How do REA sleep at night?

Hi All,

Went to an inspection of a unit in Blackburn South, Melbourne on the weekend. I asked all the normal questions and i got to the $$$ questions, they try and pull the wool over your eyes. (no suprises here)

1. How much? REA says $240,000 + , similar place have sold for $270 - $290k, why do they think they can quote so far under what it will actually go for. I know it is their job to try and pull the wool over your eyes but...............geez

2. How much will it lease for? REA said $250 - $260 a week. Bull!! It would be lucky to get $200 - $210 and the REA knows exactlly what it will lease for, its his job.

So why SO MUCH bulls@*t? I know the answer, to make money.:D

GG
 
GG,

In your specific scenario, if as it seems, you are well versed with comparable sales and rentals, why would you worry about what the REA says. Wasted energy(??)

Sounds like an amateur sales person. You may even have more knowledge than the REA.

James
 
So why SO MUCH bulls@*t? I know the answer, to make money.

GG
__________________
"Greed is good" Gordon Gekko (Wall Street)
"Greed is good" Gordon Gekko (Wall Street)
"Greed is good" Gordon Gekko (Wall Street)


Oh! Gordon, sweetie, spare me the histrionics!

What were you doing there!

Wanting to buy a what? Pardon me? An INVESTMENT PROPERTY??!!!


What for?

TO MAKE MONEY!!!

What is your signature?

GREED IS GOOD!?!

So, please, leave the dramatics for another occasion. If you are so much smarter than the pimply youth politely answering your questions in an Open for Inspection ON THE WEEKEND then you are smart enough to politely and nicely do your own research.

Caveat Emptor. You are not going to rely on any information given by or on behalf of the vendor, so why bother trying to extract that information from the sales rep?

Only done deals are worth knowing about. Sales and rentals which actually exist, and even then they are historic, nothing to do with your value, your purchase, your prospective tenant.

Gordon, to find the bargains remember Abraham Lincoln's famous words:

"You will attract more flies with a teaspoon of honey than you will with a gallon of gall".

Leave your sanctity at home. It is an accessory which is neither fashionable nor necessary.

Happy hunting - and I put the emphasis on 'Happy'

Lotsa love and kisses

Kristine
 
Reality

  • Successfull REA that dont lie agents do exist.
  • Thus proof that REA dont need to lie/misdirect to make a profit.

The neccesity of making profit doesnt explain what a business does nor what a business should be. I would ask each of you to consider your own experiences, ie that most business started with the aim to "make a (fat) profit" usually fail. Where as those started with higher minded objectives frequently prosper. The reason is that a business needs more that the profit motive to survive, a business needs a purpose a higher goal so to speak.

For example a private hospital needs to make a profit to operate, but making a profit doesnt explain the purpose of a private hospital. If you ask those working in a private hospital or private school what their purpose is they wouldn't automatically say to "make a fat profit", the would say to "help people get better, heal the sick", "education of children"


One big problem for the RE industry is the fact that people make so few transactions that "repeat" business is rare. In many businesses 90% of customers are repeaters. Thus for a REA I can assume that because they dont expect repeat business, there is the great temptation to try to get the biggest commission for the least possible work and it doesnt matter if they piss people off doing it.

I have been reviewing the Buyers Agents in Sydney recently, commissions have fallen and I am got some very knowledgable value added answers, all for only 1%, sounds a good deal to me!
 
Gordon,
Just ask yourself one question?,Who is the real estate agent
working for,The Vendor not the buyer,and the prime objective
of any agency is to sell properties,i think there are good real estate sales people out there,if you find one who will listen
to what you require,and does not create a sence of urgency
in her or his sales pitch,and verbal requests by you are dealt with
quickly, and dont try to make rushed decisions..real estae agents
have had a good 3 years the next three may be different..
good luck
willair..
 
*sigh*

I was speaking today to a RE agent. First, he assumed I wanted to sell and asked how much I wanted for it (this is the property manager mind), then he asked for a complete set of keys so he could cut a set for himself.
Then he wanted my address so he coulld send the property management form for my signuture.
This is all becuase I rang him to get his opinion on the rental one of my places would get...
Talk about assumption closes!

Jas
 
Hi Gordon,

In answer to your original question

"How do REA sleep at night?"

After the last few years of boom, probably very well! :D

bye
 
Gordon - it's easy.

Tell him you'll buy it at that price right now, and he can rent it at that price if he will guarantee the rent !!!:D :D :D

Watch him back away real fast :D
 
Originally posted by Bill.L
Hi Gordon,

In answer to your original question

"How do REA sleep at night?"

After the last few years of boom, probably very well! :D

bye

Some of them:

From a Lugwig comic in the Age several years ago
On a huge bed with satin and silk sheets, alongside a woman who's beauty would make you weep with envy.
 
Kristine.. said:
So why SO MUCH bulls@*t? I know the answer, to make money.

GG
__________________
"Greed is good" Gordon Gekko (Wall Street)
"Greed is good" Gordon Gekko (Wall Street)
"Greed is good" Gordon Gekko (Wall Street)


Oh! Gordon, sweetie, spare me the histrionics!

What were you doing there!

Wanting to buy a what? Pardon me? An INVESTMENT PROPERTY??!!!


What for?

TO MAKE MONEY!!!

What is your signature?

GREED IS GOOD!?!

So, please, leave the dramatics for another occasion. If you are so much smarter than the pimply youth politely answering your questions in an Open for Inspection ON THE WEEKEND then you are smart enough to politely and nicely do your own research.

Caveat Emptor. You are not going to rely on any information given by or on behalf of the vendor, so why bother trying to extract that information from the sales rep?

Only done deals are worth knowing about. Sales and rentals which actually exist, and even then they are historic, nothing to do with your value, your purchase, your prospective tenant.

Gordon, to find the bargains remember Abraham Lincoln's famous words:

"You will attract more flies with a teaspoon of honey than you will with a gallon of gall".

Leave your sanctity at home. It is an accessory which is neither fashionable nor necessary.

Happy hunting - and I put the emphasis on 'Happy'

Lotsa love and kisses

Kristine

Kristine,

First of all, i am not your "sweetie"

Second, my signature, is a name, a fictional character, with that character is his quote, "Greed is good"
So, sweetie, please lighten up a bit. :D

"If you are so much smarter than the pimply youth politely answering your questions in an Open for Inspection ON THE WEEKEND then you are smart enough to politely and nicely do your own research.
"

Never said i was smarter and he was a chap of about 55 who had a lot of experience pulling the wool over peoples eyes. If the "law" hadn't of stepped in, REA would still be taking bids from trees :D

It was a simply question but you made it into a slinging match.

So please, lighten up !!

GG
 
Lighten up yourself GG, the continual questioner, with little substance, Kristine has been a valuable contributer here. (I think we've only butted heads once !)
Yourself on the otherhand may well do with another avatar (Mr Magoo ?) :D
astroboy....
 
I am with you G.G. I think integrity will go futher every time than a sweetner in your ear. I have agents that I will not go near for the same reason and others that will have my bussines. I haven't got a problem with greed, but not at any price. Elwyn.D
 
astroboy said:
Lighten up yourself GG, the continual questioner, with little substance, Kristine has been a valuable contributer here. (I think we've only butted heads once !)
Yourself on the otherhand may well do with another avatar (Mr Magoo ?) :D
astroboy....

Astroboy,

It saddens me that that is your view of me. :(

I started this thread because of a REA's total mis-representation of a property i visited last weekend.

I didn't expect to get personally attacked.

Agree or disagree with me but don't attack me personally.

GG
 
That's why we have new laws...

Hi all.

I haven't posted for a while, but couldn't resist repliying to another 'agent bashing' post.

Kristine has it spot on... If you know the numbers, ignore them. Who cares? Life is too short to stress out over agents.

Back to the laws.

February 1 has seen the introduction of new (long overdue) legislation.

I'll do my best to clarify a few points, but forumites in Melbourne should pick up a copy from consumer affairs.

Before we start, you must remember that some agents (cowboys) are resistant to the changes, so don't expect them to undo 20 years of bad habits!

REA's must now provide written analysis of the value that they put on a property. This must be backed up be recent sales and documented. The purpose of the law is to stop agent's from 'buying a listing', or telling the seller a high price in order to get the business.

Once the agent has committed to a figure, they CANNOT quote a figure to buyers which is underneath the lower price in thier range. And the upper price cannot be more than 10% above the lower price.

In the Blackburn instant, if the agent valued the unit from $240,000 to $264,000, then he was doing the right thing as required by law. Had he quoted $230,000 plus, then he was in breach. Likewise, if he valued the unit at $250,000-$275,000 then he was also in breach.

Although similar properties have sold $270-$290,000, the agent may well have put a lower value on it due to the current market conditions.

The alternative is that this particular agent is an a-hole, in which case, you should follow the results, and dob him in! The quicker the industry gets rid of these types, the better for all concerned.

How do you determine this? Easy! If he has quoted $240+ Then the maximum passed in bid by a vendor should be $264,000.

Bear in mind that sellers can still set any reserve they like.

In case you've been asleep over the last 2-3 months, the Melbourne market has hit a wall since the interest rate rises.

The other aspect of the law is in relation to 'dummy' bidding.

Buyers have been complaining about this practice for years. Now that it has been eliminated, they don't bid! Go figure?

I suggest that if you are bidding on a property and it is to be passed in, then make sure that it is your bid, so that you have exclusive negotiation rights.

If it is passed in to a vendor bid, then the agent can negotiate with anyone, and then becomes a 'dutch' auction.

I hope this clarifies the topic somewhat.

And, yes I do sleep well at night (apart from my 6 month old boy waking up).

Regards

Sam Vannutini.
 
I attended an auction last weekend where the quoted price was $300 - $340. The block was an excellent development site and sold for $390k.

The thing that appalled me was the auctioneer opened with a vendors bid of $330k. I don't mind that it went for outside the quoted range, but by opening at the high end of the range it indicated that there was really no chance of purchasing the property within that range.
 
A tricky one PT.

Agents can open the bidding wherever they like as long as it is within the quoted range.

As I said, it will take time to change old habits.

Unless you have inside knowledge of the appraisal, it is difficult to judge.

Agent's have to provide written evidence of how they come to a figure. It may be that strong interest pushed the price well above the reserve.

Once again, if consumers are sick of being ripped off, get familiar with the rules. Contact consumer affairs for a free booklet.
 
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