Join Australia's most dynamic and respected property investment community

Underquoting reforms in 2016

Discussion in 'The Buying & Selling Process' started by jins13, 27th Dec, 2015.

  1. jins13

    jins13 Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    943
    Location:
    Sydney
    Bentley likes this.
  2. MattA

    MattA Well-Known Member

    Joined:
    14th Oct, 2015
    Posts:
    54
    Location:
    Central Coast NSW
    So, in reality, will this simply lead to even more properties being advertised without a price ?
     
  3. Tranquilo

    Tranquilo Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    342
    Location:
    Mascot
    They should make a law all properties to be advertised with a price
     
    Johnny Cashflow likes this.
  4. MattA

    MattA Well-Known Member

    Joined:
    14th Oct, 2015
    Posts:
    54
    Location:
    Central Coast NSW
    Yeah, it's an interesting argument.

    As a buyer, it is way easier to do my research etc if a clear price is attached...

    As a vendor, why shouldn't I be able to advertise and sell my property in whatever way I choose...
     
    Tranquilo likes this.
  5. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,558
    Location:
    Sydney or NSW or Australia
    Regardless of how accurate the indicated sales price?
     
  6. Gockie

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

    Joined:
    18th Jun, 2015
    Posts:
    4,922
    Location:
    Sydney
    Because people massively underquote. My sister listed theirs for 640k but knew they'd get well over 7. They ended up with 770k.
    Another friend put her inner west unit for auction with a price something like over 350k but really they wouldnt accept less than mid 4's, she told me herself. The agent was telling them to advertise with the very low price. It easily sold at auction for much more.
    Now its cooling in Sydney, I tend to think the ban on "offers over" is not necessary and me as a seller I'd want to be able to use it. But being 100k or more off... is ridiculous. I think perhaps to be transparent the price shown should reflect what you as the vendor agree to in the agency agreement.
     
    Adele and monalisa like this.
  7. Tranquilo

    Tranquilo Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    342
    Location:
    Mascot
    Auction didn't game, but forsale price probably harder to underquote.
     
  8. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,558
    Location:
    Sydney or NSW or Australia
    A $100k range in a sub-$500k market is not acceptable but when talking> $2m that's your stamp duty.

    The range shown and the comparables used should be reviewed by OFT post sale as proof of honorable conduct.
     
  9. Gockie

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

    Joined:
    18th Jun, 2015
    Posts:
    4,922
    Location:
    Sydney
    Agree with this. I should have mentioned relative to total price.
    A colleague also was looking to buy a few months ago. Her budget I think started at 650k. She was looking at properties listed at 650k.
    No chance. She was always getting outpriced, and these were private treaty sales, and often they were selling for the 750k mark.

    Eventually she increased her budget about 100k and ended up buying a few suburbs further out than planned.
    That's what happened.... hot market....

    Anyway... on a different note... I think that not being able to show a guide price for Brisbane auctions is pretty silly, but there aren't that many auctions there though. Makes it more work all round.
     
    Leo2413 likes this.
  10. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,558
    Location:
    Sydney or NSW or Australia
    It does make it a little difficult trying to sell a product without mentioning price especially when you're trying to convince someone to spend multiples of $100 k
     
    Leo2413 likes this.
  11. Leo2413

    Leo2413 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    5,755
    Location:
    Sydney
    Personally i have never really been too worried about underquoting. I dont really believe anything an agent tells me anyway. After i do all my research I pretty much have a good idea the value of the property and what i am willing to pay for it. Whenever i hear a quote from an agent that is ridiculously low i just laugh to myself and think 'good on him for trying with me'. Besides, if i was selling a property, i would want the agent to underquote a bit in order to drag in more people, build up the atmosphere on the day and hopefully get the bidders to bid as emotionally as possible. Just my personal opinion.
     
    DanW and Hodge like this.
  12. Gockie

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

    Joined:
    18th Jun, 2015
    Posts:
    4,922
    Location:
    Sydney
    I thought the one we just exchanged on on Tuesday was clearly going to be a case of underquoting... but the vendor accepted our offer on it. The price all depends on the market! :)
     
    Leo2413 likes this.
  13. Leo2413

    Leo2413 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    5,755
    Location:
    Sydney
    I agree with you. The market largely will dictate what is possible and not possble for an investor to do. But there are those times..whether its due to the circumstances of the vendor and/or an incompetent agent, where a buyer sneaks in and gets a steal, even though the market dictates the vendor could have gotten more.
     
  14. Gockie

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

    Joined:
    18th Jun, 2015
    Posts:
    4,922
    Location:
    Sydney
    oh yeah... this West Ryde property I picked up was a bargain ... bad agent, they specialise in rentals not sales, it had pretty bad photos on the internet and the vendor had no idea of the market as she lived interstate, the Brisbane one... again I'd say a bad agent (fairly new listing but the agency didn't do an open that weekend cause both agents were on holidays :eek:).
    There are good buys out there...
     
  15. Leo2413

    Leo2413 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    5,755
    Location:
    Sydney
    Very nice pick up @Gockie! Its unbelievable but it happens.

    I have seen now twice in the same building over the last 18 months, out of town agents in a great beach area advertise a 2 bedroom appartment and the marketing material had NO VIEW OR MENTION showing the harbour bridge, yet from the main bedroom there was an almost perfect view!!! Un-freakin-believable.
     
    Gockie likes this.
  16. Johnny Cashflow

    Johnny Cashflow Well-Known Member

    Joined:
    29th Jun, 2015
    Posts:
    739
    Location:
    SA
    All properties should have to be advertised with a floor plan with the measurements and no photo touch ups
     
    joel likes this.
  17. balwoges

    balwoges Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    187
    Location:
    Lake Macquarie
    Dream on :D
     
    Perthguy likes this.
  18. Johnny Cashflow

    Johnny Cashflow Well-Known Member

    Joined:
    29th Jun, 2015
    Posts:
    739
    Location:
    SA
    Yea real estate agents would be crying if that happened lol
     
  19. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,558
    Location:
    Sydney or NSW or Australia
    ...and a copy of any transcript of all discussions between agent and vendor too.
     
  20. Gockie

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

    Joined:
    18th Jun, 2015
    Posts:
    4,922
    Location:
    Sydney
    Now this was interesting....

    The place we are buying, the agent had left the paper list of attendees at the front door on a bench. (I even heard her say to one group to even write their own details on the page!!)

    Anyway, I noticed towards the end of the
    open home I saw she (or someone from the agency) had written notes all over the open house attendance listing. We saw s/he wrote on it... it said it was our third visit, pending finance, but I saw s/he wrote on the next group of people, 3rd visit, offer rejected (my partner reckons he recognised them from a previous open). Unfortunately for us there was no mention of what that offer was so I don't know if it was 100k, 50k or something else less. And then the page went on to say 3 outright nos (ie. Not buyers) for the next few attendees.
    Really shows where you stand!

    Gave me confidence.... but then again, if I was in the other interested party and saw that we were seeking finance... they could have thought about increasing their offer. Which would have been very bad for us.

    Anyway, we really got moving after that and the vendor accepted our offer... exchanged on the Tuesday 3 days before Christmas...I suppose the other lower offer could have conditioned the vendors to think the market is really cold... I know if I was in their shoes I'd be thinking it's better to accept a decent offer pre Christmas rather than a possibly better (but no guarantees) offer post Christmas... a bird in the hand is better than 2 in the bush... anyway long story short... i'm stoked. :D

    Leaving that list though in full view of everybody.... not sure if it was smart or dumb... I'll say dumb... there was even bright highlighting on the page everywhere noting the comments... I couldn't help but see it...
     
    Adele likes this.