Auction process passed in but real estate agent no go on counter -advice appreciated

[RollingCloud]

Hi

Just been to an auction. I was only bidder and it was passed in. Real estate agent pressuring me to make best offer. I said at this time it is my auction bid. She said wayyyyy off. I asked what vendor wants but she wont tell me. Pressuring me to hike up my offer. Can I ask for their counter, as are we still in negotiation? She says that after today the s and p agreement ceases. I haven't been in this situation, usually been outbid so wondering how to approach. I though that highest bid would be considered as offer and then vendor comes back with counter and go from there.

[Damap]

Quite normal Rolling. Agent works for seller. Make an offer you'd be happy with and see what happens!

[RollingCloud]

Have done thanks

[donthatetheplayer]

Hi
She said wayyyyy off.

She would say that. Your bid is the only offer they have at this point so it effectively goes back to being a negotiated sale. As Damap says, make an offer you're happy with. Or just stand firm on your final bid and let them go back to market if they don't want to accept. If you're not too fussed about losing it you could always turn it around and say your final bid figure will no longer be on the table tomorrow. It works both ways.

[RollingCloud]

Thanks, have done as Damap said and will wait and see. I feel sorry for others that are pressured in the auction process, she was having panic attacks when I was not giving answers but asking questions.

[donthatetheplayer]

I always tell Agents (very nicely, so as not to come across as a knob) if I miss out on it I know another one will be along next week. Once they know you have zero FOMO it's usually a more rational discussion / they relax their pressure techniques.

[RollingCloud]

There is another auction tomorrow, have advised

[Damap]

Another thought with this. If you buy regularly get an agent on board who becomes a friend. I have 2 and I always get them to arrange to work in with the listing agent. That way I am only ever communicating with an agent who is working for me and I get the truth about what is going on post auction etc.

This is very useful. I had a situation recently looking for a client where my agent said there was a property going to early auction and he was sure there was something funny going on as it had a pre auction offer accepted on the day it was listed that was very low. So I attended auction 3 days after it was listed and ended up buying it for my client. The listing agent was stunned when a second bidder was suddenly in the room. Paid arguably 100 to 150K less than it should have sold for thanks solely to an agent on my side.

[Maccachic]

Heard a little story from my accountant - one bidder in an auction for a property in Tauranga and they paid $50k over the reserve - I prob should have got the auctioneers name must have been one happy seller.

[HouseWorks]

Once they know you have zero FOMO

Fear of Missing Out. Agents really play on that. But it's the same with the vendor who needs to sell then they don't want to lose the buyer, the buyer has the money and in a stronger position if there isn't others. For all the talk of a strong market some auctions have only one or two buyers.

[Davo36]

Heard a little story from my accountant - one bidder in an auction for a property in Tauranga and they paid $50k over the reserve - I prob should have got the auctioneers name must have been one happy seller.

How did that happen then?

[cube]

Could be a low reserve and the opening bid as $50k over.

[Bluekiwi]

Auctioneer does not have to say when the reserve has been hit, if its fierce bidding you could easily go 50k over reserve before telling the auction room its on the market.

For the poster I would make sure your offer turns from a highest best to an actual signed S&P that the agent can put in front of vendor.
As what the agent tells you and what the vendor tells the agent, and what they will really accept, are complete unknown's really.

Then if the vendor is serious he can take your offer and sign it back at a real price.

But before you hand the offer over, you should pick a property in your head that is similar, and say you would like an answer in 24 hours so you know where you stand.
And by the way you are also looking at another house tomorrow that your partner is really interested in as well, ramp up the pressure on the agent and vendor.