I think everyone is annoyed the real estate industry regularly advertises properties for sale with a price range and the sale price is nowhere in the range. The reserve price is far above the advertised price range.
The explanation I was given for this type of price advertising by an agent decades ago, is the pool of buyers is like a pyramid. At the actual price wanted there is only a limited number of buyers. However as you go down in price the pool of potential buyers in the market increases. If you can get the interest of a larger pool of buyers, it may be possible to encourage some of those buyers to pay more.
What this means for most buyers is they waste valuable time and resources looking at property that may never have been in their price range.
Recent changes in the law to discourage under quoting (advertised prices lower than the price actually wanted) means there's now a better way to make an offer on real estate/property.
Always make your offer to the agent in writing (this also means email). If the offer is then rejected by the vendor and you get a response in writing (request a written response), the agent can no longer keep advertising below the price that was rejected. That means the advertised price has to be adjusted resulting in a more realistic advertised price.
If the agent continues to advertise the real estate/property below the price of a written offer/written rejection, then the agent can be reported to ASIC for review.
Keep in mind vendors do not have to consider any offer and may wish only to go to auction. It is also conceivable the agent may try to respond with the rejection verbally so it is not in writing, or not respond at all. There may be many ways for the agent to continue to advertise a price lower than the vendor will accept.
At least now by making a written offer and requiring a written response, there's a slim possibility advertised prices may adjust making it easier for buyers to only consider real estate/property within their budget, saving them considerable time and effort.
Kelvin Eldridge
The explanation I was given for this type of price advertising by an agent decades ago, is the pool of buyers is like a pyramid. At the actual price wanted there is only a limited number of buyers. However as you go down in price the pool of potential buyers in the market increases. If you can get the interest of a larger pool of buyers, it may be possible to encourage some of those buyers to pay more.
What this means for most buyers is they waste valuable time and resources looking at property that may never have been in their price range.
Recent changes in the law to discourage under quoting (advertised prices lower than the price actually wanted) means there's now a better way to make an offer on real estate/property.
Always make your offer to the agent in writing (this also means email). If the offer is then rejected by the vendor and you get a response in writing (request a written response), the agent can no longer keep advertising below the price that was rejected. That means the advertised price has to be adjusted resulting in a more realistic advertised price.
If the agent continues to advertise the real estate/property below the price of a written offer/written rejection, then the agent can be reported to ASIC for review.
Keep in mind vendors do not have to consider any offer and may wish only to go to auction. It is also conceivable the agent may try to respond with the rejection verbally so it is not in writing, or not respond at all. There may be many ways for the agent to continue to advertise a price lower than the vendor will accept.
At least now by making a written offer and requiring a written response, there's a slim possibility advertised prices may adjust making it easier for buyers to only consider real estate/property within their budget, saving them considerable time and effort.
Kelvin Eldridge
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