Buying IP's for the sake of it

I would say many agent's primary goal is to make as much and as fast a commission as possible. They would sacrifice some of the amount if it meant to secure a deal now. they don't care if your 'conning' them, just so long as the deal goes through asap and they get their commission. They don't really care about the vendor or the buyer. If the buyer is offering a lower amount then its worth but can buy now with no finance issues etc, then to an agent this is very enticing. They don't care to wait another 4 weeks to get more fish with a better offer. Especially if its not a boom market. (most markets are not boom markets), so this means it happens a lot of the time. My personal experience and experience of colleagues easily confirms my beliefs.

That's just one of the reasons why investors can manipulate a purchase to buy under market value. It's poker at high stakes. The smarter, better strategized and experienced investors usually make a good gain right from the beginning of the property acquisition. I see this time and time again. It buffers them from some risk, creates instant equity and relies less on short term organic CG. This imo is smart, savvy buying.

 

Yes; plenty of them out there.

From my experience - both as a seller, a buyer (10 properties in all) and working as a real estate agent's representative - the inexperienced ones refer back to their Principal most times, and often the Principal will call a meeting to confer with the noob about their progress and discussions, and step in to guide when required.

Ultimately, the agents don't care how clever the parties think they are - they just try to get the sale, play the various parties off against each other and get 'er done.

 

The house was lived in by a smoker...and dated....but great bones...

First...we just talked about our selves ..you know the stuff that perks an agents interest from a qualification perspective. I told them that I had sold my place in Sydney as I was worried about the market crashing....then I harped on about having my pre-approval having to be done again as the banks had changed the goal posts...then I told him about how slow they were. By simply doing this I had already conditioned him to that I was a qualified buyer.

Next I got my partner who is European to nit pick on every thing..like how gross the colors were ...and that things were dirty. He bought it and said...look you can change this with little cost and then that. We then told him what we were prepared to pay...and he believe it not told us the end price. We could not conceal our glee....without making it looking desperate we promised we would make a decision my the following day....after snaffling Wylie's prospect. We spent the day in and out in the Northern suburbs and then rang the agent to see if he can show us again. We made sure that we told him that we had to head to the airport after we met him. We offered 300k and got it!

Wylie about 10-15k...and yes...my place will look nicer.

 

Yes I believe it, experienced it and seen it many times with colleagues. You hands down certainly beat him at that hand of poker, no pun intended. Well done.

 

Oh, tell me the agent if I can offload mine at 300K i'd be a very happy this year

 

I love telephone numbers...trouble is they are few and far between....you are correct in saying that 8 digits are thrown around...but few actually have this. Now 7 numbers are far more prevalent....

 

Well don7e on your purchase Sash.
Depends a lot on how willing the vendor is to not stuff around. If the vendor would rather have the house sitting around with no buyers than come down to asking price then the agent is no more than ... well ... an agent.
In this case the vendor has to be 'worked' over a period of time in order for them to see the folly of letting the house sit there indefinitely.
And @Darlinghurst Boy I agree that you're better off with a few good properties. However, it depnds what the market is doing at the time, where people are moving, and your entry price point. It would take me a couple of lifetimes or another degree and a youth elixer to not go backwards in Glebe. Would love to have something there though.

 

My fiancee told me we need to buy another one now that we just bought one, because she doesn't like odd numbers.
I'm happy to oblige though.

 

That is pure genius, words to live by

 

Mmmm, I know people who have a few 'good' properties. All loans are IO, heavily negative and investors in their thirties working day jobs and waiting for these to increase in value. Increases in value do occur but take out stamp, LIM and the other costs and the increases can be quite limited and take a long time to occur. In the meantime you're looking at many years of work to hold them. Not always the case as some have found in Sydney. I'm not saying buy lots of cheapies, or the opposite. All comes down to personal strategy. Some cheap properties have the potential to double in value and are positively geared and producing an income from the start. I'm just saying many ways to skin a cat. But yes, agree the couple in your example are asking for disappointment.