Agent not disclosing buyer’s offers
A new client asked me the other day if it was against the Real Estate Act for an agent not to disclose another buyer’s offer as they had missed out on multiple properties because this kept on happening. The answer is NO it is really up to the agent or the agency how they deal with multiple buying scenario’s.
If a buyer puts an offer forward the agent MUST tell the vendor but does not have to disclose the offer to other buyers. Some agents, if the offer is strong enough, may just sell the property. Other agents won’t disclose the offer at all and others will Dutch Auction the property. Either way, without a strategy most Sydney property buyers will feel nervous and fearful about what to do next.
The key I have found to any buying situation is firstly working out what something is worth. This forms the foundation of a good buying strategy. From there, I use a series of steps to reduce the risk for my clients whether buying before auction, on the day or after.
Last year I bought a property for my client in Paddington. I wanted to buy the property prior to auction so I had to work out what I thought the property was worth. I always ask the selling agent how they deal with multiple buyers and I listen to their response. In this instance the agent set a deadline and strictly did not disclose any offers.
Even if an agent does not disclose offers I listen carefully to everything they say. I put myself in the other buyer’s shoes and really contemplate where we need to be price wise.
When I bought Paddington we beat the other buyer by $200! The key for me is securing the property for my client but not over paying. If it goes way over your budget then rest assured you are walking away from a property your not missing out!