So, if one of your clients wants to buy a house, you would advise them that these costs are optional?
Under-quoting still happening
- Thread starter Razzle7
- Start date
so, if one of your clients wants to buy a house, you would advise them that these costs are optional?
..............+1!
Anyone that wastes my time is indirectly bringing harm in my opinion. Time away from friends and family and not to mention prop's list of "discretionary" spending which i reckon is necessary in looking after my back. Recall the number of times I get to a property and then they tell me their reserve is XXk more than ther reported quoted range.
Sorry Razzle7 - I don't have any sympathy for you about this. I have been through this before, I just purchased a property that had a reserve of $5m but they finally accepted my offer of $4.3m. You just have to play the game and don't complain just because someone out-bid you or the vendor changed their mind. No one is going to hand anything to you on a silver platter - and you shouldn't expect them to.
Frankly, I'm gobbsmacked by your attitude.
Anyone else feel the same?30% of all properties nationally have had or will have a termite attack at some point. I have seen many, many contracts with unfair clauses that we have had to negotiate out of contracts before we let our clients sign them. Most homes have some kinds of building defects - some minor and some major!
If you've experienced none of this at all, you have led a very enchanted life IMO.
You are right. Termites are very common (I have had a property that has had this problem). Most buildings have some sort of structural issue (rising damp, rotting wood etc). We all know that. But why do we have to pay several hundred dollars each time we look to purchase a property to find that out? A property buyer must be aware of these potential risks, but at the end of the day, it is all reflected in the price you paid for the property.
This has caused many would-be home buyers to splash money on these building/pest reports before they have been even purchased the house - then they get angry when they don't even get the property at auction (due to underquoting or whatever reason). I certainly do not recommend people throw this kind of money down the drain for a property they 'might' buy. It adds up both monetarily and emotionally when you spend thousands on reports that actually lead to nowhere.
Also, I am surprised that you would recommend people spend this kind of money all the time (although I doubt you would). As a buyer's agent you are familiar with all kinds of properties so you can tell what problems are going to arise even from a superficial inspection.
This has caused many would-be home buyers to splash money on these building/pest reports before they have been even purchased the house - then they get angry when they don't even get the property at auction (due to underquoting or whatever reason). I certainly do not recommend people throw this kind of money down the drain for a property they 'might' buy. It adds up both monetarily and emotionally when you spend thousands on reports that actually lead to nowhere.
Also, I am surprised that you would recommend people spend this kind of money all the time (although I doubt you would). As a buyer's agent you are familiar with all kinds of properties so you can tell what problems are going to arise even from a superficial inspection.
Because it is too late after you have purchased to do anything about it.
You're right I don't. Except for the ones I recommend we buy.
I am yes, but I also don't have X-Ray vision to see thru walls and I'm too old to climb in roof spaces or sub-floor areas - I leave that to the pest & building guys.
correct me if i am wrong - razzle was looking for a quality apartment - termites and inspection or pest reports would not be very applicable in this scenario.
as for underquoting - it's all part of the game of vendors and agents. it's like saying smoking is bad for you - everyone knows that - but ppl still do it.
as for underquoting - it's all part of the game of vendors and agents. it's like saying smoking is bad for you - everyone knows that - but ppl still do it.
That's all well and good, but I think you have missed the point.
If it is advertised at $550 - $600, then the reserve should be in that range. Otherwise it's false advertising. Simple.
I realise there are differences between Victoria and the rest of Australia, but it shouldn't be part of the 'game'.
If a second hand car dealer had a car on sale advertised 'from $19,500', yet wouldn't accept an offer of $22,000, would this be acceptable?
Yet we accept it as part of the real estate game.
Frankly, I'm gobbsmacked by your attitude.
30% of all properties nationally have had or will have a termite attack at some point. I have seen many, many contracts with unfair clauses that we have had to negotiate out of contracts before we let our clients sign them. Most homes have some kinds of building defects - some minor and some major!
If you've experienced none of this at all, you have led a very enchanted life IMO.
i have a wand if you'd like to buy, hardly used. twice in a movie.
Frankly, I'm gobsmacked by your attitude.
+2 here. Building inspections, unfortunately and until the rules change, will continue to form part of the necessary DD in attempting to buy a residence. Just as strata reports should be conducted on units, they are part and parcel of the buying process. More the fool who doesn't carry out their investigations here and factor this into the final price.
Sorry Aaron but if you've "Never had a problem with pests, unsatisfactory contract conditions or structural difficulties" then you obviously haven't purchased too many properties. Lucky so far, I'd say. You must like Russian Roulette
Surely it can only be reflected in the price you pay if you are made aware of the problem & adjust your offer accordingly? A few hundred bucks is just a cost of doing business on a transaction worth many hundreds of thousands. It's cheap insurance.
+2 here. Building inspections, unfortunately and until the rules change, will continue to form part of the necessary DD in attempting to buy a residence. Just as strata reports should be conducted on units, they are part and parcel of the buying process. More the fool who doesn't carry out their investigations here and factor this into the final price.
Sorry Aaron but if you've "Never had a problem with pests, unsatisfactory contract conditions or structural difficulties" then you obviously haven't purchased too many properties. Lucky so far, I'd say. You must like Russian Roulette
say if you went to look like 20 properties and did all the inspection reports and for some bad luck you didn't get it- then every property would be $500 X 20 = $10K
I am also gobsmacked by some of the attitudes. Underquoting is illegal. If there is a quoted range of 550-600, then I expect a reserve within that range. Because that's what has been advertised. It's SIMPLE.
What happens after that I couldn't give a rats. It might sell for 900k due to interest. But no false advertising please, it's a waste of time for everyone.
What happens after that I couldn't give a rats. It might sell for 900k due to interest. But no false advertising please, it's a waste of time for everyone.
^I think how it works is that the price advertised must be within x% of the agent's estimate. This is what 's on the sale authority as the agent's opinion of value. However, that doesn't stop every second vendor from being convinced that their house is, of course, worth more than the dumb REA knows.
It would be interesting to hear from an agent what % of vendors - especially in this market - are 'conditioned' down during the 5 weeks of the campaign. Often you really do need to get some feedback on market interest to know what a property is likely to sell for. In my experience it's usual to set the reserve either on the day or the night before. It's also true that the agents don't really want to talk about a reserve price until the end of the campaign.
It would be interesting to hear from an agent what % of vendors - especially in this market - are 'conditioned' down during the 5 weeks of the campaign. Often you really do need to get some feedback on market interest to know what a property is likely to sell for. In my experience it's usual to set the reserve either on the day or the night before. It's also true that the agents don't really want to talk about a reserve price until the end of the campaign.
Well this is the thing I don't understand about 'underquoting'. If everyone there is like you and has been misled about the price range, then why does the house sell for a lot more than the advertised price? Surely these people who are misled would leave in disgust, knowing that the property is way outside of their budget.
