"I buy houses" signs - what is this about?
- Thread starter neK
- Start date
I've seen these around the northern beaches of Cairns recently. Fluro yellow and attached to trees.
My thinking around it is a bit like the letter box drop. Investors wanting to buy, sometimes in a hot market, and being proactive about it. If someone is wanting to sell and they see the sign up and think they can bypass the agent fees than why not.
Then on the other side I used to see signs (mainly around western suburbs of Melbourne) that had the hand written rent to buy signs for vendor finance.
I find it's usually a good indicator of where a market is.
My thinking around it is a bit like the letter box drop. Investors wanting to buy, sometimes in a hot market, and being proactive about it. If someone is wanting to sell and they see the sign up and think they can bypass the agent fees than why not.
Then on the other side I used to see signs (mainly around western suburbs of Melbourne) that had the hand written rent to buy signs for vendor finance.
I find it's usually a good indicator of where a market is.
It's advertising for vendor finance.
IMO vendor financing is more a business model than an investment. It works well for some but definitely not my cup of tea. If you want to know more take a look at the Vendor Finance Association.
http://vendorfinance.asn.au/
IMO vendor financing is more a business model than an investment. It works well for some but definitely not my cup of tea. If you want to know more take a look at the Vendor Finance Association.
http://vendorfinance.asn.au/
It's just a sign to see if there is anyone would like to sell their house privately without going to an real estate agent.
Some people may turn this into a vendor finance structure, some people would just like to talk to the real seller and buyer rather than an agent standing in the middle.
I found dealing with a real buyer or seller without an agent can sometime achieve a better win-win result for everyone. But not all the time. some people rather to deal with an agent.
There is no right or wrong, I just like to open more opportunity for myself and the seller.
It costs nothing to have a chat, doesn't it
Some people may turn this into a vendor finance structure, some people would just like to talk to the real seller and buyer rather than an agent standing in the middle.
I found dealing with a real buyer or seller without an agent can sometime achieve a better win-win result for everyone. But not all the time. some people rather to deal with an agent.
There is no right or wrong, I just like to open more opportunity for myself and the seller.
It costs nothing to have a chat, doesn't it
I see, so if I was thinking of selling, I could call one of these and they might be able to find me a buyer and I would save commission. Someone doing that would have to do their homework and be pretty confident of the sale price. Well, that said, when I sold my unit last year, a local agent undervalued it by $80k, so dealing with an agent is no guarantee. You still have to do your homework.
I'm actually not that surprised that people are doing this. Three of us tried to buy a commercial property years ago and the agent refused to present our offer to the owner. My business partner told the owner. The owner fired the agent and arranged a meeting with us. The owner was really nice and was keen to sell. We were keen to buy and negotiated a deal direct with the owner in under 10 minutes. Some agents can stand in the way of the deal instead of facilitating it.
Did the agent come back and ask for their commission?,they all title search all the old listings every week..
Nope. The agent didn't facilitate the sale, so didn't deserve the commission. The mechanisms of this was that the owner terminated the agreement. The agreement had a clause with a certain number of days (maybe 30?). The offer and acceptance form was signed by all parties after the 30(?) days had lapsed.
Typically there will be a clause about introducing somebody to a property. If the agent showed somebody a property it's probably fair and possibly legally binding that the agent get some commission if that person buys the property after the agreement period.
Well that didn't happen, so water under the bridge I guess. From the vendor's point of view, the agent blocked a sale instead of facilitating it. So he wasn't going to pay the agent a thing and the agent could sue him for it. I couldn't really understand the agent's attitude of being paid to negotiate a sale and refusing to do so. It just doesn't make any business sense.
it's money for jam. the npv of the commission on the sale is more than double that of its tangible value on the rent roll. agent must have been really competent, not!
Agreed. I have no problem paying a commission to an agent that facilitates a sale.
Many of the signs will say "pay cash" (like I'm going to accept bottle tops). I suspect it is a marketing method aimed at the ill educated or desperate. They will find out the cheapest they can get it for against a poorly trained negotiator/vendor and stitch them up. Possibly vendor finance and a rent back arrangement.
I agree- ring em, play dumb and watch the scam oops I mean "win/win" scenario unfold.
I agree- ring em, play dumb and watch the scam oops I mean "win/win" scenario unfold.
It's been said before, usually it's vendor finance and/or a rent back arrangement. Hardly ever is it a legitimate cash buyer for a house.
Yes, they're in Adelaide too, sometimes.
It's probably one of us looking for a way to by-pass an agent.
I suspect that whatever the seller saves on agent's commissions, s/he loses to a lower offer.
It's probably one of us looking for a way to by-pass an agent.
I suspect that whatever the seller saves on agent's commissions, s/he loses to a lower offer.
Disagree. As has been stated it's more likely a vendor finance type arrangement as taught by Rick Otton. See ibuyhouses.com.au
Agree with Geoffw. In addition to that, there are some companies set up out there that "buy homes" cheaply for all of the above reasons, but then they are onsold in a rent to buy scheme where the new purchaser pays a lot more than the price paid for it. It's sold as a 'win win', as they can purchase their own home and dont have to carry the cost of that up front in one go in terms of finance. Very creative and niche strategy.
It costs nothing to have a chat, doesn't it
Marketing companies would like you to believe that
