RA tricks

[wealth101]

We have just been following a property in Richmond (Melb) in the past few weeks and feel so with the agent.

A few weeks back when it was first listed it was advertised for $700-770k with heading "Period Perfection in a Renovated Edwardian". Last night we saw it with $650-$750k and heading "MUST BE SOLD - ALL OFFERS CONSIDERED!!!"
http://realestateview.com.au/Real-Estate/Property-Details-buy-residential-1938985_S.html

So we said the vendor must be keen to sell and may be last week of auction and they did not have much interest considering tenant in there (limit certain market) but today the agent told us there is already an offer of around $750k. Yet if you actually looked the ad now he re-submitted the ad so it is now shown as new stock with a starting price of $650k and a new heading like that ie it is $100k less than the offer he has got. If we recorded his saying today I would submit it to ACA, TT or the REIV. Just felt so deceiving when he said he already had interest and offer of $750k. We have the internet print out of the 700-770k with heading "Period Perfection in a Renovated Edwardian" ad. It is the same agency the same RA. Now I have just printed the current Ad so I have two print-outs to prove it but no proof of what he told us today....Felt silly @ that time and forgot to ask if he has a written offer of that $750k :-(. Anyway we are no longer interest -> not going to the auction this Sat any more.

 

[BayView]

Make you wonder how anyone who is a forumite who is also an agent isn't totally embarrassed by their chosen profession, and can't wait to find a fair dinkum career.

 

[ldriver]

I'm sorry you were undone by the REA, but the last time I looked in Richmond, there was a degree of bait-pricing.

If you are serious about the area, I would purchase a sales report and have a look at the pricing of the different zones in Richmond.

I think it would be fairly difficult to purchase a 3 bedroom house in richmond for 650K.

 

[Dazz]

You seem to be placing a very large emphasis on what the Seller's price range is, and almost nothing on what your due diligence is telling you.

How much is the place worth ??

 

[Intrinsic_Value]

You seem to be placing a very large emphasis on what the Seller's price range is, and almost nothing on what your due diligence is telling you.

How much is the place worth ??

oh my god, we have another intrinsic value on this forum and his name is DAZZ

 

[wealth101]

We know the place was sold after auction about a 15 months ago for $622k and the place definitely looks nicer. We went there to see what has been done to the house eg cosmetics or real renovation.....and why they re-sell and re-ad as MUST BE SOLD - ALL OFFERS CONSIDERED! with lower price range. Even with $650k the house is still only 4.8% yield we would not consider it....

Our point was the tactic that they employ...if they have not any offer than lower the price to attract the customer it is sort of acceptable but they do have yet still re-ad with lower price than the offer.

cheers, tracey

 

[Propertunity]

You seem to be placing a very large emphasis on what the Seller's price range is, and almost nothing on what your due diligence is telling you.
How much is the place worth ??

^^^^^
What he said.

 

[wylie]

Make you wonder how anyone who is a forumite who is also an agent isn't totally embarrassed by their chosen profession, and can't wait to find a fair dinkum career.

With all due respect, does the recent thread about rip off mechanics make you totally embarrassed by your chosen profession/business and make you anxious to find a fair dinkum career?

There are shoddy operators in EVERY profession. I'm always amazed on here when people slag off at real estate agents, but often those same posters are happy to be a bit "shoddy" themselves to get a bargain.

I am thinking of the post just recently where the poster gloated about having the vendor fix things that clearly were not required to be fixed and is now having a whinge about a different profession and for being asked to pay for work done by someone. Talk about hypocritical!!

I know I'm touchy about agents, because my mother was a very honest one, and most that I know are the same, so lets be a bit more realistic here.

If you find an agent doing the wrong thing, report them. Personally, I have called several agents this past month in my search for a house for my son, and have not found them underquoting. I have found them very careful about giving price indications. They are not all bad .

 

[andrew_de_a]

Make you wonder how anyone who is a forumite who is also an agent isn't totally embarrassed by their chosen profession, and can't wait to find a fair dinkum career.

I thought you were a bit smarter than that!

 

[evand]

It's not a few dodgy agents, its a DODGY INDUSTRY with very few honest agents in it. FACT!

The line 'a few cowboys gives the whole RE industry a bad name' is a total joke and almost insulting.

 

[wylie]

We'll have to disagree on that one. I know a LOT of agents.

It's like saying all accountants are clueless about IPs UNLESS they are successful property investors themselves (often touted here too). Or saying all blondes are airheads.

 

[Aaron Sice]

We'll have to disagree on that one. I know a LOT of agents.

It's like saying all accountants are clueless about IPs UNLESS they are successful property investors themselves (often touted here too). Or saying all blondes are airheads.

but all blondes ARE airheads - i'm blonde and i can attest to that!

 

[BayView]

With all due respect, does the recent thread about rip off mechanics make you totally embarrassed by your chosen profession/business and make you anxious to find a fair dinkum career?

Not at all.

I've been on the receiving end of both dodgy mechanics and dodgy agents. Now that I am in the mechanic world, I can sleep at night because we run a totally professional and honest outfit. No "over-servicing" in our little corner.

I am happy to see the cowboys caught in the act on ACA or the like. Seerves 'em right I say.

This is a thread about a dodgy agent scenario, so I put in my aspect on it.

I am happy to do the same no matter what industry we discuss - if they have a dodgy element to it.

I've unloaded on tradies, pollies, banks, d/head greenies, lefties, global warming - you name it. There are no sacred cows in my book.

I know you are "closer to home" than most of us on the subject of agents so it's a more sensitive point, and I'm sure your Mum was/is a terrific agent. I know some very good ones too.

But Wylie; you have to agree - their industry has had a fair enough chance to clean up their act, the media reports are almost weekly about what shonkiness (still) goes on, and still the Industry minders have done absolutely nothing to get rid of the cowboys.

Try and make a complaint to the REIV about one of their members and see how far it goes.

They cop their right whack in my opinion.

 

[Strannik]

I've unloaded on tradies, pollies, banks, d/head greenies, lefties, global warming - you name it. There are no sacred cows in my book.

what about righties?

 

[wealth101]

To be cleared, we personally know a few agents, 2 from high school days and 2 from buying and selling our properties. We do get together socially but they would not under quoting like that...no ethic.

Yes there are always Good and Bad in every profession but for those like this we should name and shame.

I am just merely pointing out that this agent is and they should not be in the profession. Just to repeat we would not not buy a property with that low yield.

 

[Dazz]

I am just merely pointing out that this agent is and they should not be in the profession.

Don't worry - they're not.

It takes more than a 4 day REI course or a 2 month TAFE course to belong to a profession.


Medicine.......nope, the REA doesn't fit there.
Law.............nope, the REA doesn't fit there.
Engineering...nope, the REA doesn't fit there.
Arms............nope, the REA doesn't fit there.


It takes more than wearing a nice suit, having Italian shoes and a whizz bang sports car with a "Home Open" sign flung in the back seat to qualify as a professional.

 

[wealth101]

Dazz, Agreed that's all this REA is just

wearing a nice suit, having Italian shoes and a whizz bang sports car

I thought it takes longer than few days to be come an REA. If it is just that few days that explains it.... I thought it took longer than few days to be a REA. I am not sure but from memory our friends did their course longer few days but they did it @ RMIT/Swinburne (part time though).

Does not matter, I should not waste time on this REA any more.

 

[BayView]

what about righties?

Nah; we're ok!

Further to Wealth101's post; I did the R/E Representative Course back in '02. I did it by correspondence, took a couple of weeks from memory and then sat a couple of exams at the local TAFE College.

There wasn't a lot to it (the Course) I didn't think.

The real work and skill is in actually doing the job and dealing with the buyers and Vendors.

The structure of their industry for payment really sucks; it's set up to force salespeople to become ruthless to get sales I reckon; they get paid a nominal retainer, which is like an "advance on commission" and must be repaid from their commissions. From memory it was something like $350 per week, Admittedly this was in '02, but still...

So, if you go a few weeks or so without a sale (and it is very easy for this to occur), you can easily end up having no money left over for yourself after the Principal deducts the retainer out of your next sale commission.