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How Multi-Offers Work In The New Zealand Property Market · That Home Loan Hub

• 0:10
  SPEAKER_02: A lot of the times when I'm doom scrolling the internet, I come across this beautiful page where it talks about how to make an offer on the property.
• 0:18
  SPEAKER_02: Or oh my god, I've just made an offer on the property and the real estate agent rang me and it's a multi-offer.
• 0:23
  SPEAKER_02: What do I do?
• 0:24
  SPEAKER_02: Is the real estate agent lying to me?
• 0:26
  SPEAKER_02: So, anyways, this is the episode for you to listen up if you ever wondered about the multi-offers.
• 0:31
  SPEAKER_02: I've got Megan Love in the house.
• 0:32
  SPEAKER_02: Hello, Megan.
• 0:33
  SPEAKER_02: Hello.
• 0:34
  SPEAKER_02: Sorry, I forgot the other part of the surname.
• 0:36
  SPEAKER_00: That's okay.
• 0:36
  SPEAKER_00: Megan Love.
• 0:37
  SPEAKER_00: Hello Love or Love.
• 0:38
  SPEAKER_00: I don't mind.
• 0:40
  SPEAKER_02: I just call I just refer to you guys as Mr.
• 0:42
  SPEAKER_02: and Mrs.
• 0:43
  SPEAKER_02: Love.
• 0:43
  SPEAKER_00: Yep, we we sometimes use that.
• 0:45
  SPEAKER_00: Yes.
• 0:46
  SPEAKER_02: So Megan is a real estate agent that's not dodgy, that doesn't have a bad reputation.
• 0:51
  SPEAKER_02: Because you guys do, I'm sorry to say.
• 0:53
  SPEAKER_02: But overall, apparently, real estate agents rate a little bit higher than prostitutes.
• 0:58
  SPEAKER_00: So my gosh.
• 0:59
  SPEAKER_00: I guess we all provide a service.
• 1:02
  SPEAKER_02: But you know what I mean.
• 1:03
  SPEAKER_02: Like, obviously, I love you guys.
• 1:04
  SPEAKER_02: I love your work.
• 1:05
  SPEAKER_02: I've been dealing with you for a while now, and I can see how genuine you are, how trustworthy you are.
• 1:11
  SPEAKER_02: So let's demystify some of that stuff.
• 1:14
  SPEAKER_02: Multi-offer situations.
• 1:16
  SPEAKER_02: How does it even happen?
• 1:18
  SPEAKER_02: What happens when people put an offer?
• 1:20
  SPEAKER_02: And do you have any relatable stories you can share with us today?
• 1:23
  SPEAKER_00: Yeah, sure.
• 1:24
  SPEAKER_00: I mean, a lot of the time when a property is in a campaign, it's automatically in a multi-offer situation.
• 1:29
  SPEAKER_00: Like if you were in a deadline attender or an auction campaign, you would expect to compete against other people.
• 1:35
  SPEAKER_00: So we don't have to do a multi-offer form specifically for those situations.
• 1:39
  SPEAKER_00: But sometimes after the campaign, there might be a period of time where the property is still on the market.
• 1:44
  SPEAKER_00: We're still marketing it every Sunday, and the vendor might have put a price on it, which might have re-engaged interest in the property.
• 1:51
  SPEAKER_00: Suddenly, after maybe four or five weeks of not much interest, suddenly we get lots of interest.
• 1:57
  SPEAKER_00: And we might have somebody saying, Oh, I want to make an offer on the house.
• 2:01
  SPEAKER_00: There's other people that also want to make an offer on the house.
• 2:04
  SPEAKER_00: So that's where we go into multi-offer.
• 2:06
  SPEAKER_00: It is quite regulated at Harcourts.
• 2:09
  SPEAKER_00: We have to get a multi-offer form signed by all the people that are wanting to make an offer when we know that there's more than one offer.
• 2:17
  SPEAKER_00: And we can only get that form signed once we've received the first offer.
• 2:21
  SPEAKER_00: We give the multi-offer form to the second person.
• 2:25
  SPEAKER_00: And when they also sign the form, we go back to the first person and say, okay, there's more interest.
• 2:30
  SPEAKER_00: We all need to sign a multi-offer.
• 2:32
  SPEAKER_00: And that tells them, put your best offer in, you're under competition now, so that everybody is aware of it.
• 2:38
  SPEAKER_00: It's it's aimed to provide transparency rather than pressure.
• 2:43
  SPEAKER_02: Okay, because a lot of buyers out there who are not aware of the process, and a lot of them will be the first-time buyers, they're doing it for the first time ever, and they're just driven by a whole lot of missknowledge and AI information.
• 2:59
  SPEAKER_02: And their parents.
• 3:00
  SPEAKER_02: And their parents.
• 3:01
  SPEAKER_00: And and their parents were buying in a market which maybe wasn't as regulated.
• 3:05
  SPEAKER_00: And they might have had genuine bad experiences.
• 3:08
  SPEAKER_02: Yeah.
• 3:09
  SPEAKER_02: So it's not like you guys can make up those stories that suddenly there is a multi-offer, right?
• 3:14
  SPEAKER_02: There's actually has to be an offer.
• 3:15
  SPEAKER_00: Yeah, well, that can be audited.
• 3:17
  SPEAKER_00: You know, we've got managers, and you know, if any buyer wanted to question that, all they'd have to do is ring our manager and say, is there actually a multi-offer?
• 3:25
  SPEAKER_00: And then she would demand to see all the paperwork.
• 3:27
  SPEAKER_02: That's a really good tip.
• 3:28
  SPEAKER_02: So I hope you guys are listening to this.
• 3:30
  SPEAKER_02: If your agent is telling you there is a multi-offer and you've got questions and doubts about it, just call the manager of that company.
• 3:38
  SPEAKER_02: But what happens when there is like, for instance, some there are some real estate agents that just work by themselves?
• 3:43
  SPEAKER_02: Do they have a manager?
• 3:44
  SPEAKER_00: Yeah, well, no, I I can't comment on that.
• 3:47
  SPEAKER_00: But uh, yeah, we we work for a big company, so there's layers of management.
• 3:51
  SPEAKER_00: So you can our CEOs in Parramatic, like we're we're all on the internet, all our phone numbers are on the internet.
• 3:56
  SPEAKER_02: Okay, awesome.
• 3:57
  SPEAKER_02: That's really, really reassuring to hear.
• 3:59
  SPEAKER_02: And I just want to backtrack myself for a little bit.
• 4:02
  SPEAKER_02: I have nothing against any other professions, just saying, you know, in case you guys listened in the beginning, you're going, oh my god, Ziboniso.
• 4:09
  SPEAKER_02: But you know, I am a very honest person.
• 4:11
  SPEAKER_02: I speak my mind, and all I'm saying is just I'm speaking the statistics that I've been reading out there.
• 4:15
  SPEAKER_02: So nothing against any professions out there, whether it's real estate or not.
• 4:20
  SPEAKER_00: Nice disclaimer.
• 4:22
  SPEAKER_02: Look, at the end of the day, we're all humans, and I actually have clients from all sorts of walks of life, right?
• 4:26
  SPEAKER_02: And I think I wouldn't have those clients if they didn't trust me and if they didn't believe my genuineness.
• 4:33
  SPEAKER_02: I never judge anyone by what they do.
• 4:36
  SPEAKER_02: I I judge people by their actions in terms of if you're gonna be a crap human being, just don't come to me.
• 4:42
  SPEAKER_02: But if you're a good human being, I don't care what you do for a living.
• 4:44
  SPEAKER_02: If you're making an honest living, you know, everyone deserves a chance in life.
• 4:49
  SPEAKER_00: Yeah.
• 4:49
  SPEAKER_00: When when I first started as an agent, I was a bit aware of the community opinion about real estate agents.
• 4:56
  SPEAKER_00: And I've also been on some of the Facebook groups, and they're pretty ferocious.
• 5:00
  SPEAKER_00: Um, and it's it's also not always accurate.
• 5:04
  SPEAKER_00: The information is not accurate.
• 5:05
  SPEAKER_00: I very quickly unfollowed that page because I didn't find it very helpful, either in accuracy or, you know, for my own mental health to read all of that stuff.
• 5:15
  SPEAKER_01: I was about to say for our own mental health.
• 5:17
  SPEAKER_00: Yeah, that's right.
• 5:18
  SPEAKER_00: I tend to just focus on my work and get on with it.
• 5:21
  SPEAKER_00: And, you know, in the case of a multi-offer, it doesn't feel great to say to somebody, oh, you know, you've been working on this offer for a couple of weeks, but in the meantime, we've been marketing it and now somebody else also wants to buy the house.
• 5:34
  SPEAKER_00: I mean, it's it's one of those things that if I didn't tell people they were in a multi-offer, then I would feel worse though, because at least I've got them to the point where they are prepared, hopefully, to make their offer.
• 5:45
  SPEAKER_00: We offer them as much help as they need.
• 5:48
  SPEAKER_00: I'm happy to put conditions on for the lawyers or give them the opportunity to run things past their lawyer if they have a lawyer already or suggest lawyers.
• 5:57
  SPEAKER_00: But yeah, it's just it's a case of being as transparent as possible with everyone to make it fair.
• 6:02
  SPEAKER_02: Yep.
• 6:03
  SPEAKER_02: And look, at the end of the day, I think a multier offer has its own place as well, like for the vendors, because at the end of the day, you are working for the vendors and it's the best outcome for them.
• 6:12
  SPEAKER_02: Like if I was selling a house, I want to have a multier offer.
• 6:15
  SPEAKER_02: Yeah, I want to have people competing for that property, going, Oh, we want this, but then if this one falls over because of whatever reasons, yes, finance, builders' report, whatever, then we've got another offer to go back to.
• 6:26
  SPEAKER_00: Yes, it's literally our job is to sell the house.
• 6:29
  SPEAKER_00: I mean, we can't control whether the house sells, we're not that powerful, but we have to do the work to sell the house.
• 6:34
  SPEAKER_00: Like we had one recently where we were negotiating with a buyer.
• 6:38
  SPEAKER_00: The amount of money they were offering wasn't quite where the vendor wanted.
• 6:43
  SPEAKER_00: So it was taking a while.
• 6:44
  SPEAKER_00: In the meantime, we were still running open homes, private viewings.
• 6:48
  SPEAKER_00: She'd put a price on because we'd run the tender campaign and we hadn't kind of got to the price that she wanted.
• 6:54
  SPEAKER_00: And she needed a certain amount because she was moving into a retirement village.
• 6:59
  SPEAKER_00: So all of a sudden, we got somebody else saying that they wanted to make an offer.
• 7:05
  SPEAKER_00: We called for interest and there were two.
• 7:07
  SPEAKER_00: So we had to interrupt proceedings.
• 7:09
  SPEAKER_00: This is not very common, but it is something you can do.
• 7:13
  SPEAKER_00: If the offer isn't signed and agreed upon and we get other interest, we are allowed to interrupt proceedings as long as we're transparent with the person we're negotiating with.
• 7:22
  SPEAKER_00: Everybody had to sign a multi-offer to acknowledge that they understood this and that they'd had a chance to conceive to seek legal advice.
• 7:29
  SPEAKER_00: And then we presented the other offers to the homeowner, and she actually chose one of the other offers, but it was conditional.
• 7:37
  SPEAKER_00: And she said, Cool, I can stop open homes.
• 7:40
  SPEAKER_00: And we were like, Well, you can stop them, but it's best practice to continue.
• 7:45
  SPEAKER_00: And she was like, Okay, I trust you, you know, I'll continue with open homes.
• 7:48
  SPEAKER_00: And we were like, Yeah, because what if something happens with those conditions and the offer doesn't go through?
• 7:54
  SPEAKER_00: So she was like, Okay, fine.
• 7:56
  SPEAKER_00: So we carried on with open homes, and something did happen with that offer.
• 8:01
  SPEAKER_00: The person decided not to proceed, and that was fine.
• 8:04
  SPEAKER_00: We just said to the person, hey, look, you just need to tell us via your lawyer because it had been accepted.
• 8:10
  SPEAKER_00: Just get your lawyer to write an email to the vendor's lawyer saying, We're not proceeding.
• 8:14
  SPEAKER_00: And that was fine.
• 8:15
  SPEAKER_00: It that that offer finished.
• 8:17
  SPEAKER_00: And in the meantime, we'd been running open homes.
• 8:19
  SPEAKER_00: As you can see, there's a lot of work behind the scenes, you know, even once an offer is accepted.
• 8:24
  SPEAKER_00: And we got another offer.
• 8:26
  SPEAKER_00: And these people had tradies in their family, they were really clued up on what is a house constructed of, how is it put together, how can it be repaired and fixed?
• 8:37
  SPEAKER_00: And there was a bit of maintenance that needed to be done on this house, not excessive from what we could see, but a little bit to do.
• 8:45
  SPEAKER_00: And these people didn't care about that because they were like, we've got people for this, we've got a family supporting us, we've got a really good understanding of the construction of a house.
• 8:54
  SPEAKER_00: So, yeah, so their offer went onto the table.
• 8:57
  SPEAKER_00: The vendor in the meantime is sitting there going, Oh my goodness, what is going on?
• 9:01
  SPEAKER_00: It was like a roller coaster for her.
• 9:03
  SPEAKER_00: And we we try and reduce the stress of everybody possible, but at the end of the day, we have to keep going until that offer goes unconditional.
• 9:11
  SPEAKER_02: Yeah.
• 9:12
  SPEAKER_00: And they did go unconditional.
• 9:14
  SPEAKER_00: And yeah, it's it's the best story ever.
• 9:16
  SPEAKER_00: The vendor, when she met the buyers, they wanted to come round and take a selfie with the sold sign.
• 9:22
  SPEAKER_00: She had a bottle of bubbly chilling in the fridge.
• 9:24
  SPEAKER_00: And it was just like absolutely beautiful the way that she met them, and she was so grateful to them because then she could confirm on her next place.
• 9:33
  SPEAKER_00: They were excited to get into their first home and like start making it their own.
• 9:37
  SPEAKER_00: It was like, oh, love is in the air.
• 9:41
  SPEAKER_00: Do you like that?
• 9:43
  SPEAKER_00: I love that.
• 9:43
  SPEAKER_01: I was like, Did you just pull that lava?
• 9:45
  SPEAKER_00: I totally I planned that.
• 9:47
  SPEAKER_02: That's beautiful, and I think that's that you also answered a very important question that I see being asked as well, where people go, Hey, I put an offer, I'm currently, you know, going through my due diligence, but how come the real estate agent is still advertising the property?
• 10:01
  SPEAKER_02: How come they're still holding open homes?
• 10:04
  SPEAKER_02: And you've just answered that, you've just nailed it.
• 10:06
  SPEAKER_02: It's for that same reason, you know.
• 10:08
  SPEAKER_02: Yeah, whatever due diligence you're going through, you may not like that property, you may pull out.
• 10:14
  SPEAKER_02: And that leaves the buyer, sorry, the vendor, the vendor with a property that they can't sell.
• 10:19
  SPEAKER_02: And and there are multiple reasons why people sell houses, right?
• 10:22
  SPEAKER_02: As you mentioned, there might be someone that's going into retirement village, there might be someone relocating overseas, there might be someone upsizing or downsizing.
• 10:30
  SPEAKER_02: So there's a lot of moving parts.
• 10:32
  SPEAKER_02: So it's not like we're selling the house for the fun of it.
• 10:35
  SPEAKER_00: No, definitely not.
• 10:36
  SPEAKER_00: And you don't want to lose momentum in your campaign either, because then the buyers will come through and go, Why has it been sitting on the house on the market for six months?
• 10:44
  SPEAKER_00: And and it's like, oh, well, that that is what would happen if we stopped marketing the house until the due diligence has been done.
• 10:51
  SPEAKER_00: And I mean, George and I, we encourage people to do due diligence.
• 10:54
  SPEAKER_00: We say to them, if they don't know what conditions to put on, we say, phone Zepronesso and ask her what conditions we should put on, or whoever their mortgage advisor is.
• 11:03
  SPEAKER_01: But you know, yeah, finance is a big one for us, right?
• 11:06
  SPEAKER_01: That's the one I'm responsible for.
• 11:08
  SPEAKER_00: That's right.
• 11:08
  SPEAKER_00: Or talk to your lawyer or you know, get advice on it.
• 11:11
  SPEAKER_00: We also suggest commonly used ones.
• 11:14
  SPEAKER_00: So, like, is are you using KiwiSaver?
• 11:16
  SPEAKER_00: Do you need finance?
• 11:17
  SPEAKER_00: Do you want a builder's report?
• 11:19
  SPEAKER_00: Would you like to order your own limb?
• 11:21
  SPEAKER_00: Would you like your lawyer to check the contract?
• 11:23
  SPEAKER_00: We recommend that the lawyer checks the contract, you know, especially with a cross lease, because we sell a lot of cross leases to first home buyers.
• 11:31
  SPEAKER_02: That's another episode in itself.
• 11:32
  SPEAKER_00: Yeah, we can record that.
• 11:33
  SPEAKER_00: Okay.
• 11:34
  SPEAKER_02: Well, thank you, Megan.
• 11:35
  SPEAKER_02: Lovely to have you here today.
• 11:37
  SPEAKER_02: And I look forward to having you again.
• 11:39
  SPEAKER_02: Thank you.
• 11:39
  SPEAKER_02: Bye.