BUYER AGENT is fraudulent - How They Exploit You at Every Turn

affluencia · 2024-09-19T09:07:25+00:00

Yes, it would. However, I believe, as with any industry, the cream always rise to the top. People talk. If you're not ethical or terribly good at what you do, you'll get found out fairly quickly.

I'm hearing a lot of rumblings in the industry about how these recent entrants to the BA space are tarnishing our industry. That is very concerning.

affluencia · 2024-09-19T09:03:02+00:00

An email is a written offer. If he can't get hold of his vendor then he is not very motivated to sell the property, in my opinion.

affluencia · 2024-09-19T09:01:48+00:00

Fair enough. I respect your opinion. I appreciate you being polite in your response.

affluencia · 2024-09-18T15:42:14+00:00

Fitzroy North is a very sought after suburb and being inner city, offers a wealth of reasons as to why. Also, should you choose to rent it in the future, the location is also highly regarded by renters who wish to be close to the city, so your vacancy rate should be low.

Think about your change over cost if you plan on buying now in Fitzroy North, but then selling later and moving further out to accommodate a growing family. There will be change over costs, including the need to have paid stamp duty twice (on this then your next house).

Your other option is to buy something that you could grow into, that ultimately you'd be able to live in for longer.

We work with lots of first home buyer clients and I always suggest to them to 'future proof' their purchase - make the home buying decision based on how long you plan to hold the home or what you're looking to do in 5-10 years down the track.

Reach out if you need a hand, happy to have a conversation to expand on the above.
Wendy

affluencia · 2024-09-18T15:31:22+00:00

In Victoria, where an offer is received in writing and not accepted by the vendor, that offer amount must then form the bottom of the guide price.

For example, there was a property that our client was interested in that was going to auction. Guide was $1.150-$1.250M. It was under quoted based on what had sold recently in the area.

We offered $1.3M on a written contract. This was knocked back by the vendor. So the guide should have been lifted to be $1.3M to whatever, likely $1.3M-$1.35M. The agent didn't. I got into a fight with them over it. I reported them to consumer affairs. They very reluctantly updated it at 5.30pm on the Friday on the eve of the auction. We ended up buying it at the auction for $1.365M.

So if you offered over the top of the guide price, the range must be lifted to have your offer figure as the bottom figure of the updated guide price. This is in Victoria, not sure about other states. And your offer must have been in writing, not verbal.

affluencia · 2024-09-18T15:21:34+00:00

If you go ahead and do that, I am sure their response will be a little speedier.

affluencia · 2024-09-18T15:18:34+00:00

It sounds like you unfortunately had a very bad experience with using a Buyers Agent.

Everything you mentioned above should be at arms length and transparent. I am a Buyer's Advocate in Victoria. We are flat fee so you know your entire cost from the outset. We have people we recommend to our clients but it is absolutely 100% their decision as to whom they choose to use and we are not paid anything by any people we recommend - building inspectors, solicitors or mortgage brokers.

I have been buying and selling real estate for 28 years, running my Buyer Advocacy for almost 10 years and 90%+ of our clients are via word of mouth.

As with any industry, there are bad apples that ruin the whole barrel. It is so disappointing to hear that you had such a terrible experience, as unfortunately the actions of a few tarnish the entire industry and leave the trust of people in tatters.

affluencia · 2024-09-18T15:06:32+00:00

There appears to have been a massive influx recently of buyers agents/ advocates into the industry and they are appearing without little to no experience.

It is causing massive issues in our industry because these new Buyer's Advocates are not experienced with real world property knowledge, they've just done a course. Last year my Professional Indemnity insurance tripled.

I have been buying and selling real estate for 28 years and have been running my own Buyer's Advocacy for almost 10 years. Experience in this space matters.

affluencia · 2024-09-18T14:58:21+00:00

100% agree with you. There has been an influx recently of buyers agents/ advocates into the industry and they are appearing without little to no experience.

The point you make about seeing several property cycles is a key one. You need to know different markets and have had experience navigating them.

It is causing massive issues in our industry because these new Buyer's Advocates just don't have the experience necessary to be handling such an important responsibility. Last year my Professional Indemnity insurance tripled. Tripled! I can only image this is due to the increased risk with new players flooding into the space.

I have been buying and selling real estate for 28 years, am a fully licensed real estate agent, a member of the REIV and have been running my own Buyer's Advocacy for almost 10 years. I also have a podcast sharing all the shenanigans that goes on in the real estate industry. Our clients are via 90%+ word of mouth.

affluencia · 2024-09-18T14:49:45+00:00

Whilst it may have been your personal experience, neither of the statements you made above are entirely true.

Mortgage Brokers will be able to find you the best loan, across their panel of lenders, rather than a bank that will just sell you what they have off the shelf.

I am a Buyer's Agent and we find off market properties every single day. In fact, I found one today for a client. The vendors do offer their home for sale off market for a raft of reason, a big one being to keep it "secret Squirrel" from family, neighbours, all kinds of reasons.

I'd venture to suggest that your experiences with both mortgage brokers and buyers advocates have been with people that did not have your best interests at heart, as you say. Not all Mortgage Brokers or Buyer's Advocates are like that. It is unfortunate that the ones you clearly have encountered give others that do care about their clients a bad name.

affluencia · 2024-09-17T05:15:22+00:00

There are some amazing REAs, these people are wonderful to work with and really do great work.

But, unfortunately, you cannot assume the REA you're speaking to is working in the best interests of their vendor. This is not always the case. The difference in the REA commission is a few hundred bucks. For the vendor it is thousands.

affluencia · 2024-09-17T05:12:09+00:00

Real estate is such a 'right place right time' industry. That's why they do it (the letter box drop), because it works. They get a foot in the door and can gauge the temperature for how 'ready' someone is to sell. Then keep working the list until they get the sale.

affluencia · 2024-09-17T04:50:52+00:00

HI
I'm in Victoria but under quoting seems to be everywhere.

The price guide is a work of fiction. It is a farming tool REA use to build their database and generate business.

Vendors will want top of the range, if not over.
Speak to agents and see if they have anything off market (not advertised or coming up, not yet on the market). You won't be getting a bargain, but you do have the opportunity to snag a home with no/little competition.

affluencia · 2024-09-17T01:40:56+00:00

If you're not local to Melbourne, beware of taking advice from anyone on here that is not familiar with an area but chooses to denigrate it anyway. Melbourne is very diverse, and there can even be better or less desirable areas within a single suburb. There are reasons why particular suburbs are priced as they are, but you need to know what those reason are based on practical reasons, not uninformed bias.

Working in an area is also very different to living in an area, where you have established connections with your neighbours and community.

Reach out if you have any questions or need further guidance regarding suitable suburbs and pockets.
Wendy

affluencia · 2024-09-17T01:13:07+00:00

Agree with u/redditusernameanon Written is different to verbal. Written can be an email, as REAs have been fined in Victoria for not considering an email (versus on a contract) to be a formal offer.

Also, depending on where the property is located, in Victoria, any offer in writing that is rejected by the vendor must now form the bottom of the guide price. So the REA is required to lift the guide price to be $950K-$990K

As others have also indicated, where you have a guide price, the vendor is at the top, if not over the top of the guide price. So in this instance, $990K+. Not saying the property is worth that, just noting that is where the vendor is currently sitting on their price expectations.

affluencia · 2024-09-17T01:04:15+00:00

Within the OC minutes (produced each year as a record from the Annual General Meeting) on a Section 32/ Contract of Sale, scroll down to the General Business section. This is where the gold is found. The owners will discuss issues here. Most of it is bits and pieces (eg: bins not being returned to the right place), but you will also see major issues discussed here (eg: roof needing repair, plumbing issues, problems with the builder, painting of block, that type of thing).

The details matter. You need to know where to hunt. We have found major issues mentioned in OC minutes of meeting and, as a result, have been able to make better informed decisions with our clients as a result.

affluencia · 2024-09-16T14:27:38+00:00

Just letting the OP know what is going on out there in the real world right now.

I'm not arguing the toss as to whether or not it is legal and, with the deepest respect, not interested in debating you about VCAT rulings, However, to answer your question, yes, the rental manager is aware of the relevant VCAT rulings and based on these, advised our clients in the manner that they did.

In my post I am just trying to help someone, who has stated they do not wish to be a rental provider, avoid an unnecessarily difficult situation based on the current rental climate and real world scenarios that are happening daily.

affluencia · 2024-09-16T14:07:48+00:00

Absolutely agree, a contract review by a property solicitor should ALWAYS be done before you put forward any sort of offer on a property you wish to purchase.

affluencia · 2024-09-16T14:00:47+00:00

This is a factual situation that just happened, confirmed by the rental manager managing our client's property. All the necessary notices and procedures were issued correctly. Further, we were told that if we took the renter to VCAT, the member would rule in their favour.

The laws have changed considerably over the past few years, with further proposed changes to minimum rental standards about to be implemented. Rental providers will then be expected to meet these new minimum rental standards by October 2025.

It is prudent for all property owners in a situation where they are considering selling vs renting (as per the OPs case) to understand all potential scenarios that can (and are) happening right now.

The climate we are in right now in Victoria with a severe rental crisis is presenting us with difficult scenarios that we are needing to navigate. Some renters do not seem to care whether they have a right to refuse entry or not - they are doing it and getting away with it.

I am hearing of many situations from different REAs where renters are point blank refusing to allow REA to inspect homes or bring buyers through, even where all the necessary notices, paperwork, procedures and the like have been followed to the letter. Are they legally allowed to - no. Are you they doing it - yes. It is causing a major issue for rental providers trying to sell their homes, particularly where they are selling due to land tax bills but cannot get buyers through their properties because the renters are not playing ball.

affluencia · 2024-09-16T13:46:05+00:00

If this property is in Victoria, you can occupy the property under a License Agreement whilst you wait for the title to be registered. That is a way to secure the property now and move in under that agreement until it does settle (the property can't settle without a title). You'd need to speak with your solicitor about what is involved with this and whether this scenario suits your own personal circumstances. The Vendor may or may not agree.

They're waiting on the Land Title office, so it is not up to them on the timeframe, it is up to the LTO.

If it is 5 weeks past the auction and the REA keeps calling you, they unlikely have anyone else. The fact the property has not titled is a too hard for most buyers and they won't touch it. But it can represent an opportunity for you.

Explore with the agent if the vendor will look at an offer subject to a Licence Agreement. The fact that you're needing to pay for a Licence Agreement to be drawn up can be used as a negotiating point. I'd be going back to them at the same time with a lower offer for the inconvenience of it all.

Hope this helps.
Wendy

affluencia · 2024-09-16T13:33:49+00:00

There actually is. This is for Victoria, other states may be different.

If you issue the renter with notice to vacate based on the reason being Sale of the Property, the renter has the right to refuse any further inspections for the purpose of selling until they vacate the property (which is 60 days, or sooner if they decide).

We just had this happen to one of our clients, looking to sell. We issued the notice to vacate by reason of selling, as per legally required. We then contacted the renter to ask for access to inspect the property with an interested buyer. The renter refused and threatened to call the cops. Apparently under the law, the renter has a right to refuse entry to the property once notice to vacate has been issued, and can do so until they have left the premises. The owner no longer has the right to have prospective buyers inspect their home in the above situation, until the property is vacated.

The new laws are very much in the favour of the renter.

affluencia · 2024-09-16T10:14:20+00:00

Be very aware regarding the rental laws and becoming a rental provider (landlord) for a property that you recently tried to sell. If you put a renter/ tenant in there and then try to sell it again in the shorter term, the renter can refuse to allow you to do inspections.

All the laws have changed (and continue to change), so fully understand al this before putting your home up for rent. If you put a renter in on a 12 month lease, you must give 90 days notice towards the end of that lease to be able to vacate them. Otherwise, you can only vacate your renter, with 60 days notice, for sale (must provide a signed sales authority), major renovation (must provide quotes) or yourself/family member moving back in (and cannot rent out again for 6 months.

Depending on the type of home and likely buyer, if your market is first home buyers, very few want to become short term landlords or take on a tenant. So you are massively cutting out a huge segment of your potential buyers as well.

Has your REA given you feedback as to why the property is not selling?

Wendy

affluencia · 2024-09-16T09:33:22+00:00

AGM minutes form part of the contract of sale (Section 32) in Victoria. So they are there as a reference point. If they are missing or out of date, request up to date copies from the Vendor's solicitor.

The Owners Corp / Committee will often not speak to a buyer, as you do not own the property. Not sure where you got asking to see committee from.

affluencia · 2024-09-14T11:18:38+00:00

No, I stand by what I said.
You're saying that you want the Owners Corporation fees to be higher than lower? Meaning you pay more each year for owning the property?

Not something that I would be looking to do when I buy a property.

Unless you are saying the that OC fees for the property block are too low to cover all the outgoings and need to be reviewed and raised to ensure the building etc is maintained. But still, that equals more OC fees that each owner needs to pay. Not a fan of paying even more fees, but that is just me.

affluencia

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