Post to SinFongChanRE.wix on 14/12/2017 at 6:11 PM
Commenting on “Melbourne real estate agency cops record $880k underquoting fine”
https://www.domain.com.au/news/underquoting-real-estate-agency-fletcher-and-parker-balwyn-fined-record-880000-in-federal-court-case-20171213-h04ax1/
Underquoting was a real pain for many buyers who spent time and effort getting their finance ready, turned up to an auction full of hope but only to find that their budgeted amount was nowhere near the final bid.
There is no way to estimate the actual worth of a property, even by the most experienced valuer. An agent can only estimate what it is worth based on the sales of comparable properties in recent time. Should someone turn up and want to buy the property desperately, the final price may well exceed the market Value.
When you see a price range being advertised, it has to be no more than 10% difference between the lower and upper prices. It was a common practice for some unscrupulous agents to quote the price range below the market value. The intention was to attract more buyers to visit the property they might otherwise not be interested in.
The unfortunate victims became the pawns helping the agents to generate a competitive atmosphere at the auction, and excite those with deeper pockets to bid the price higher.
It was also a common practice to quote a property to be of value of x-dollars plus. I had challenged agents before offering x dollars and 5 cents to buy the advertised property. When declined, I asked for the reason, and wanted to know under what condition would x dollars and 5 cents be accepted. I could not take the matter further, because I was not a genuine buyer willing to pay x dollars and 5 cents for the property. I was also very green in the real estate game then.
When you make a genuine offer on a property next time, do note down the conversation and any exchanges with the agent or agent’s representative. You may not be allowed to photograph, record or video the proceeding without the permission of all participants. Don’t be afraid to alert them in a nice way what you intend to do.
If your offer is declined, you are entitled to ask for a reason. You may even ask point blank what figure and condition the owner really has in mind.
If you come across unethical practices, whether it is in the Real Estate industry or any industry, do not be afraid to speak out. Just a word of warning, do it the right way; arrange a meeting with owner of the business or lodge your formal complaint to the Consumer Affairs Victoria.
Thank you for reading.
Commenting on “Melbourne real estate agency cops record $880k underquoting fine”
https://www.domain.com.au/news/underquoting-real-estate-agency-fletcher-and-parker-balwyn-fined-record-880000-in-federal-court-case-20171213-h04ax1/
Underquoting was a real pain for many buyers who spent time and effort getting their finance ready, turned up to an auction full of hope but only to find that their budgeted amount was nowhere near the final bid.
There is no way to estimate the actual worth of a property, even by the most experienced valuer. An agent can only estimate what it is worth based on the sales of comparable properties in recent time. Should someone turn up and want to buy the property desperately, the final price may well exceed the market Value.
When you see a price range being advertised, it has to be no more than 10% difference between the lower and upper prices. It was a common practice for some unscrupulous agents to quote the price range below the market value. The intention was to attract more buyers to visit the property they might otherwise not be interested in.
The unfortunate victims became the pawns helping the agents to generate a competitive atmosphere at the auction, and excite those with deeper pockets to bid the price higher.
It was also a common practice to quote a property to be of value of x-dollars plus. I had challenged agents before offering x dollars and 5 cents to buy the advertised property. When declined, I asked for the reason, and wanted to know under what condition would x dollars and 5 cents be accepted. I could not take the matter further, because I was not a genuine buyer willing to pay x dollars and 5 cents for the property. I was also very green in the real estate game then.
When you make a genuine offer on a property next time, do note down the conversation and any exchanges with the agent or agent’s representative. You may not be allowed to photograph, record or video the proceeding without the permission of all participants. Don’t be afraid to alert them in a nice way what you intend to do.
If your offer is declined, you are entitled to ask for a reason. You may even ask point blank what figure and condition the owner really has in mind.
If you come across unethical practices, whether it is in the Real Estate industry or any industry, do not be afraid to speak out. Just a word of warning, do it the right way; arrange a meeting with owner of the business or lodge your formal complaint to the Consumer Affairs Victoria.
Thank you for reading.
