Making an offer bypassing the RE agent, is it ok?

[ak22]

A bit of a background, made an offer to a property to be owner-occupied property. This has been accepted subject to due diligence. 3 days of Finance clause, and found out Bank can't approve our loan. So I have to cancel my offer due to finance falling through.

Now instead of requesting for extension from agent (ie another way around for me to secure loan is to top up current property as a deposit for the owner occupied property), I canned the whole agreement.

A month after, I've been pre-approved and capable of purchasing the property (with a cash deposit on hand) but I can only make an offer a maximum $, which is $25k below what I've originally offered/agreed with vendor (from original offer time)

My query is, can I go behind the real estate agent, ie go straight to the vendors (I have their information from the SPA from first offer) and tell them I'm very interested to purchase the house on a private agreement (no agent involved). This will help save them around 20k-25k. But I can only offer this much $.

House has been on the market for 6 months now. So, I 'm not sure how the vendors are going to take this. I know it should be alright but I only have one shot (i guess) to take another chance on this property I've been eyeing for so long.

Cheers for your thoughts!

[jimO]

doubt it as the agent was involved with you initially he still gets his cut

[Nick G]

Standard vendor agency agreements will mean that the vendor is legally obligated to pay the agent regardless since they were instrumental in your offer being presented to them.

However $25K is not that much. You could negotiate through it.

[Davo36]

A bit of a background, made an offer to a property to be owner-occupied property. This has been accepted subject to due diligence. 3 days of Finance clause, and found out Bank can't approve our loan. So I have to cancel my offer due to finance falling through.

Now instead of requesting for extension from agent (ie another way around for me to secure loan is to top up current property as a deposit for the owner occupied property), I canned the whole agreement.

A month after, I've been pre-approved and capable of purchasing the property (with a cash deposit on hand) but I can only make an offer a maximum $, which is $25k below what I've originally offered/agreed with vendor (from original offer time)

My query is, can I go behind the real estate agent, ie go straight to the vendors (I have their information from the SPA from first offer) and tell them I'm very interested to purchase the house on a private agreement (no agent involved). This will help save them around 20k-25k. But I can only offer this much $.

House has been on the market for 6 months now. So, I 'm not sure how the vendors are going to take this. I know it should be alright but I only have one shot (i guess) to take another chance on this property I've been eyeing for so long.

Cheers for your thoughts!

This is a horrible way to proceed in life.

The agent introduced you to the property (and I mean 'introduced' in the legal sense in this area) and you want to strip him/her of their fee - BECAUSE you say you can't afford to go higher.

You just need to make the best offer you can. If that is $25k lower than before, then so be it. Perhaps you will get it, perhaps you won't. But in the latter case at least you won't have ripped anyone off.

[ak22]

Thanks all for your insights. I have decided to go back to agent and let him know that I'm still interested to make an offer. Told him my story on why I'm offering lower. He said he will have a chat with his vendor and will come back to me.

[Davo36]

Thanks all for your insights. I have decided to go back to agent and let him know that I'm still interested to make an offer. Told him my story on why I'm offering lower. He said he will have a chat with his vendor and will come back to me.

Good on you. If you can't pay more, then you can't. And the agent will just have to tell the vendor that. Then I guess the vendor will either agree to the lower amount or wait for a higher offer...

[jimO]

Good on you. If you can't pay more, then you can't. And the agent will just have to tell the vendor that. Then I guess the vendor will either agree to the lower amount or wait for a higher offer...

the agent may agree to take less commission.......yea

[Davo36]

the agent may agree to take less commission.......yea

Well they might too.

[jimO]

Well they might too.

those new Audi's dont buy themselves youknow

[Davo36]

those new Audi's dont buy themselves youknow

Most of them make f**k all mate.

[Nick G]

Some will if it's the difference between a sale or no sale. However that's for the agent and the vendor to agree. If the agent is about to lose the listing he could drop his fee a bit to make it more palatable.