Is Frankston Going to Boom?

[athsaki]

Aren't an agents clients the sellers of the property? What ever gave you the impression buyers are their clients? You bag out agents in other posts, yet you're wanting them to secure bargains for buyers and act against their clients best interests?!

At the end of the day an Vendor is the agents client, however the purchaser will possible be the agents new client especially in an investment property. It has been my experience that any agent worth his salt is aware of this and runs a fine lien between vendor and purchaser., they tend to look for a mutually beneficial outcome between vendor and purchaser, a win win if you like.
On the other hand you have agents that are purely focused on the vendor, and other agents that are purely focused on the buyer.
The difference between getting an extra 5k on top of a price means the agent will at best get an extra $100 in his pocket, compare that to 6 or 7% of rental income he may get from the prospective buyer week in week out.
Even though an agent is supposed to work for the vendor I do not believe that it is as clear cut as all that.

 

[athsaki]

I'd call that a bargain too. Instant capital gain. Tell us about your experiences with agents - are they un/helpful in helping clients secure bargains?

I Believe you need to choose the agent carefully some are helpful in securing bargains, a lot are not. The one I am currently using is in the middle somewhere, he tries to get an fair deal for both parties. He is currently negotiating another deal for me for a 3 unit site for 330k, ( has an old house on the land at the moment) current rental 285 per week,

 

[tristanvs]

Errr nope there are still bargains close to Frankston CBD, I just signed on a house in Orwill st for 300k, on 663SQ metre of land, currently tenanted for 298 per week, I see that as a bargain....

Hi Athsaki, I had a quick look on rp data I couldn't see any recent sales on Orwil or was this an off market purchase? If so how did you go about purchasing it, ie. Door knock, letter box drop, knew the owners, etc?

 

[S.T]

At the end of the day an Vendor is the agents client, however the purchaser will possible be the agents new client especially in an investment property. It has been my experience that any agent worth his salt is aware of this and runs a fine lien between vendor and purchaser., they tend to look for a mutually beneficial outcome between vendor and purchaser, a win win if you like.
On the other hand you have agents that are purely focused on the vendor, and other agents that are purely focused on the buyer.
The difference between getting an extra 5k on top of a price means the agent will at best get an extra $100 in his pocket, compare that to 6 or 7% of rental income he may get from the prospective buyer week in week out.
Even though an agent is supposed to work for the vendor I do not believe that it is as clear cut as all that.

No way would I want my property managed by an agent that didn't do the right thing and get the best price for their current client. How do you know they're going to get you the best rent? Why would you use them when you're going to sell that property down the track? 6% or 7% rental for a SALES agent, means nothing - unless they own the business maybe.

Agents are bound by law to work exclusively for the vendor, not for the buyer. You need to keep that in mind when dealing with them.

 

[Lord Shanghai]

Agents are bound by law to work exclusively for the vendor, not for the buyer. You need to keep that in mind when dealing with them.

That is how it should be. However, in actuality, things are somewhat different.

Most agents live hand-to-mouth. All they want is a fast sale so they can get their commission right away. If that means underpricing a house, they will do just that.

 

[Lord Shanghai]

He is currently negotiating another deal for me for a 3 unit site for 330k, ( has an old house on the land at the moment) current rental 285 per week,

If you spot any more 3 unit sites selling for circ $330,000 and don't want them for yourself, can you please PM me?

 

[alicudi]

Hi

And I wouldn't mind a PM if any 3 unit sites come available for circa $330,000 in the same area.

Regards,

alicudi

 

[athsaki]

Hi Athsaki, I had a quick look on rp data I couldn't see any recent sales on Orwil or was this an off market purchase? If so how did you go about purchasing it, ie. Door knock, letter box drop, knew the owners, etc?

Hi tristanv
The property in question was advertised, albeit at a higher price than i paid, however , we are now making inquiries for next door (door Knocking)the owner wants to sell but because we asked rather than he list he thinks his property is worth 50k over its true value. So now the waiting game, will he prefer to live next to a rooming house or would he prefer to sell at a reasonable price? (market value) thats the million dollar question

 

[athsaki]

If you spot any more 3 unit sites selling for circ $330,000 and don't want them for yourself, can you please PM me?

Hi Lord Shanghai
There is a 3 unit site advertised at the moment, I have an offer in on this property however I am in two minds if I want this property or another property have my eye on. Unfortunately I cannot buy both at the same time.

345k will buy this property, it currently has a very old house on it which is rented for 285pw, the tenant want to stay for ever if they can and they would cop a small increase in rent i.e $5-$10 per week. So depending on how you do your calculations it could be cash flow positive.