Investment Groups

As a person who worked in the wholesale market I'm curious about buyers who go through these guys and are happy that at least $35k to $50k is added to their property prices because of the high commissions paid by the builders?
Has anyone gone through one of these groups then realised they could buy directly from the builder and save a huge amount of money?

 

99.9% of people who buy via these types wouldn't even know about it, the way the builder pays "introducer fees" means they do not need to be disclosed to the buyer. Unlike Real Estate agent fees which you need to be licensed to receive, introducer fees can be paid to anyone who introduces a client to the builder.
The only time they may realise something is up is when the valuations come in $35K - $50K lower but often the vals don't come in low so the buyer never knows.

 

Yes I understand the rules and it's a rort I say.
Years ago I worked for a volume builder and a Chinese group came to them with a house sale and put their hand out for the 33k and the builder outlined it in the contract for the client. Needless to say that builder never got any more jobs from that investment group lol

 

Real estate agents would agree. The difficulty is most of these guys are not traditional real estate agents but accountants/investment advisors/solicitors/property spruilkers with a phone and a business name. I have in my early years attended these events and been horrified at the rubbish they sprout. The pay is extraordinary as the work is unconscionable. As a major property owner I was approached and offered insane prices if I agreed to a 10% sales fee. Because it is a one stop shop for lawyers, property, finance, accounting etc people find it convenient and get suckered into the scheme. I have seen people pay double market value on student accommodation. Then lose half the money they sunk into the scheme over 10 years.
By and large your average Suburban agent is well regulated compared to your Property spruiker who is more akin to “The Wolf of Wall Street”