Society/Culture Australian Property Prices to Crash?

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Norm Smith Medallist
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I'm not sure about other states but I'd assume they'd have similar rules. In VIC under the underquoting rules, if you submit an offer above the range that is taken to the vendors and not accepted then they must update the advertised range.

So if a house range is 500-550k and you offer 555k and its knocked back, they need to update the range by law or you can report them. I encourage people to report them whenever this is the case. Its the only way agents will stop this.
Relax and then make another offer. Lower.



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Golden_6

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I'm not sure about other states but I'd assume they'd have similar rules. In VIC under the underquoting rules, if you submit an offer above the range that is taken to the vendors and not accepted then they must update the advertised range.

So if a house range is 500-550k and you offer 555k and its knocked back, they need to update the range by law or you can report them. I encourage people to report them whenever this is the case. Its the only way agents will stop this.
What do you mean by update the range though? In these scenarios, the vendors aren’t sitting back and waiting for a better offer above the top end range. It seems to be most houses are receiving offers well over the top range within a week and selling well above pretty much straight after.

When I was looking 12 months ago, it seemed to be happening weekly where houses would pop up with first inspections due on the Saturday, but never actually made it to that point. They were being sold above the top range within days of hitting the market and no public inspections.
 

darcytiger

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I reported a real estate company to Consumer Affairs a few months ago.

Basically, the property was advertised at $680-740 in Forest Hill, Melbourne. The house ended up selling for $980, which was in line with comparable properties in the area. Within the last 2 years nothing of a similar type and size had sold for less than about $850. She said the reserve was $780, which is above the top range of the price guide.
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Report to consumer affairs took me about 5-10 minutes. More people should do this as it happens way too often and is a waste of everyone’s time especially newer buyers who have not much more to go on than the agents price guide. After months of looking and turning up to these under quoted joints you work out what they will go for but it’s still very annoying.
 

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juss

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What do you mean by update the range though? In these scenarios, the vendors aren’t sitting back and waiting for a better offer above the top end range. It seems to be most houses are receiving offers well over the top range within a week and selling well above pretty much straight after.

When I was looking 12 months ago, it seemed to be happening weekly where houses would pop up with first inspections due on the Saturday, but never actually made it to that point. They were being sold above the top range within days of hitting the market and no public inspections.
Ah okay. That's a different issue than what I've been experiencing. In terms of updating the range, I mean the advertised price online. E.g if it says Auction 700-750k and they take your offer to the vendor at 751k and the vendor knocks it back, then the range by law needs to be updated online to say 725-775k for example. One of the issues is new homebuyers are priced out and ending up spending too much money even on things like building inspections etc on houses they have no realistic chance on because of the underquoting. It wastes everyone's time but it benefits the agents and seller at auction.
 

juss

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I reported a real estate company to Consumer Affairs a few months ago.

Basically, the property was advertised at $680-740 in Forest Hill, Melbourne. The house ended up selling for $980, which was in line with comparable properties in the area. Within the last 2 years nothing of a similar type and size had sold for less than about $850. She said the reserve was $780, which is above the top range of the price guide.
View attachment 1062063View attachment 1062064

Report to consumer affairs took me about 5-10 minutes. More people should do this as it happens way too often and is a waste of everyone’s time especially newer buyers who have not much more to go on than the agents price guide. After months of looking and turning up to these under quoted joints you work out what they will go for but it’s still very annoying.
Correct. Well done. I'm going to start openly calling out agents at open for inspections when it is clear the range is well below what the realistic selling price will be. Once you've been to a few you know when the advertised range is total bullshit. Its designed to attract interest and hype and with emotional bidding it helps drive up the price. Its also costing potential buyers unnecessary money and wasting time.

Also, some agents are dodgy as fu**! I've had agents literally lie to my face and argue with me in front of others around the land size on title and what you own vs the other title, they were basically saying you could fence off this whole area and use it as your private courtyard or dual parking space which you couldn't because it belonged to the other title on the site, then when I called them out with the section 32 and asked them why does it say that here on the subdivision they said oh you need to check with your conveyancer we can't answer.
 

darcytiger

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I still don't understand why people use agents.
Well as the vendor, them using all these sneaky little tricks is trying to get the most money for you (and them).

I do sort of agree though, especially at the moment with it being so hot. Surely it’d cost you less to just use a conveyancer and pay for a Facebook advertising campaign yourself. Surely would save you thousands.
 

Deliverance

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Well as the vendor, them using all these sneaky little tricks is trying to get the most money for you (and them).

I do sort of agree though, especially at the moment with it being so hot. Surely it’d cost you less to just use a conveyancer and pay for a Facebook advertising campaign yourself. Surely would save you thousands.
LOL if you think they're working for the vendor.

The difference in commission for an agent between 800k and 820k is fu** all. If they don't make the sale, they lose out big time.

They're most likely spending their time bring down the vendors expectations than bringing the buyers up.
 

The Dice Man

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When we bought our house last year there were 2 different agents selling the property. Our agent dropped her commission in order for us to be able to buy at a lower price. Two agents competing to sell helped us.
 

The Dice Man

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Listing with two agents is one of the bigger mistakes you can make.
It worked to our advantage in this case, as the buyer. The seller wanted a quick sale and accepted our (unders) offer within 24 hours. They would receive later offer over 40k of their original price. The owner had died and the 2 families who inherited it just wanted the money fast.
 

HirdsTheWord

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I reported a real estate company to Consumer Affairs a few months ago.

Basically, the property was advertised at $680-740 in Forest Hill, Melbourne. The house ended up selling for $980, which was in line with comparable properties in the area. Within the last 2 years nothing of a similar type and size had sold for less than about $850. She said the reserve was $780, which is above the top range of the price guide.
View attachment 1062063View attachment 1062064

Report to consumer affairs took me about 5-10 minutes. More people should do this as it happens way too often and is a waste of everyone’s time especially newer buyers who have not much more to go on than the agents price guide. After months of looking and turning up to these under quoted joints you work out what they will go for but it’s still very annoying.
there is not a real estate company in existence that doesn't do this sh*t.

they get away with it because it is almost impossible to police.
 

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Frank Grimes

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there is not a real estate company in existence that doesn't do this sh*t.

they get away with it because it is almost impossible to police.
I think they all do it to some degree, however when I was looking at houses over a decade ago I found that some are worse than others.

I quickly figured which ones were regularly BS. After a month or two looking around I figured "real" price range of the properties around the area and knew the price they were likely to go for.

As a result I knew when I saw an advertisement much lower than expected, it was either under quoting or there was a major defect with the property they were not letting on until you visited it or inquired more about it.
 

HirdsTheWord

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I think they all do it to some degree, however when I was looking at houses over a decade ago I found that some are worse than others.

I quickly figured which ones were regularly BS. After a month or two looking around I figured "real" price range of the properties around the area and knew the price they were likely to go for.

As a result I knew when I saw an advertisement much lower than expected, it was either under quoting or there was a major defect with the property they were not letting on until you visited it or inquired more about it.
all you literally have to do is log onto Realestate.com or Domain.com and see what proportionate houses are sold for in the area recently. Usually you will see Real Estate agents list 10% below that price.

Obviously in some situations 2 keen buyers to push it up beyond, but generally add 10% to the "price guide" and you'll generally be there abouts.
 

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all you literally have to do is log onto Realestate.com or Domain.com and see what proportionate houses are sold for in the area recently. Usually you will see Real Estate agents list 10% below that price.

Obviously in some situations 2 keen buyers to push it up beyond, but generally add 10% to the "price guide" and you'll generally be there abouts.
If I look at recent sales in my area 80-90% of them are 'Contact Agent'. Selling agents don't want all sales being easily available to everyone, they want that information in house so they can spin it to suit their purpose. They play all sorts of games with price ranges. They might list something at $500k+ expecting $600k, and they might list something at $600k knowing they will only get something starting with 5. Friends of mine listed with an agent who talked a big game about the value of their house and they got nowhere near the initial appraisal. All the agent wants is the sale and the commission. Selling two houses quickly for $500k each makes you a lot more money than selling one house slowly for $600k. Other friends have mine have a 2 bedroom house on a subdivided block. It's a character cottage on about 300sqm now and I'm guessing worth about $600k. Valuations vary significantly whether you lump it in with other properties 300sqm and under, and other properties that are 2 bedroom (units, apartments etc) compared to other character homes in the area. Agents will try and spin it whatever way suits their purpose.

Agents aren't legally allowed to negotiate (under offer) with multiple buyers or disclose details of offers to other buyers. If I offer $500k and there are offers for $490k and $510k all I am going to be told is there are multiple offers and I should offer more. Hell if I am the only offer I will probably hear that. Once a place is under offer and a negotiation is taking place between the buyer and seller the agent is supposed to only talk to those parties. If my offer of $500k is presented and there is a counter of $525k etc. and someone offers $550k the agent can't present it, but will absolutely tell the seller on the sly.

It's a nothing industry full of people who add no value. My house was built pre-WWII. No idea what the land or building cost, but I'm guessing in the hundreds or low thousands of pounds. And it would have been bought and sold a few times before I came along in the late 2010s. The smug w***er agent (in his late 40s or 50s I'd guess) who sold it to me didn't survey the land, didn't build it, didn't renovate it, didn't buy it in the 80s or 90s and hold it as an investment... he didn't even take the photos of it to put on the internet. But struts around like he is pivotal to the whole process and walks away with a fat commission cheque.

I'm a fan of open negotiation. Effectively a slow paced online auction where you can see a real, live price. I've looked at a couple of places that were around my range and some stayed there and some went higher. I'd much rather look at an ad seeing that someone else has offered $672,000 than have some vague range of $650,000-750,000 and an agent telling me he has 'received offers'.

Our agent dropped her commission in order for us to be able to buy at a lower price.
I've bought two houses in my lifetime and heard that sob story twice. I choose to ignore anything agents say. If a price of $x is accepted then I don't care if the agent makes 10% or 0.1% commission. Obviously I'd prefer it was the latter, but that's an aside.
 

Deliverance

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Few analysts starting to raise the prospect of interest rates rising in the next few months. Sensationalist reporting, or some truth in there?
Been on the cards for a while. Sleepy Joe is delivering huge stimulus. T10 yields are already on the rise. If inflation kicks in, the fed has no choice but to raise. If they raise, the Reserve Bank has no choice but to raise.
As per the Oracle, we may be about to find out who's been swimming naked.
 

HirdsTheWord

OH WE'RE FROM DIVER LAND
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If I look at recent sales in my area 80-90% of them are 'Contact Agent'. Selling agents don't want all sales being easily available to everyone, they want that information in house so they can spin it to suit their purpose. They play all sorts of games with price ranges. They might list something at $500k+ expecting $600k, and they might list something at $600k knowing they will only get something starting with 5. Friends of mine listed with an agent who talked a big game about the value of their house and they got nowhere near the initial appraisal. All the agent wants is the sale and the commission. Selling two houses quickly for $500k each makes you a lot more money than selling one house slowly for $600k. Other friends have mine have a 2 bedroom house on a subdivided block. It's a character cottage on about 300sqm now and I'm guessing worth about $600k. Valuations vary significantly whether you lump it in with other properties 300sqm and under, and other properties that are 2 bedroom (units, apartments etc) compared to other character homes in the area. Agents will try and spin it whatever way suits their purpose.

Agents aren't legally allowed to negotiate (under offer) with multiple buyers or disclose details of offers to other buyers. If I offer $500k and there are offers for $490k and $510k all I am going to be told is there are multiple offers and I should offer more. Hell if I am the only offer I will probably hear that. Once a place is under offer and a negotiation is taking place between the buyer and seller the agent is supposed to only talk to those parties. If my offer of $500k is presented and there is a counter of $525k etc. and someone offers $550k the agent can't present it, but will absolutely tell the seller on the sly.

It's a nothing industry full of people who add no value. My house was built pre-WWII. No idea what the land or building cost, but I'm guessing in the hundreds or low thousands of pounds. And it would have been bought and sold a few times before I came along in the late 2010s. The smug w***er agent (in his late 40s or 50s I'd guess) who sold it to me didn't survey the land, didn't build it, didn't renovate it, didn't buy it in the 80s or 90s and hold it as an investment... he didn't even take the photos of it to put on the internet. But struts around like he is pivotal to the whole process and walks away with a fat commission cheque.

I'm a fan of open negotiation. Effectively a slow paced online auction where you can see a real, live price. I've looked at a couple of places that were around my range and some stayed there and some went higher. I'd much rather look at an ad seeing that someone else has offered $672,000 than have some vague range of $650,000-750,000 and an agent telling me he has 'received offers'.



I've bought two houses in my lifetime and heard that sob story twice. I choose to ignore anything agents say. If a price of $x is accepted then I don't care if the agent makes 10% or 0.1% commission. Obviously I'd prefer it was the latter, but that's an aside.
like all industries there are good agents who play by the rules but unfortunately most of them are absolute snakes.

They knowing list it low and then boast about how good they are for selling over the reserve.
 

Pessimistic

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I reported a real estate company to Consumer Affairs a few months ago.

Basically, the property was advertised at $680-740 in Forest Hill, Melbourne. The house ended up selling for $980, which was in line with comparable properties in the area. Within the last 2 years nothing of a similar type and size had sold for less than about $850. She said the reserve was $780, which is above the top range of the price guide.
View attachment 1062063View attachment 1062064

Report to consumer affairs took me about 5-10 minutes. More people should do this as it happens way too often and is a waste of everyone’s time especially newer buyers who have not much more to go on than the agents price guide. After months of looking and turning up to these under quoted joints you work out what they will go for but it’s still very annoying.
Slippery suckers. They’ve got a few stories ready to go I see
 

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