Warning: Bayside Melbourne Conned by Big Agent & We Lost $100,000

[bananarepublic]

DON'T LET THIS HAPPEN TO YOU! TEST WHAT YOUR AGENT IS TELLING BUYERS!

We signed with Real Estate Agent group who told us they were "100% experts" and would be doing everything possible to sell our property. This was back in the property boom a year ago when everything was selling. No action for months & we started to get very concerned. Then we got several people to call and ask about ours, and turned out the agent was running our property down, saying they had many better available to view. They were offering to show other properties, and we were paying for the ads. It cost nearly $100,000 in penalty interest & holding costs due to the delay. We finally got rid of them when they ran out of Agency contract, a new Agent was appointed & sold property very quickly with no hassles. But its left a very bad taste. How can we best recover the loss? Is VCAT or Magistrates Court better? The Agent is slippery as an eel, as arrogant as a new Federal Treasurer, & we would need a solicitor, more money lost. What else can we do?

 

[boomtown]

You have my sympathy.

Maybe file a formal complaint with the real estate regulatory body in Vic as a start. Lawsuits are poor financial investments generally and I do not fancy your odds with this one because it is difficult to quantify your loss.

 

[bananarepublic]

Thanks boomtown, that sort of helps confirm about what we thought too, lawyers seem to be only interested in how much fees they can ramp up. But it was a real wake-up lesson for us.

Rule #1..Dont believe a single solitary thing any RE Agent tells you. They are NOT looking after your interests, only theirs.
Rule #2...How do you tell when an agent is lying? his lips are moving.
Rule #3...read rule #1

 

[wylie]

You cannot tar them all with the same brush just because you had a bad experience.

 

[cgw]

Useless Real Estage Agents

Well, I went house hunting on the weekend, and about 2 of the agents I spoke to did not seem too excited about making a sale. It is their body language and their unenthusiasm that got to me. I think we need to make sure that when we pick an agent to make sure they have that extra selling/marketing personality.
One guy was really good, he almost had me making the offer there and then. He even helped me to get up onto the ledge of the fence to check the neighbours.
That property is now sticking in my head.

 

[jingo]

DON'T LET THIS HAPPEN TO YOU! TEST WHAT YOUR AGENT IS TELLING BUYERS!

We signed with Real Estate Agent group who told us they were "100% experts" and would be doing everything possible to sell our property. This was back in the property boom a year ago when everything was selling.

This is very strange - there were more buyers in the market last year than properties. I don't mean to be rude but just wondering why you didn't become suspicious when the property failed to sell withing a month or so??

 

[Bradsdad]

You could always send a copy of your complaint to Neil Jenman and see if he wants to get on his high horse. www.jenman.com.au

May not get you very far but could at least give you an avenue to vent your displeasure.


Regards
Steve

 

[bananarepublic]

This is very strange - there were more buyers in the market last year than properties. I don't mean to be rude but just wondering why you didn't become suspicious when the property failed to sell withing a month or so??

Well we did. First month, they were saying they had people who were almost ready to buy, fair enough, lets wait and see. Second month, buyers evaporated for every reason under the sun, Third month we were getting desperate. That was when then sucked us into agreeing to Auction. The week before Auction, they had no buyer negotiations on table, no offers, we demanded they cancel Auction. They refused. Then there were no bidders at auction, you could hear a pin drop. Turns out, from hearing about other Vendors, their standard tactic is wait until vendor gets desperate from no activity, then crunch heavily in a buyers favour. Buyer always seems to be from outside of local area, never a local.

 

[evand]

Its not exactly an isolated incident.

You cannot tar them all with the same brush just because you had a bad experience.

 

[bananarepublic]

Real Estate Rats

Its not exactly an isolated incident.

Thanks evand. It does seem to be fairly common, we have now heard of other instances. Does anyone here have any experience of Jenman? There must be a better way to sell than just these:

1..big local agents = big marketing costs, big BS.

2..small local agents = small exposure, often appear desperate

3..Sale by owner = no way in this climate

 

[DavidMc]

Where you asking too much or fall for a quote lie?

It's best to get an independant valuation on a property before you sell, these are around $300-$400. Not saying the agent was not at fault, but this also could have happened if you're property was say $100k over priced.

How did you determine the asking price?

Was the property listed on the internet?

 

[stargazer]

Hi all

I reckon its because maybe some agents that decided to have a career change during the boom are now having to perhaps actually work to get a sale.

Cheers
BC

 

[kooki]

Thanks evand. It does seem to be fairly common, we have now heard of other instances. Does anyone here have any experience of Jenman? There must be a better way to sell than just these:

1..big local agents = big marketing costs, big BS.

2..small local agents = small exposure, often appear desperate

3..Sale by owner = no way in this climate

All sounds very familiar...

But why do you say "Sale by owner = no way in this climate"?

I would have thought that this climate is exactly the right time to sell privately. If you take all the financial pressures into account, being able to save yourself that huge commission chunk in one hit makes more sense in these tight financial conditions and is likely the single biggest saving you are going to make in any endeavour. If what agents do is bring a property to the attention of potential buyers by the means of marketing (and charging you for it) then why not simply spend the the marketing budget on your own campaign and save yourself the commission the agent charges for pretty much walking buyers through the property. Selling a property is not rocket science, complicated, dangerous, baffling, highly technical or any of the other scary things agents like you to believe. It just isn't! If agents really where indispensable then we wouldn't keep hearing horror story after horror story and they would sell every single property they list. How many horror stories have you heard involving private sales? Not old wives tales, but actual cases? I haven't heard one. I have heard a few about private sellers going off half cocked and not doing their home work but does that sound like something you would do? Selling yourself is not the cheap skate option, its the clever and prudent option. If you want to make money, that is. The old line about agents possessing negotiation skills that you as a vendor simply don't have is, if you think about it for a moment, plain rubbish. Who, as a vendor, hasn't had to negotiate with the agent on offers that they want you to accept? Who, as a buyer, hasn't negotiated with the agent about accepting offers? One way or the other you are still going to be negotiating yourself so why pay an agent to slow things down and introduce a third interest, one which is of no benefit to either buyer or vendor? And this ludicrous notion that a particular agent has exclusive buyers on their books that no other agent or seller has access to is one of the most idiotic lines around. If that where true then they would not need to advertise your property at all. Do you as a buyer only look at one agents properties and ignore everything else? Of course not! You look for and find suitable properties that are advertised. The true criteria is suitability and not which particular agent has it listed. And the reason you find it is because it is being marketed. Thousands of people market and successfully sell their property privately every year. What makes you any different form them? Are they all just lucky/geniuses. No, but they do believe in themselves. Agents true skills are not negotiation skills, they are conditioning skills. And they do an absolutely fabulous and truly professional job at that. They have you thinking that selling privately is dangerous, scary, stressful, extremely difficult, foolish, likely to fail and the list goes on. They offer to make it all ever so easy for you. Making money isn't usually "easy" but loosing money is oh so easy, especially if you have someone kindly helping you along.

Is the objective to make money or is it for things to appear ever so eeeasy...

Personally I don't find life very easy when I have an agent with his/her hand shoved deeply in my pocket and firmly gripping my...wallet. But that's just my humble attitude... and that of thousands of other private (and financially better off) sellers.

 

[BayView]

Thanks evand. It does seem to be fairly common, we have now heard of other instances. Does anyone here have any experience of Jenman? There must be a better way to sell than just these:

1..big local agents = big marketing costs, big BS.

2..small local agents = small exposure, often appear desperate

3..Sale by owner = no way in this climate

There is.

For a start; points one and two are myths. The punters are already out there looking around the neighborhood and in the agents' windows. They'll enquire when they are ready.

1. Don't spend any more than $100 on ads - all you need is a sign on the front fence, a photo in the agent's window - both these are free to you, and get the agent to run off about 50 fliers for enquiries, and a listing on r/e.com. Those two are the $100 bit. They'll try to sting you for the internet ad, but they have to pay a subscription to that per year, and they put thousands of properties on it - many from Vendors who pay, so don't be conned. Tell 'em $100 max, or no deal and start walkin' to the door.

2. as above with smaller agencies.

3. pain in the backside - unless you're close by and have loads of time.

 

[evand]

Great post kooki. So very true. Kudos to you.

 

[wylie]

I also liked your post kooki..... but would have liked that one big paragraph split into smaller paragraphs for my tired old eyes

 

[nonrecourse]

Know your land values before selling

Where you asking too much or fall for a quote lie?

It's best to get an independant valuation on a property before you sell, these are around $300-$400. Not saying the agent was not at fault, but this also could have happened if you're property was say $100k over priced.

How did you determine the asking price?

Was the property listed on the internet?

We invest only in a few areas in the bayside area of Melbourne. I am amazed that anyone on this site would be relying on a valuer to tell them what their property is worth

If your a property investor surely you know the ongoing land value in your area from regularly attending auctions and keeping an eye on the weekly auction results. Most results quote the land area so this is not rocket science we are talking about.

 

[Twitch]

We invest only in a few areas in the bayside area of Melbourne. I am amazed that anyone on this site would be relying on a valuer to tell them what their property is worth

If your a property investor surely you know the ongoing land value in your area from regularly attending auctions and keeping an eye on the weekly auction results. Most results quote the land area so this is not rocket science we are talking about.

I don't this this is practical once you have
a few properties
those properties are spread around
you aren't looking to sell or buy in the near future
you have a life

 

[kooki]

I also liked your post kooki..... but would have liked that one big paragraph split into smaller paragraphs for my tired old eyes

Thanks!

And yeah, it does look a little full on, sorry about that.

Better job next time...

 

[nonrecourse]

If you talk the talk make sure you walk the walk

I don't this this is practical once you have
a few properties
those properties are spread around
you aren't looking to sell or buy in the near future
you have a life

From this garbeled message I assume you mean you don't do it now that you have a few properties that are in different locations and you don't intend to sell.
And that old chestnut when people are too lazzy to walk the walk..... they discover they have a life

Kinda reminds me of the advertisement recently on the TV from a financial planning/Insurance mob; They had the rather catchy tune with ... wouldn't you rather,,, showing a couple out enjoying themselves rather than having to take responsibility for their investments.... I wonder how happy they are now about allowing that mob to "manage" their investments into the current black hole