Why Do Some Agents Sell Properties Without Advising Interested Buyers?

In the real estate industry, communication is key. Most agents go above and beyond to ensure that they keep interested buyers informed about the status of a property. However, there are occasions when this communication breaks down, leaving potential buyers in the dark. Let’s explore a recent case study that sheds light on why this happens.


Case Study: Missed Opportunity

Our clients inspected a property on a Tuesday and promptly showed interest to the agents. They requested the Section 32 and Contract of Sale to get reviewed by their lawyers and informed us as their buyer agents about their interest. We immediately began due diligence and emailed the agents to advise them of our clients’ interest the day after the inspection, to which they responded.

However, 48 hours later, when we made contact to arrange another inspection, we were informed that the property had been sold. There was no phone call, text message, or email to either our clients or us. This left our clients feeling frustrated and disappointed.


Common Reasons for This Breakdown

While most agents handle the sales process professionally, ensuring they haven’t overlooked any interested parties, there are a few reasons why communication may fail:

1. Vendor’s Specific Instructions: Sometimes, vendors instruct the agent to sell the property to a particular buyer without reverting to other interested parties. Although rare, this situation can occur, leaving other potential buyers out of the loop.

2. Extended Time on Market: In our case study, the property had passed in at auction and remained on the market for an additional 60 days. Sometimes, agents, eager to close a deal after a prolonged period, might jump at the first opportunity to sell, even if it means bypassing other interested buyers who might offer more.

3. Agent’s Self-Interest: Occasionally, an agent’s motives might influence the decision. For instance, if the buyer has a “trade-in” property, meaning they have a house to sell as well, the agent might prioritise this buyer to secure a double commission, thereby neglecting the best interests of the vendor.

4. Lack of Process and Best Practices: Sometimes, it simply comes down to a lack of proper process and best practices. Poor communication protocols and organisational lapses can result in potential buyers being overlooked.

While these instances are frustrating for buyers and potentially costly for vendors, they are the exception rather than the rule. Most agents strive to ensure all interested parties are informed and given an opportunity to make an offer.

However, when these breakdowns do occur, they leave a trail of disappointed buyers and unsuspecting sellers who might miss out on better offers.

It’s crucial for buyers to work with vigilant agents who will follow up diligently and for sellers to ensure their agents are committed to the best practices and ethical standards that serve their best interests.

By doing so, we can minimise these unfortunate occurrences and foster a more transparent and efficient real estate market.


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