How to spot an under-quoter!

Discussion in 'The Buying & Selling Process' started by Jacque, 20th Jan, 2016.

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  1. joshrowe

    joshrowe Member

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    Spot on Jacque!

    Improved transparency of real estate information will happen. We have already seen the disruption of other industries using Internet technologies. Real estate is next.

    McGrath has threatened to sue realAs for defamation, for publishing a leaderboard of the most inaccurate agents, here was their response: McGrath Estate Agents threaten realAs with defamation lawsuit

    Geoff Lucas, chief operating officer of McGrath Estate Agents said: "As we have stated, the suggestion by realAs that our agents are unscrupulous and intentionally bait homebuyers with unrealistic prices to create a sense of demand, is unacceptable to us.

    "We are offended by that suggestion and as a company take great pride in our reputation both within the industry and with our clients who are selling and buying property. As a consequence we are considering our legal position."
    McGrath didn't take further action on their baseless legal threat.
     
  2. Bayview

    Bayview Well-Known Member

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    Yeah; agree - of course they'll say that; takes the blame off them if it's wrong by miles.

    But think about all of us here who have a bit of interest in an area; after not too much research, you can work out reasonably accurately what a property is likely to be worth; based on what's sold not too long ago and in which streets etc.

    Now apply that same research and area knowledge to an r/e who does this sort of thing all day long, week in and week out. ...they know what a house is likely to sell for - and if they don't they are probably hopeless.

    Given; in a super-hot market; they cannot predict what an emotional buyer might pay for any house, but they can certainly start with what the similar recent sales figures were, and apply that to the one that is up for sale right now.

    Unfortunately; we have made our bed and now have to sleep in it - the demand for inner-city housing has been so strong over many years that it is a monty to sell them that way.

    The agents also have managed to condition folks in those areas over many decades that this is the best way to go.
     
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  3. KayTea

    KayTea Well-Known Member

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    I'm with you on that one, @Azazel. I hate it when there is absolutely no indication of price on an advertisement, and I don't call either.
     
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  4. citystar

    citystar Well-Known Member

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    I really dislike the properties that have no price listed. Surely if you are selling your home, often your bigger asset, you have some kind of vague idea what you would accept for it. This is where PriceFinder and RPData are such useful tools for investors so we can see what the vendors paid and judge it's value based on recent-comparable sales in the area. I am a stubborn guy and generally ignore listing with no price however if I see a good opportunity I will bite the bullet and investigate.
     
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  5. Scott No Mates

    Scott No Mates Well-Known Member

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    If not putting a price on the advert disenfranchises the investor and buyers agents, then the strategy is working.

    Why waste time with tyre kickers who know what they or their clients are prepared to pay without the emotional attachment which drives bidding wars both at private treaty and auction?

    This methodology will drive OO property prices upwards due to preying on the less educated in the market.
     
  6. tilt10

    tilt10 Well-Known Member

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    Really interesting subject.
    What the hell was the vendor doing allowing an agent to put offers over 950 when they wanted 1.2mil.
    I thought that this new legislation was bought in by agents to give them more vendor crunching room downwards.

    I thought offers above actually protected from unscrupulous agents vendor crunching.
    There is so much info out there now that all sellers can put an accurate bottom line on their property.
    This protects them and they might get more.
    Why the hell do most people want agents anyway.
    Sell your home on realestate.com.au through DIYsalesandleasing for a couple of hundred bucks.
    Get a large number of photos up and they send you the leads. Easy. Don't pay commission.
    If you do want to use an agent never pay more than 20K

    It ain't rocket science. weeks .
     
  7. tilt10

    tilt10 Well-Known Member

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    What about minimum offer . Is that allowed in NSW.?
    If you sell your house yourself you can put anything you like
     
  8. Scott No Mates

    Scott No Mates Well-Known Member

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    Exactly @tilt10 - not restricted by the PSBAA NSW
     
  9. SerenityNow

    SerenityNow Well-Known Member

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    As far as I know, REA's often claim that the vendor raised their reserve on auction day... (and I've seen vendors actually do this)
     
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  10. Mick Butterfield

    Mick Butterfield Well-Known Member

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    I am a REA and refuse to market with anything but an asking price. I feel that all the other gimmicky price stratergies and tenders etc. put off buyers and allow incompetent agents to get away with not putting a proper price on a property. Any agent worth their fee should at a minimum be able to value a property accurately.
    Mick
     
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  11. tilt10

    tilt10 Well-Known Member

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    I will ask again. Can you sell your house in NSW with say "minimum offer 1 mill".

    Does the new law prohibit that
     
  12. Mick Butterfield

    Mick Butterfield Well-Known Member

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    From the NSW Fair Tading;
    • clearer rules for agents. A key requirement is that agents must not give consumers understated or vague property prices (eg. promoting a property price as ‘offers above $450,000’)
     
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  13. Azazel

    Azazel Well-Known Member

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    Not sure what the difference is if you're selling it yourself.
    Might have some issues with getting it advertised.
     
  14. Bayview

    Bayview Well-Known Member

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    But isn't us greedy investors who are pushing up the prices? :p
     
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  15. joshrowe

    joshrowe Member

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    That excuse works once, but when some real estate agents inaccurately quote prices month-after-month it suggests that it's not the vendor which is at fault: McGrath Agents Dominate Inaccurate List, VIC Worst State
     
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  16. Esh

    Esh Well-Known Member

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    I don't know if there is a rule about that, that sounds to be quite transparent.

    The biggest no no is offers/guide above/over. No plus signs no arrows. Nothing that means over. For auctions there can be either bidders guide or buyers guide.

    Buyers also have the right to ask the agent what they put on their sales agreement regarding their thought on price. This is the agents view on the value not the owner's so don't get this mixed up. The figure the agent puts down needs to be within a range of 10% in addition if there isn't comparable properties there needs to be file notes on how they came up with the figure
     
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  17. Jacque

    Jacque Jacque Parker Premium Member

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    Hi Tilt

    Given the legislation is very new I expect many agents will try to be "creative" with their language to work a way around terminology. However, whilst the new Act is not completely word-specific in its capture it does nonetheless state in Section 73 (2) “A real estate agent must not publish or cause to be published an advertisement in relation to the sale of residential property that includes the phrase “offers above” or “offer over” (or similar symbols or words in any language) a specified selling price or price range…..”.

    In my view (and I know those of executive REINSW staff who agree) “Minimum offer” lacks the certainty that the Act is trying to achieve so it wouldn't be acceptable. Not only would it not be in the spirit of the legislation but buyers would quickly view it for what it is. As @joshrowe and @Mick Butterfield rightly point out, any sales agent worth their salt should be able to appraise a property accurately and within 10% shouldn't be a stretch. If they're really unsure, then advertise with no price guide and auction it instead.

    As an aside, I have been asked back to Sky News TV (Foxtel Channel 602) Jan 30th to chat about this very hot topic so watch out for my interview then - should be before 11am sometime.
     
  18. AndrewTDP

    AndrewTDP Well-Known Member

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    What about properties that are offered as "preview" without any price guide?
     
  19. Propertunity

    Propertunity Well-Known Member

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    That's fine.
    They are not quoting anything, but when questioned will probably say they are "waiting to get feedback from the market", which is also fine as far as compliance with underquoting is concerned.
    We will likely see more properties advertised without a price (which really annoys the general public). I suppose I should not complain as it might mean more work for us as Buyers Agents.:rolleyes:
     
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  20. tilt10

    tilt10 Well-Known Member

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    I don't want to be negative Mick but most agents in the city try to sell off the bottom or lower trying to crunch the vendor. They don't sell at asking price because their opposition is usually trying to sell at bottom line or lower as well. They just want a sale . Not the best price.
    I have always felt that offers above protected the vendor
     

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