Reading this story, I was reminded of something that happened to me a few years ago.
I was selling my apartment because I had just managed to buy a house. Obviously, I wanted to sell as quickly as possible, at the asking price (or higher).
The process started well, with the estate agent handling most of the paperwork. Cleaning down the whole place wouldn’t be a problem either; I was going to hire a crew for that. Preparing for the viewing, I bought flowerpots and tidied up the yard to make things prettier.
So, when did the problem start? You guessed it: not when dealing with professionals, but when dealing with potential buyers.
First, the estate agent called me and said that there was a potential buyer who wanted a viewing outside of the time he had set up. This would mean that I would have to be there and show them around myself, exactly the kind of thing I’d hired an estate agent to handle for me. I also had to tidy up, since the cleaning crew hadn’t been there yet. Honestly, I could have refused, but I desperately wanted as many people as possible to come to view the place, to increase my chances of getting the price I needed. The lady arrived, and I showed her (and her two small kids) around the place. She was pleasant but ended up not wanting to make an offer.
A couple of days later, the agent called again. ANOTHER person wanted a private viewing. The timing was awful, as I was swamped at work, and I also had to do more cleaning and tidying up before he arrived. I didn’t feel like doing this extra work, after all, the estate agent was supposed to be handling the viewings, but once again, I allowed it.
This time, a young man arrived and looked around the place. After showing him around, it became obvious that he was a first-time buyer. Why? Well, sometimes, in a hot market, a buyer will try to ‘snipe’ the home by making an offer directly to the seller instead of going via the estate agent. It’s a practice that’s frowned upon since it means fewer buyers get to actually see the place, but it happens quite a lot. It can be good for the sellers, though, because the buyer will have to bid above the asking price to convince the seller to sell without showing the home to any other buyers. Apparently, though… this guy didn’t know that.
Potential Buyer: “I’m interested. Can I make a bid now?”
Me: “Well, you can talk to the estate agent and…”
Potential Buyer: “How about [price almost 10% LOWER than the asking price]?”
Me: “Uh… no.”
As soon as he made that low offer, I knew he didn’t know what he was doing. In order to tempt a seller to take the home off the market, the typical thing a buyer will do is bid higher, not lower. I wrapped up the meeting, got him out of there and immediately decided not to do any more private viewings.
That same evening, the same potential buyer started sending me text messages, again, directly, instead of talking to the estate agent.
Potential Buyer: “Bro! Sell me your apartment, I really like it!”
Me: “You’ll have to talk to the estate agent. The reason I hired him is so I don’t have to deal with these matters myself.”
I also wanted to say that I wasn’t his “bro”, but I held my tongue.
The rest of the process went okay, but the estate agent told me he hadn’t had many people coming to the official viewing, so I was nervous that I wouldn’t be able to sell. Eventually, though, there was one person who made a bid just under the asking price. According to the estate agent, he was a nice guy, so I accepted his offer and prepared to move on. Enter: the afore-mentioned ‘sniper/bro’.
He sent in a bid at the asking price five minutes before the deadline. This might work on eBay, but not in the housing market. When making a bid in this country, you have to give the agent time to inform the seller about the offer, as well as the other bidders, and give them time to react. Taking the advice of the agent, I rejected that offer and accepted the first one, even though that was slightly lower.
The estate agent said he would do his best to ‘educate’ the late bidder on the correct process.