A question for both, agents and buyers

[Aleksandra]

Hi,

I have a moral dilemma question for both, buyers and agents and I am interested in your opinions.

Lets say that a potential buyer from UK arrives to Croatia to inspect a property they are interested in. This property (as it usually happens) has been advertised through more than one agents.

When arranging the viewing with the seller, the agent is told by the seller that a different agency he is advertising the property with also has a serious potential buyer who has already viewed the property a few times.

The potential buyer from UK likes the property, in fact, they return to view it again the next day, but as Brits are, will not put an offer there and then.

A few days after the property viewing the agent gets a call from the seller who says that the other serious buyer will be arriving for another viewing in 10 days time and that he (the seller) expects him to put an offer on the property. The seller asks the agent to pass this information to UK buyer.

What should the agent do? Seller's story may or may not be true, however:

1) If the agent does not mention this to the UK buyer, the UK buyer might have passed on the property they were very interested to buy

2) If the agent does mention this to UK buyer, then this may or may not be true and in any case it may look like a "hard sell".

If you are the agent, what would you tell to the potential UK buyer (if anything)?

If you are a UK buyer and you really like the property, would you like to be told about the other buyer, and if so, what? And if you were told, how would it have to be told so that you, the buyer, do not feel pressurised by the agent?

Many thanks!

[Carol]

I would tell the Uk buyer but i'd add a caution note. Maybe its true maybe its not, but its the buyers call to decide whether the buyer should take the risk or not.

to be honest, you can usually get a feeling for whether its true or not as when the sellers lie they all typically tell one of a limited number of fairytales. After a while you've heard them all several times. If the story has orginality or checks out with the other agent, then you take it more seriously and suggest your clients do so too. If the client thinks you are giving him the hard sell at this point, well that's up to him. He's met you by then so either he's determined to think you are dishonest or he trusts you at least a little. Some people have chips on their shoulders before they even get off the plane and to be honest that's going to be a problem for them whoever they deal with.

[darcy]

Whenever I had an issue with a real estate agent, that was because the agent had a dilemma. As an agent, you are just a messanger and you want for your buyer to know all you know about the property. Only in that case, the buyer feels confident with you.

If you are afraid of the game seller is playing, well, your situation is very common and you will ask for each buyer to present their best offers (that would be the bst oucome for the seller). I know that Croatians does not have a feeeling for business culture, but ...

[mc]

I don't think we saw a property that didn't have someone interested in buying and if we didn't put an offer in quick we would miss out. ;D

I don't see why this is a dilema for the agent, I would certainly like to know what the owner was saying, however if they said that, especially in Croatia, I would more likely make me walk away than put in an offer.

[Aleksandra]

Thanks to all who have voiced their view so far. What Carol says makes sense, but I am also very interested in what buyers think.

Mc's comment that he would more likely to walk away is exactly what I would do if I was a buyer. What I am, however, not able to assess is whether the buyer would walk away from the property or would the bad aftertaste also rub onto the agent causing mistrust. I might have spent a lots of time (and incured costs) building the trust with the buyer and doing my best to be completely above the board, for this trust to be wiped out by a greedy seller.

I do not have a dilema if both buyers wants to buy throug the same agency - this is much easier to handle. As Carol said, you can get a gut feeling if the first buyer is serious. In that case it is fair to say to the second potential buyer "We can show you this property if you wish, however, you should know that we do have someone who has expressed a serious interest and it is quite likely that this property will be off the market soon and therefore would not want to waste your time." In fact, if this property was the main reason why the buyer coming all the way from UK, I would advise them not to waste their money on the trip.

The dilemma is when the seller says there is another buyer through another agency (which can be any of the 20-odd agencies advertising the same property). I have no way to verify this nor have I met the "other buyer" to assess whether they are serious or time wasters.

Locals know that when someone is coming from UK (especially outside high tourist season), they are likely to be more serious buyers because they would not otherwise spend the money on the trip - they are not Croatians, Italians, Slovenes or Austrians who can drive a few hours and pop in for the weekend.

Sorry this is long-winded!!!

[jill]

I can't see the need for all the 'cloak and dagger' stuff. The agent should tell it 'as it is' and credit the prospective purchaser with enough sense to decide for himself if they want the property enough or not. It's perfectly simple. First come, first served.

First to put their money down at the preliminary agreement gets the property. As the purchaser all you have to do is if you want the property and think the price is fair is go for it, if not, don't, and disregard possibilities of other buyers. There is the likelihood of new possible purchasers popping up from one day to the next (in fact a new party is much more likely to go for the property than someone who has been dithering for weeks). Ditherers and 'long term negotiators' are often a 'waste of time'. In my experience, it's the customer who sees, falls in love, and is ready to put their money where their mouths are fast that usually get the deals.

[jill]

kitty said:

.

Mc's comment that he would more likely to walk away is exactly what I would do if I was a buyer. What I am, however, not able to assess is whether the buyer would walk away from the property or would the bad aftertaste also rub onto the agent causing mistrust.

I really don't think you would walk away if the property were perfect for you and you'd not seen anything to compare with it!

I think if you decided to 'walk away' you were not that seriously interested in the first place or feel that there are 'plenty of other fish in the sea' and I'm quite sure your agent will be delighted to introduce them to you!

[Carol]

it is not fair to make generalisations about a whole nation and then apply it to every individual but I have to say that the british buyers we deal with are amongst the least serious: you would think with the cost of flights and low number of days holidays relative to the rest of europe that they wouldn't waste time, but its very typical that they want at least two visits to Croatia to see property before they can even begin to think about making their minds up. And when they do decide to buy, they are the most likely to make silly offers because they convince themselves that the price has been hiked when the seller heard that a brit was coming to see it.

[irac]

There are two views, 1. lots of tyre kickers who like the idea of a place in the sun and have been conned or conned themselves into thinking that they can buy something for nothing, and that it's a holiday too. 2. If you're buying a new pair of shoes do you go to one shop, look at 6pairs and buy? Unless you're in an extreme hurry and know what you want, or need to get rid of the money, then yes you might. But the vast majority of people visit a couple of shops, look at lots of shoes - and this is when the cost is only €30-100, now make that €30-100,000 and agents feel hard done by? There needs to be a healthy dose of reality on both sides!

[Carol]

who says agents feel hard done by? Well actually we often do but its not the buyers who mess us around!

[irac]

Maybe you forgot posting this, but it seems that maybe you feel a little hard done by in some cases? And not just by vendors it seems.

Kitty, if you're operating normally and above the law you have an obligation to tell the prospective buyer, you can add a caveat that the vendor may be trying to force a sale. However, if the buyer is sreious then they will either wait and see, or come back and buy it. For evey sale or deal lost another one can be made if your product is good and you believe in it.

quinne said:

it is not fair to make generalisations about a whole nation and then apply it to every individual but I have to say that the british buyers we deal with are amongst the least serious: you would think with the cost of flights and low number of days holidays relative to the rest of europe that they wouldn't waste time, but its very typical that they want at least two visits to Croatia to see property before they can even begin to think about making their minds up. And when they do decide to buy, they are the most likely to make silly offers because they convince themselves that the price has been hiked when the seller heard that a brit was coming to see it.

[darcy]

Kitty,

If you get into situation when there are multiple buyers for a property, what do you usually do in Croatia? Also, do you split your commision with the other agent?

[jill]

Darcy, gosh, this is making it a bit complicated!

First come, first served. Whichever agent's client put down their deposit first makes the deal and that agent claims his commission. Simple as that. One of the advantages of the 'mediterranean system' (i.e. prelim + deposit clinches deal and balance follows) is that, practiced correctly, it effectively stops 'gazumping'.

[darcy]

Jill,

I am a seller and I have 2 agents telling be they have 2 "hot buyers". I want the best deal for myself and I ask for the "hot buyers" to put their best offers. What is wrong with that?

Remember, I am not an agent (who wants a sale), I want best deal.

What would you do?

[irac]

Jill, oh god, gazumping goes on, contracts are torn up and tears are shed. Usually a "rich" family member appears back and then scuppers the deal in order to put the place back on the market in a few weeks for a higher price.