Looks like the solution to Melbourne underquoting is ....

[Twitch]

... don't quote any price in writing.

Well that seems to be the tack that some agents like Jellis Craig and Marshall White have just started taking this past week for inner Melbourne properties.

At least in the old days buyers could take a (admittedly underquoted) quoted price and add 20-30% to get an approximate selling price.

All the whining about underquoting which has now backfired for buyers as there is now NO price provided in writing for most of the properties advertised by these agents. I hope we don't get back to the bad old days of the 90's when no prices were advertised and we had to ring agents about every porperty to get a verbal price estimate.

I hope this trend doesn't spread to other agents.

 

[Michael Croft]

The one that annoys me is the 'price category' system aka 'buyer enquiry range', A = $350 - $450k, B = $450 - $550 and so on. I suppose it's better than nothing, but not much.
No problem on my home turf, as the agents will tell me exactly what they expect the sale price to be. But when out of area, it's a pain.
MC

 

[ozi]

I always thought the solution to underquoting was to eliminate the agents from the sale completely! Wouldn't that be great, dealing direct with the vendors

Ozi

 

[auzieblogger]

Well not all are same IMO,

After rallying around for 3 months trying to secure a bragain, in the quoting madness (crazy me), I finally figured out not to make an offer for Properties listed as $XX +, OR in Range .
Last IP I made an offer had an exact sale price (No plus, No Range) , and I ended up paying 3% Less. on a 2bedder Unit (Great Rent. 25K from Melbourne CBD). Initial offer was 5% Less ...
Good for me the venfor wanted to settle within this financial year, so wanted to sell soon.
The Agent had another similar Prop. in nearby area that was quoted as $XX+, and he blatantly told me "expect to pay 10% more than quoted"

Of course its not the same in all suburbs, but hey there are a few genuine quotes amongst the underquoted Lot as well

 

[Dazz]

Wouldn't that be great, dealing direct with the vendors

Yes indeedy. We just had another confirmation of this last week.

Managed to bypass the whole matrix of "hangers on"....

My settlement agent
Their selling agent
Their patheticly slow solicitors
Their even worse and grossly incompetent property managers
Their tenant
My banker
Their bankers
Their brokers....and surely a few more into the mix)

as I had a very pleasant chit chat with the MD of the Seller....

Within 10 to 15 minutes of chatting, the deal was done, the issues were resolved, all was agreed, and not once was there any squirrelly "my client" type comments. Just two Aussie blokes talking and agreeing on a deal. The most efficient form of negotiating, two principals talking, produces yet another top result for both parties.

The minions are now shuffling paperwork, primping and fluffing their professional tail feathers with the same non-chalant disinterest, this time however with a clear way forward finally for both parties, instead of this endless fruitless trail of professional written waffle.

For our group, we've now come to the realisation getting rid of all of these hangers on is the main task in cutting successful deals.

 

[Giulio Taranto]

Does make it a bit harder in the residential game though when most vendors are signed up with agents. It would be fantastic if all the hassle of dealing with so many parties disapeared.

 

[fezz]

I saw this on a Real estate Ad the other day

BIR $250,000-$300,000
* BIR - BUYER INQUIRY RANGE. This is not the Estimated Selling Price but a Buyer Inquiry Range. If you are looking in this range we suggest you may be interested in this property and recommend an inspection.

 

[Twitch]

I for one would far prefer (as a buyer) to be dealing with an agent than the vendor during the inspection phase.

I would rather negotiate a price and terms direct with the vendor though.

 

[jingo]

Hi Twitch,

Have noticed this week that more agents are not putting prices on properties advertised for sale. Seems to have spread to the Inner Northern suburbs of Melbourne now.

Regards Jason.

 

[Twitch]

Hi Twitch,

Have noticed this week that more agents are not putting prices on properties advertised for sale. Seems to have spread to the Inner Northern suburbs of Melbourne now.

Regards Jason.

Yup, and in the Saturday domain there's a new acronymn, "N.P.D" which I'm guessing is "no price disclosed". I makes for boring reading