If an agent was shagging around and not presenting your offer

[RangeRover]

I think Robin nailed it on the head. Being a mortgagee sale the agent will be aware of the ballpark figure the bank needs to make the sale happen, if the offer was near that I can assure you the conference would take a lower priority. But if the offer was below it then the agent will know it will be thrown out by the bank and sadly your offer takes a low priority. Banks can take a while to get back to the agent on any offer up for mortgagee sale.

[Marcus]

as they were going away on a conference would you?:
a) telephone their principal and ask them to present it.
b) fax it straight to the vendors solicitor.
c) put a sunset clause expiring the same day on the agreement and forward it to the agent.

"If an agent was shagging around" I guess you would know best if you are being shagged around.

The bottom line is don't put up with it.
I have had this happen to me in the past despite my best efforts at the time to secure a fast sharp price. As it turned out, another agent in the office (listing agent, double commission...) was stalling over the weekend, waiting for HER buyers to get their affairs in order. A long story but I got repeatedly lied to and out muscled by an Agent paddling her own Waka. Unfortunately it was very early in my investing career before this wonderful site could have helped me out.

I learned some very valuable lessons that weekend.

Screw the Agent and the "bridge". If you are already being stuffed around, only one of those truly exists. The vendor may not even be aware that your offer exists or that you are being stuffed around so I'd say present it to their Solicitor or knock on their door. If it is a sole listing and your offer is successful, the agency will get their commission regardless.

Ultimately I blame MY lack of experience for the deal not going my way. If the same thing were to happen to me today, the result would most likely be much different.

“Education is what you get from reading the small print. Experience is what you get from NOT reading it.”

[muppet]

Welcome back, Marcus

[TT500]

Perhaps the agent is aware of the banks bottom line, so knows for sure that he is wasting his time presenting it.

He still should email them a copy and follow up with a phone call, just to do his duty without burning too much time on a lost cause.

Agreed.
If you're not in the ballpark anna, then u r shagging the agent around.

[speights boy]

So in a mortgagee sale situation, when the agent says ' the bank won't accept this offer ', people believe the agent do they?

[RangeRover]

So in a mortgagee sale situation, when the agent says ' the bank won't accept this offer ', people believe the agent do they?

Why shouldn't they? The bank is the vendor. Why would the agent purposely do himself out of a sale by trying to get the bank extra money the bank(vendor) hasn't asked for? Possibly for a bigger pat on the back from the vendor?

[speights boy]

RR

Ok.
So I take it you believe that the agent is fully aware of the bank's real attitude to it's distressed property loan portfolio.

Put another way.
Even if the bank told the agent 3 weeks ago, ' we need at least 250k ' out of this; a purchaser shouldn't insist a lower offer be made to the bank.

[Maccachic]

The bank has then the opportunity to counter offer.

[speights boy]

Why would the agent purposely do himself out of a sale by trying to get the bank extra money the bank(vendor) hasn't asked for?

I don't understand what you are saying here.

The agent wouldn't submit an offer.

Some people are saying it is because the agent knows the bank's bottom line, and if an offer is too far below this they won't submit it.

This is not the agent's decision to make.

I submit an agent does not know the bank's REAL bottom line (which may well be constantly changing) and so should submit the offer.

[Ahar]

annaspanna.....is this property the Waiuku property in your other thread?

If so, how is it going?

[Winston001]

I'm open to being corrected but I think many people have a fundamental misunderstanding of the real estate agent's responsibilities.

S/he is an Agent for the Vendor. S/he owes professional, ethical, and contractual obligations to the Vendor - not to the Purchaser (apart from not lying or misleading etc). The Vendor pays the Agent.

So if the agent receives a low/cheeky/risible/unacceptable offer from a potential purchaser, the agent risks their entire business relationship with the Vendor when they already know its not acceptable. Indeed I've seen Vendors who are positively insulted when an agent does this and change agents as fast as they can.

An agent is not required to present every offer.


Nevertheless Annaspanna might be dealing with a slack agent but that should be a rarity in the current market.

[speights boy]

Winston
I respect your professional knowledge in these matters.

I also agree with you, and if I was a vendor would instruct my agent to not submit any offer less than a certain amount.

However, if the agent does not have this instruction; then would they be bound by this......?

9.13 A licensee must submit to the client all offers concerning the sale,
purchase, or other disposal of any land or business, provided that such
offers are in writing.

https://www.reaa.govt.nz

If they did have instructions to not submit an offer, surely all they need is to tell the purchaser (anna) they have been so instructed. Then all this confusion is over.

[speights boy]

You can quote all the rules you like, the agent will present your offer badly...

Think "There's a crap offer I recommend you you don't accept it"

I'd rather catch flies with honey than try to use a hammer.

And this is why we need the rule book, and we need to hold professionals to professional standards.


Agent fined for 'disgraceful' behaviour

A real estate agent who found a house for sale on Trade Me and helped the owner to sell it without explaining that she was an agent tried to sue the woman for commission.

http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10744829

[Marcus]

Welcome back, Marcus

Thanks Muppet. It's been a while...

[m2 real estate]

Ok time to clear a few things up, for people here

As an agent who has done mortgagee sales for banks in the past, I can say this.

The agent should not know the reserve price of the auction – only the bank and auctioneer should know – and even then it’s not until a day or so before the auction.

If the salesperson has found out the reserve then someone has done a rather crap job to start with as it compromises the whole auction. (Not saying that this doesn’t happen)

Many salespeople are crap at returning calls and that’s why the industry has such a bad reputation, however sometimes people are genuinely away or sick – still not an excuse and the manager should then step in to cover.

Sad to see that you had to wait 4 days for the salesperson to get back to you. (I would complain to the principal officer in any case) Not much will happen however. REAA is the best bet for kicking salespeople in the ass, however you still wont get anything out of it as you will not be able to prove that you have been damaged or lost anything.

Banks have a duty to their clients ie the owners of the property to try and recover as much money as possible for them. They will not act fast, and often they will not get back to the salesperson for a week. (salesperson should still be in touch with people even if they hear nothing)

Sunset clauses in mortgagee situations will not work as the banks will not move faster, they need to consult with many people mainly their own big bosses before giving the OK

This sometimes takes days before they get back to the salesperson. Banks like Westpac do 100s of auctions at a time.

Also if you want to come across as genuine, don’t fax offers back and forth. If you are in driving distance set up a time and make the offer in person. Faxed offers always reek of time wasters who just end up crashing deals because they have no money.

My advice is wait for the day of the auction and snatch it up on the day.
Trying to pressure a bank with sun set clauses will get you nowhere.