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Bait pricing

Discussion in 'General Property Chat' started by Gockie, 25th Sep, 2016.

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  1. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    Just thought i'd start a thread... here's a listing I'd say is bait pricing. I know the area and there's no way it would have been a 1.35m sale based on comparables.
    Note, Bait pricing is illegal in NSW.

    Screenshot_2016-09-25-14-13-13.png
     
  2. D.T.

    D.T. Adelaide Property Manager Business Member

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    Its illegal Australia wide and is not real estate specific. The ACCC monitors this.
     
  3. Simon Hampel

    Simon Hampel Founder Staff Member

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    [​IMG]

    :eek:
     
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  4. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    If that's the case I really think some Victorian agents could be flounting the law. If someone quotes low - mid 5's and it goes mid 6's then it starts to waste peoples time.... I guess how much under quoting is tolerable?
     
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  5. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    That's completely illegal! Better report it. :):p
     
  6. mikey7

    mikey7 Well-Known Member

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    I reckon its a developer thats just come in and bought it. They are smashing the Epping area at the moment to build apartments.
    Theres was one ages ago on Carlingofrd road that was advertised at 1.3mil. When he got wind of his neighbours selling to developers, ended up getting close to 3mil. Others are getting 2.4mil+
     
  7. Nemo30

    Nemo30 Well-Known Member

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    When i sold my house recently the agent told me that i could advertise within 10% of what i would accept, however if someone offered that amount and i said no, then i couldn't advertise at that price any longer.
     
    Last edited: 25th Sep, 2016
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  8. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    Still seems wrong though to advertise it at a price when you have no intention to sell it at that price and would refuse an offer to buy at that price.
     
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  9. Nemo30

    Nemo30 Well-Known Member

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    But who is to say i wont sell at that price...
     
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  10. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    If it's to a developer then that's really sad (that is such a nice street and this is a lovely old home).
    Secondly if it was to a developer it should have been a lot more than 1.9mil. I doubt it was to a developer.
     
  11. Scott No Mates

    Scott No Mates Well-Known Member

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    @Simon Hampel - got me. Hook line & stinker ;)
     
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  12. Connor

    Connor Well-Known Member

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    Bait pricing is still ripe with many builders offering house and land packages also..
     
  13. Jacque

    Jacque Buyers Agent and Bookworm, Sydney Business Member

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    Sadly under quoting still going on with agencies here in Sydney @Gockie and really the only way they will be forced to clean up their game is to report them.... if only more people would a few hefty fines would wear them down.
     
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  14. jins13

    jins13 Well-Known Member

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    Just not good enough that some of these clowns get away with this illegal practices.
     
  15. Big Will

    Big Will Well-Known Member

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    Sorry but with all the free valuations out there you only need to spend 2 minutes doing some sort of DD.

    Re.com, domain, onthehouse, homehero + major banks all offer a price guide for prospective purchasers. Then you have the paid services as well.

    Not that these can be accurate but it would eliminate the major underquoters. You still should/need to look at comparable sales.
     
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  16. Propagate

    Propagate Well-Known Member

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    The last one I saw that really **** me was an auction where the "suggest range" advertised was something like $1.2-$1.4m, (don't quote me, I'm going from memory). It was passed in at something along the lines of $1.5m due not not meeting the reserve.

    I don't understand how you are allowed to set your reserve higher that the high end of your advertised range? If it goes nuts and you sell for way over then kind of fair enough, but you shouldn't be allowed to pass in unsold if the legitimate bidding has gone over the high end of the advertised range. That's about as falsely advertised as you can get surely?
     
  17. Big Will

    Big Will Well-Known Member

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    It is a good indication but also you cant force someone to sell you something and there also could be more to the story.

    They might have gone to an auction earlier that day and saw a house sell for 2M and they feel their house is worth 1.6M now in the current market. Or there was someone who wanted to put in an offer of 1.6M but needed STF and cant bid at auction for this reason.
     
  18. mikey7

    mikey7 Well-Known Member

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    Why's that? A developer offered me $1.8mil for my place. I was stoked to hear that price. Some of my neighbours were ready to sign on the dotted line.
    Then I did some research, went back and got offered $2.5mil with no hesitation.

    Developers will pay as little as they possible can. Less payment = bigger profit. They aren't going to straight out offer you $5million when they know the average person will be stoked with $2million for a house that would sell for $1million on the market.

    There are 2 sites I can think of where (for very similar sized high rise development), one site got $17,000/sqm, the other $5,000/sqm.
     
  19. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    That part of Epping the houses would be 1.9m - to home owners. Not developers.
     
  20. mikey7

    mikey7 Well-Known Member

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    Gotcha. That makes sense