Seekology

I came across this article today: Linky

Is this the disrupter in the BA industry?

How do other BA's feel about this sort of 'free service to investors'?

@JacM @Jacque @Andrew Allen

 

REBAA has posted a response and a warning: Warning: "Free" buyer's agents for property investors - REBAA

 

I doubt it can help the part that BA's actually do - which is stick their noses in the market sniffing out deals that might not otherwise come up, assess risks based on macro and micro location info, negotiate favorable deals in terms of either price or conditions.

 

Hardly . These guys are spruikers. They get paid by either the vendor or the developer when the client (buyer) they claim to be working for, buys what they recommend. Surely their loyalty has to be with the people who are paying them?

Additionally, they are taking a retainer from the buyer and a commission from the seller - which is double-dipping and not allowed under the Act. (They say they refund the retainer once a purchase is made, which is how they seem to be skirting around this requirement).

 

Exactly! I think it just muddies the waters and goes to confusing the general public on what a truly independent BA actually does.

 

They're not really offering the service for free as @Propertunity rightfully points out. They wouldn't be working for free. The article says :

"
For an established property, Seekology will earn an industry standard referral commission from the seller or seller’s agent.

For new properties, the developer or marketing agent pays for the Seekology service.

A range of additional services are also offered for a temporary refundable engagement fee, including property education and management, finance, structure and tax planning, and resale of property.
"

So. They're getting a referral commission from the seller's side which means they are indeed getting paid, and likely more than a standard BA would be paid. And this cost would be built into the price of the property - so the buyer will be paying one way or another. They also are not being impartial to the buyer, because it is actually the seller that is paying them (in a roundabout sort of way). I wonder if the additional services referred to stitch people up to having to allow the firm to control all aspects of their finances.

On a more interesting note, I don't know why I never noticed previously that I could select different font colours in my posts!

 

Seekology are clearly in breach of their fiduciary responsibility to the buyer and have a gall referring to themselves as "independent and unbiased".... I could go on but my comments (amongst others) underneath their press release on the REB site here say it all Revolutionary property investment service launched - Real Estate Business

 

I would hope for the sake of prospective customers that they do a bit of a hunt around for genuine reviews / testimonials before doing anything.

 

“100% independent and unbiased.”

Plus it's FREE.

How could I lose?

As my Daddy said "You get what you pay for ...".

 

Ha! It's hardly revolutionary - can't see how that's any different from any other property 'group/spruiker' who get paid by the developer.

I can literally do the exact same thing, I have access to heaps of developments - maybe I'll start calling myself a buyers agent too. A revolutionary one.
*Must point out that I never sell properties to my clients, as much as the developers would like me too

 

Just so long as you pick from this list of 10 properties available from our development partners

 

@DaveM - not quite KFC Strategy but will Oporto do?

 

Infidel

 

But they must be awesome @DaveM as they're only considering the top 1% of properties in the country What a farce!

I note now they've changed several pages on their website.... media and REBAA have been onto them to point out a few discrepancies between their claims and what is legal according to both the PSBAA and ACL. So much for "disrupting" the industry- just another wolf in sheep's clothing....

 

REBAA chief slams ‘free’ buyer’s agent service

Association chief slams ‘free’ buyer’s agent service - Real Estate Business

 

I'm glad that legitimate BAs are putting in their 2 cents - what a farce to be calling themselves a BA.

Are they members of REBAA? (Not compulsory).

 

They cannot be members of REBAA if they also sell property.

 

I am glad that REBAA has stepped in to reign them in. REBAA wouldn't earn a penny from doing so of course, but hopefully this step will protect some potential clients that otherwise would have blindly gone into a transaction.

 

@JacM - not so much as REBAA earning fees from them but standing up to protect the interests of their members.

The ABN shows business names o "off the plan only" & "townhouses only" - big red flags....

 

@Scott No Mates yep that's what I meant.