seller\u2019s agent \u2013 for some time, because they\u2019re probably sitting on your offer and may be shopping it around, or that\u2019s a suspicion you may have.
\nBrett:\u00a0\u00a0<\/strong>Yes, absolutely. Selling agents are experts at this. We have to remember they\u2019re actually working for the seller, so they want to try to draw that process out. Particularly in a rising market, all it takes is another offer and the game changes.
\nAs a buyer\u2019s agent, they\u2019re the conduit to the seller, so you obviously have to treat them with respect and build strong relationships with them, be upfront, be honest, even though they may not be the same for you all the time. But if you\u2019re upfront and honest, it makes things a lot easier when they communicate with the seller. And rather than them sitting on that offer, you want to try to create a little bit of urgency.
\nKevin:\u00a0\u00a0<\/strong>How do you go about doing that?
\nBrett:\u00a0\u00a0<\/strong>There are a number of ways. Inserting clauses or deadlines and things like that into the contract. You may be looking at other properties on the weekend. If we\u2019re offering on properties midweek, we\u2019ll always say we want an answer within 24 or 48 hours \u2013 that way, if we\u2019re successful, great; if we\u2019re not, then we\u2019ll go and look at other properties \u2013 so they get the idea that we\u2019re not going to hang around for three or four days through the weekend, through two other open homes, for them to make up their mind what they want to do.
\nYou have to take control of that situation and turn the situation around and put the pressure back on the seller. Just let them know very clearly \u2013 whether it\u2019s with a clause or whether it\u2019s through verbal communication \u2013 that you\u2019re not going to be hanging around for two or three days waiting for them to make up their mind while the offer is being shopped around and things like that.
\nKevin:\u00a0\u00a0<\/strong>When we use the term \u201cbeing shopped around,\u201d it is illegal for an agent to talk to another buyer and say, \u201cWell, I have an offer from this buyer and the offer is this,\u201d and give them all the terms and conditions. That\u2019s gazumping, and that is illegal.
\nBrett:\u00a0\u00a0<\/strong>Absolutely. But what isn\u2019t illegal is the multi-offer scenario. Sometimes all it takes is another person or persons to come into the game. And you have to put your best foot forward. In that situation, you just have to be very comfortable with what you\u2019re going to pay.
\nIn some cases, people can get very carried away with emotion in a rising market if they\u2019ve missed out three or four weeks in a row and things like that and can sometimes pay fairly well over. So, you just have to be very comfortable with your offer and understand that that could happen.
\nKevin:\u00a0\u00a0<\/strong>I think there\u2019s a great lesson for buyers, too, in understanding that they may have been looking around for some time, a property might have been on the market for quite a long time, and then all of a sudden, it becomes attractive because it may have been overpriced, the market might creep up, and then all of a sudden, it becomes an attractive property for you, bearing in mind that it may also become a very attractive property for someone else, so you\u2019re likely going to be in competition.
\nBrett:\u00a0\u00a0<\/strong>Yes.
\nKevin:\u00a0\u00a0<\/strong>When you\u2019re told that there\u2019s someone else interested, how do you know that it\u2019s a fact?
\nBrett:\u00a0\u00a0<\/strong>Generally, the agent should provide you with a statement to say, \u201cThere\u2019s another offer. Do you understand there\u2019s another offer and you have to put your best foot forward?\u201d A lot of the time, that doesn\u2019t happen, but if you have a strong relationship with an agent \u2013 either way \u2013 you just have to be very comfortable with what your offer is and understand that this is your final shot, your last chance at getting it. That\u2019s the hard part. Auction is a good thing; you can kind of see people and be $1000 in front, but sometimes you could be $10,000, $15,000, or $20,000 apart. You just don\u2019t know.
\nKevin:\u00a0\u00a0<\/strong>I guess when an agent does give you a statement \u2013 it\u2019s called a multi-offer situation \u2013 it\u2019s a declaration, and you can take it as fact that there is another offer on the table. If an agent comes to you and says, \u201cLook, we\u2019ve had someone coming back for a second inspection,\u201d that\u2019s nothing. That\u2019s not a bird in the hand; that\u2019s just a bird in the bush. They may or may not make an offer. So, don\u2019t be threatened by that.
\nBut certainly if you get a multi-offer declaration, that\u2019s something you need to take seriously.
\nBrett:\u00a0\u00a0<\/strong>Yes, absolutely. If you\u2019ve been getting the runaround by an agent and they\u2019ve been doing that to you, and they do say, \u201cLook, there\u2019s another offer,\u201d I probably wouldn\u2019t be putting my best offer in until I actually had that form in my hand.
\nIf you trust the agent, you\u2019ve worked with them before, and they\u2019ve told you there\u2019s a multi-offer, and you went to the open home and there were 20 other people, then chances are there is.
\nBut if you\u2019ve seen the property at some stage and you\u2019re not sure whether the agent is legitimate or not, you can ask them to provide you with a multi-offer form. We\u2019ve done that before. We\u2019ve called them out, and that sometimes hasn\u2019t been forthcoming.
\nKevin:\u00a0\u00a0<\/strong>You know full well then that there is no other offer.
\nBrett:\u00a0\u00a0<\/strong>That\u2019s it.
\nKevin:\u00a0\u00a0<\/strong>Another piece of advice, when you do get that form, make sure you read it carefully, because you\u2019re going to find that in that form, you may not have the opportunity to come back. In other words, they\u2019ll ask you to put your best and final offer in. And believe me, if that\u2019s what they ask you to do, that\u2019s what you need to do.
\nBrett:\u00a0\u00a0<\/strong>Absolutely. And like I said before, though, make sure you communicate well with the agent, because we\u2019ve actually been successful in multi-offers before with a lower price point but we\u2019ve understood the seller\u2019s circumstances. They may have wanted a longer settlement to move out, or they may have wanted a shorter settlement or a rent-back period.
\nWe\u2019ve been successful by $10,000 or $15,000 less just by giving them what they want. And that\u2019s important to build that relationship and understand exactly what they want.
\nKevin:\u00a0\u00a0<\/strong>Having a relationship with the agent so you can actually say, \u201cLook, I know we\u2019re in competition now. What is it that I can do in this offer that will make it more appealing?\u201d Forgetting price for a moment, because it\u2019s not always about price. That\u2019s the point you\u2019ve just made. But when you have that relationship with the agent, you can ask those kinds of questions.
\nBrett:\u00a0\u00a0<\/strong>Yes, definitely. Absolutely. And that\u2019s what you need to understand if you\u2019re buying in those kinds of areas. You need to understand the agents, how they work, and how they communicate.
\nKevin:\u00a0\u00a0<\/strong>Great. Very good advice, Brett. Thanks for that.
\nBrett:\u00a0\u00a0<\/strong>No problem.
\nKevin:\u00a0\u00a0<\/strong>Brett Warren, of course, is a buyer\u2019s agent, and he\u2019s with Metropole Properties in Brisbane.<\/p>\n","protected":false},"excerpt":{"rendered":"

Brett Warren, as a buyer\u2019s agent, has to work with agents representing the seller.\u00a0 He explains how he protects from having the seller or the sellers agent sit on his offer. Transcript: Kevin:\u00a0\u00a0Brett Warren is my guest. Brett, I\u2019m keen to ask you, in your…<\/p>\n","protected":false},"author":176692471,"featured_media":19977,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[32,33,10,11,13,25,27],"tags":[101],"class_list":["post-19976","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buying-a-property-topic","category-case-studies-topic","category-kevin-turner-sponsored-channels","category-kevin-update","category-latest-story","category-sponsored-channels","category-trends-topic","tag-podcast"],"yoast_head":"\nWhen agents sit on offers \u2013 Brett Warren - Realty Talk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/channels.realty.com.au\/realtytalk\/when-agents-sit-on-offers-brett-warren\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"When agents sit on offers \u2013 Brett Warren - Realty Talk\" \/>\n<meta property=\"og:description\" content=\"Brett Warren, as a buyer\u2019s agent, has to work with agents representing the seller.\u00a0 He explains how he protects from having the seller or the sellers agent sit on his offer. 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