Worth cold calling REAs to find more properties?

[Jaz]

Hi all,

I have recently decided on a couple of locations to search for a property. Although I can find some appropriate listings on the real estate websites, I'm wondering what else I can do to try and find properties in these areas. I'm guessing that REAs don't necessarily list every property online if there is enough demand out there and they have potential buyers in mind. Is it worth contacting REAs in the area? What about visiting the branches in person? Any tips on getting ahead of the competition (if there is any)?

Thanks guys,

Jaz

 

[JWR]

Yeah do exactly that - if you show you are serious they will call you when someone needs a sale quickly and cheaply - and then you can get ahead of the comp.

 

[boomtown]

But beware properties sold "off market" are not necessarily a good deal. It's a great pressure tactic. "I need this sold and can give you 24 hour exclusive rights but after that I'm putting it in the market".

 

[womble66]

But beware properties sold "off market" are not necessarily a good deal. It's a great pressure tactic. "I need this sold and can give you 24 hour exclusive rights but after that I'm putting it in the market".

This is a tatic but sometimes its the only way to get a property that has a known high demand. My mum probably paid $50K (4%) above market value in an off-market sale but she wanted to move out of her family home into presitige harbour front unit where the good ocean view units seem to have all been sold in this method. Must be like a waiting list as mostly older owner occupiers so only come up when the owner passes away or the high flyers move on or go broke.

She wanted to live there so the extra $$$ was offset by getting into the unit. Worked out for her and now doesn't regret paying near the asking price.

 

[priscilla]

Well worth doing, there are occasionally sellers who don't want their property to go to the general market and want no form of advertising (don't understand it myself), these properties can only be sold to buyers the agent is working with.

We have sold several this way over the years and no one would know they are For Sale /Sold until the details come through RP data/Pricefinder.

 

[Property Meister]

I had a property that in my mind and according to a few agents was worth about $220-$240k, however, one agent insisted it was worth up to $300k,

naturally she wanted me to sign up and start an advertising campaign,

so I said to her, im not paying for an advertising campaign, since ive just bought it, Ill let you try and sell it, but with no advertising,

since I wanted to keep it unless, I did get $300k for it,

so I told her she could have the listing without any advertising

 

[Aaron_C]

It's worth contacting REAs I suppose but it really depends. A good REA will follow you up, chase you, show you new properties as they get them etc and always have you in mind. However, a bad one will not do any of those things so you are wasting your time. I have met a few good agents but most of them aren't. Plus - most would only bother to call you if you are a proven purchaser rather than someone who's 'just looking'.

 

[marg4000]

Hubby inspected a unit with an agent who mentioned in passing that she was really p^&*&d off with a buyer who was nit picking after negotiating a really good price on another unit. Despite negotiating a huge discount for the time the buyer was arguing over some very minor matters.

As it was in our price range hubby inspected it and signed a contract for the discounted price on the spot. (I nearly had a coronary when he phoned me at work and told me he had bought a unit, but that is another story.)

Agent immediately faxed contract to vendor (who was in real financial trouble) who signed it on the spot.

Agent reckons the look on the other buyer's face when she told him it had sold while he was trying to knock off another $100 or so was worth more than the commission.

Always rented, trouble free, sold it 11 years later and more than tripled our money.

So yes, contact agents and let them know you are serious. They CAN do you favours.
Marg

 

[Propertunity]

I'm guessing that REAs don't necessarily list every property online if there is enough demand out there and they have potential buyers in mind.

That's true. They call their lists of investors and BAs first before bothering with a marketing campaign (if they're smart).

 

[Propertunity]

But beware properties sold "off market" are not necessarily a good deal. It's a great pressure tactic. "I need this sold and can give you 24 hour exclusive rights but after that I'm putting it in the market".

That's true...... but so is the converse.

Selling agents still receive their full commission from their vendor regardless of whether or not they go through with a full marketing campaign.....as long as they can justify the offered price to their vendor (rightly or wrongly) and the vendor is convinced to accept. It works for me enough times to make it worthwhile........and yes, many times it is not a good deal (and we don't buy), but like anything if you do it often enough, you make your own luck.

 

[Jacque]

Absolutely. You need to stay in regular contact to hear of brand new listings and those "coming up" that might suit. Whilst it's true that most vendors still prefer to publicly advertise there are a small handful who desire a discreet and private sale. Most of the time they're over-priced properties but sometimes not...
Good luck in your quest.

 

[Jtkumnick]

I would meet some of the agents that sell what you are looking for. Go to an open home, stop past their office. Build a bit of rapport, if you want access to what others dont have, then do what most others dont.

Most buyers think agents are a pain that get in the way because they do not understand the game, and as a result, never get any of the best deals.

Sometimes a property is listed for a week or two before it shows up on re.com.au or domain.com.au, if you are on an agents mind as a SERIOUS buyer, you'll find out about it before everyone else does.

Ive seen many people not want their house advertised to the public for fear of someone finding out (ex-lover, current lover, creditors, family etc). If an agent has your phone & email- you'll know about it.

People who need a sale but cant advertise to the public must accept lower prices due to this factor. Ive seen it many times. Par for the course.

And the golden rule if you want a favour from an agent is to be friendly to them. There are so many people out there who treat agents like crap, if you want a favour, it doesnt hurt to be friendly.

 

[Jaz]

Hi Guys,

A little more on this point- Do you guys think it's better to pick out particular agents and ask for them directly (knowing nothing other than that they have sold properties in the area). Is it more effective than speaking to the admin/secretary or whoever picks up the phone at the branch? Who is most appropriate to speak to without being annoying?

Cheers,

Jaz

 

[Jake Milne]

Talking to agents will get you much better results than searching the internet.

 

[marg4000]

Attending open houses is also a good way of vetting agents.

If you have chosen an area then visit the open homes and chat to the RE agents. They have to stand there for half an hour or so and are usually happy to talk.
Marg

 

[Macca]

I usually talk to the agents, have a look at a few properties at OFIs with them, suss out the better agents then after each property tell them why you won't buy it.

They soon get the idea of what you want and will keep you in mind for the quick sales when they arise.

Very important to have your ducks lined up for finance etc, if they offer you a deal remember it is being offered to other hagglers as well so you need to know your stuff and be quick