Sydney - pre Christmas - still hot - 200k over reserve

[cu@thetop]

I would have thought that if you're buying the house the information you require would be in the required documentationIn the perfect world...yes and that you wouldn't rely on the agent for your due diligence No, but I rely on the agent for the basics-including property description, easements etc. Last time I checked the agent represents the seller not the purchaser True- so the agent is open to the same questions I would ask the seller. If the agent lied to you then I agree OK- but what about where the agent is silent on a salient feature. It's not the agent's place to warn about the idiot neighbour from hell you get when buying the property- but it is the agent's role to disclose the legalswith you however if you did it to be mischievousWhat is mischievous about this. Seller chose to go by auction (and not private treaty) which in my view means they open themselves up for this. Is it mischievous to draw the matter to all prospective buyers- so that they are on a level playing field? You mention "due diligence" but many inexperienced buyers rely on the agent. If a buyer was unaware of an easement and buys I take it your view is then ha ha sucked in wooden duck then I certainly don't.

Did you ask the agent during the course of the campaign about an easement? What relevance?. Is there a rule not to ask about it during an auction?

...And I'll all due respect, a lot houses in Melbourne have easements on them and the agent certainly doesn't tell the buyer about them, it's clearly stipulated on the title diagram.

So it's a case of hush hush- don't mention any issues which are not visible on a physical inspection but relate to legal title. Put it on the plan under 4 pages of the contract so no one will notice it? What about foreign buyers (them there Chinese buying everything) who don't understand it? Tough titties- they were only foreigners anyway?

I gotta ask: has anyone who has purchased through such a "hush hush" agent where there was an easement not bought to their attention ever listed the property for sale through the same agent after? I suppose it depends whether the agent is in it for the long term or the quick buck.

 

[andrew_de_a]

It's an easement! Do you expect the agent to tell you upon entering the front door if a property has - an easement, an overlay etc, an outstanding power bill?

When does the onus fall on the buyer to make sure that they have done their own research?

 

[cu@thetop]

It's an easement! Do you expect the agent to tell you upon entering the front door if a property has - an easementyes, an overlayno unless I've expressed an intention to develop etc, an outstanding power billno-that's the seller's issue?

When does the onus fall on the buyer to make sure that they have done their own research?Is there no onus on the agent to disclose something that will have an effect on the property not physically viewable/discoverable.

Here in Qld at a few properties I have looked at the agent have printed out a city council floodwise search- and in fact it is bought to people's attention with all of the other paperwork. There is no obligation under the REIQ contract or legislation to do this mind you. They know the buyers would like to know.

 

[andrew_de_a]

I agree with you regarding the agent disclosing to the buyer that there is an easement or overlay etc that would effect the purpose for which the buyer is purchasing the property although the onus is on the buyer.

I only believe that the information should be given though if deemed specifically relevant to the buyers circumstances. If someone is buying a house to live-in you wouldn't need to tell them about a sewerage easement.

Also.....what you're saying has nothing to do with what mrsali did. She asked a question at an auction when she didn't have any intention on bidding and has admitting to potentially derailing the auction.

 

[MsAli]

Also.....what you're saying has nothing to do with what mrsali did. She asked a question at an auction when she didn't have any intention on bidding and has admitting to potentially derailing the auction.

No it wasn't derailed in any shape or form. Vendor expectations were 10% above the market value. Both the auctioneer and the agent knew that they were not going to get the offer on what the price expectations were, hence the quick wrap up. I think they shot themselves in the foot in a way. If they wanted interest they could have quoted lower. But they went and quoted, not even the market value but well above it. They knew they weren't going to sell on the day.

 

[andrew_de_a]

.

Clearly the turn out wasn't good - may be due to this easement issue. And I know may be I kinda ruined her chances of having it sold for 700k (asking 720k-780k range on the advertisment). And I felt BAD afterwards, but isn't that a valid question to ask at an auction?

Why would you ask a question at an auction that could potentially put other buyers off if you had no intention of bidding? Couldn't you have gone up to the agent before or even after the auction?

 

[Oscar]

It does sound a bit mischievous to me. It's an auction for sale. By that time all serious bidders should have done their homework. The auctioneer job is to obtain the highest price for the seller and agent by managing the bids. That's all. I wouldn't expect the auctioneer job was to answer a series of technical questions from the non bidding general public. I think the auctioneer handled it perfectly - speak to your lawyer about it....

 

[beachgurl]

A few auctions in my suburb have passed in the past 2 weeks. Makes me feel a bit nervous for my auction next weekend. Hopefully it's just a case of over-ambitious sellers (or agents pushing an unrealistic price) and not a drop in demand.

 

[monalisa]

Hopefully it's just a case of over-ambitious sellers (or agents pushing an unrealistic price) and not a drop in demand.

I think this is it - over ambitious sellers - trying to maximise profits. Rightly so. But being unrealistic is silly.

At the auction we attended - the advertised range was $720K - $780K. Only one bid at $650K, and then vendor bid at $700K. Clearly they knew it was overpriced. The market determines the price and $650K is way off their expectations!