local agents keeping frankston prices low
This post is about market manipulation. About how local agents have a vested interest in keeping frankston prices low. Take heed if you own property locally and want your investment to grow at a sustainable rate. Much of this post was posted on the other thread about Frankston and was in response to an agent who posted on this hread, asking investors to "wait your turn".
Over drinks a year ago, a friendly local agent once confided in me that most agents would prefer local houses to sell for around the $230k ballpark: "in frankston we prefer to work on fast sales and high turnover rather than wasting time trying to get the highest possible price for owners; it takes too much of our time; a cheap house is always easier to sell. Selling houses at around half the melb median suits us agents just fine because few of us own property locally".
The usual modus operandi that agents use to keep prices low: Frighten a few grannies with talk of an oncoming world depression and persuade them to sell their houses for barely half the Melb median price. Then use the resulting low sale price as "evidence" that prices are falling. Show the lowest sales figures to homeowning mums and dads in the area in order to markedly reduce their price expectations.....thereby setting off a downward spiral in prices. Sex things up a bit more by telling people the marina will never be built and that "now is the best time to be selling, before the global meltdown kicks in".
This is akin to shouting "fire" in a crowded cinema. It is not a victimless crime. It causes real harm and peoples lives can be severely affected. Local mums and dads who have worked hard to buy their homes are hurt the most.
After inflation, many frnkston homeowners are often persuaded to sell for less than what they originally paid for their homes all those years ago. How ethical is that? But no matter - the agents always get paid their commission. That is all they usually care about
Another trick many agencies use is to accept a homeowner's initial listing price and then not answer calls from prospective buyers.The agent then tells the vendor that there's been no interest from prospective buyers ("its the world economy mate") and he should lower his price. Once the price is lowered, the house is sold in a flash.
The conduct of many agents in Frankston and surrounding areas is reprehensible and hurts mum and dad owners and investors. There are severe penalties - including jail - for price fixing and market manipulation. The law eventually catches up with people who consider themselves untouchable. Go ask Mr Lowy. Send the message home to agents that this is unacceptable.
After inflation, many frankston homeowners are often conned into selling their homes for less than what they originally paid for them all those years ago. How ethical is that? Why are Frankston houses selling for barely half the melb median?
This post is about market manipulation. About how local agents have a vested interest in keeping frankston prices low. Take heed if you own property locally and want your investment to grow at a sustainable rate. Much of this post was posted on the other thread about Frankston and was in response to an agent who posted on this hread, asking investors to "wait your turn".
Over drinks a year ago, a friendly local agent once confided in me that most agents would prefer local houses to sell for around the $230k ballpark: "in frankston we prefer to work on fast sales and high turnover rather than wasting time trying to get the highest possible price for owners; it takes too much of our time; a cheap house is always easier to sell. Selling houses at around half the melb median suits us agents just fine because few of us own property locally".
The usual modus operandi that agents use to keep prices low: Frighten a few grannies with talk of an oncoming world depression and persuade them to sell their houses for barely half the Melb median price. Then use the resulting low sale price as "evidence" that prices are falling. Show the lowest sales figures to homeowning mums and dads in the area in order to markedly reduce their price expectations.....thereby setting off a downward spiral in prices. Sex things up a bit more by telling people the marina will never be built and that "now is the best time to be selling, before the global meltdown kicks in".
This is akin to shouting "fire" in a crowded cinema. It is not a victimless crime. It causes real harm and peoples lives can be severely affected. Local mums and dads who have worked hard to buy their homes are hurt the most.
After inflation, many frnkston homeowners are often persuaded to sell for less than what they originally paid for their homes all those years ago. How ethical is that? But no matter - the agents always get paid their commission. That is all they usually care about
Another trick many agencies use is to accept a homeowner's initial listing price and then not answer calls from prospective buyers.The agent then tells the vendor that there's been no interest from prospective buyers ("its the world economy mate") and he should lower his price. Once the price is lowered, the house is sold in a flash.
The conduct of many agents in Frankston and surrounding areas is reprehensible and hurts mum and dad owners and investors. There are severe penalties - including jail - for price fixing and market manipulation. The law eventually catches up with people who consider themselves untouchable. Go ask Mr Lowy. Send the message home to agents that this is unacceptable.
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