The Brisbane market is interesting. There are suburbs and areas inside suburbs where there CAN be a boom going on.
Anything affordable or priced as it should be, moves fairly quickly.
When properties are well renovated, priced with intelligence, modern or beautifully styled, we see a huge surge in buyer interest and indeed multiple buyers resulting in multiple offers.
What is a multiple offer?
A multiple offer is when more than ONE person puts in an offer to buy a property.
No, the agent is not evil. Yes, it’s quite legal and you would love the same experience if you were selling your house. This is where experience is key and where you need an agent that knows what they are doing!
The agent can either use an Expression of interest form (which is NOT a contract but a pro-forma contract) or a proper REIQ Queensland Law Society contract with an REIQ multiple offer form attached.
You CAN insist on a proper contract as this already puts you ahead in the game as you have submitted a formal contract. However if there are 5-6 offers on one property, the agent may only have 2-3 contracts with them at an open home. Hence the EOI form which requires less paper.
The EOI form also serves to determine who a time waster is for an agent. If you make a very low offer on an EOI, it probably won’t be put on a contract. After-all paper can be more valuable than the offer presented!
You need to sign an REIQ form to state that you are aware that there are multiple offers and you have been informed of this. This forms part of the contract. Not all agents are REIQ agents – and some are not recognised by the REIQ. They may have their own “form” but remember this is not recognised by Queensland Law Society.
The idea is that you put in your HIGHEST offer.
The seller CAN choose the ONE party that they wish to negotiate with. This party may inform them it’s their highest offer or they may increase their offer or negotiate with the seller if the offer is still a little under what they like.
Multiple offers give the seller a very clear picture of market value for their property.
This is NOT a Dutch auction. It is unethical and wrong to play buyers against each other. Each party is supposed to be given an equal chance on an official contract with a multiple offer form. Period.
The agent is supposed to submit the offers to the sellers in a sealed envelope and not provide advice as to which buyer to go with.
The agent is not meant to play all buyers against each other.
It’s very pertinent that I write this blog as this week two buyers in two separate negotiations were trying to buy a property in a multiple offer situation by putting in lower offers than the expectation of the seller, despite being told it was a multiple offer situation. One missed out (yes he SAID he would pay more but clearly didn’t when asked and given the opportunity to, and he did speak English as a first language so there was no excuse), the other one didn’t speak English as a first language and seemed confused, however, happily ended up being the back up buyer when the first contract fell over.
Unfortunately not all agents are trained or experienced in this – remember it only takes 3 days to get your registration certificate to learn how to sell someone’s biggest asset.
Many agents do not invest in ongoing REIQ training and often they are non-compliant.
There’s a lot of wrong information floating around and unethical practices which does my head in.
If you have any questions about this – please feel free to give me a call!