“A dutch auction is not technically illegal however, some would call it unethical,” he said. “It’s not fine if the agent uses this as an opportunity to leverage buyers in ‘one-upping’ each other to nudge the price ever-higher.”īut Edge said it was important to remember the agent worked for the vendor, not the purchaser, so they would sometimes use whatever it took to get the best price for the vendor. “This is fine – if all parties are aware of what is going on, and they know they have a date by which to submit their best and final offer,” he said. Unofficial ‘dutch auctions’Įdge said a dutch auction was a verbal pre-auction, where the sales agent would receive multiple offers before the actual auction date.
“Ensure the price is based on a reasonable estimate, according to the market, and that the location, images and features listed about the property are accurate and not misleading in any way,” he said.
How do you avoid this?įind an agent who is open, honest and transparent with you, along with all parties involved and willing to disclose all facts about the property, Edge said. “It is a grey area but it can be very deceptive and misleading, as the agents are often trying to drum up more interest in a property, even though they know it will sell for more than the price they’re quoting in the current market,” he said. “You then find out from the agent that you have missed out on the property as suddenly they have taken a higher offer from another buyer.”Įdge said you should also be aware of underquoting auction price guides and potential sales prices for properties. “This is where you have an offer accepted and have signed the contract but then the agent stalls in getting the contracts exchanged,” he said. It can also cause problems for you later down the track, whether you are a purchaser or a vendor.”Įdge said a common deceptive technique was called ‘gazumping’. “By not disclosing all information, it can be misleading and deceiving. “Clients engage their services with large sums of money at stake, therefore the client should always feel they can trust and rely on their agent to be responsible and trustworthy during the entire process,” he said. Misleading or deceptive conductĮdge said real estate agents should always act in a manner that was honest and ethical towards all parties involved. “If you feel the agent is pushing you in a certain direction and not listening to your individual needs and goals, try getting a second opinion from another agent.” 2. “Seek advice from an accountant and broker to understand what is possible based on your current circumstances to understand the impacts as well. “You’ll know straight away, based on their response, whether they are acting in your best interests or not,” he said. He added that the best way to combat this was to ask directly if they would receive any commissions or payments based on the property you were looking to buy.
SNEAKY NINJA REAL ESTATE HOW TO
Here are a few things to look out for and how to spot it from a mile away. “Unfortunately, I’ve also seen how it has set buyers back for years.” “The consequences can be huge, as I’ve seen people lose money, spend their savings where they could have bought a property for better value or pay too much for a property,” he said.
Unfortunately, the real estate industry is no exception.”Įdge said buyers could incur major losses if they got caught out by someone who wasn’t keeping their best interest at heart. “However, most industries also include unethical and not-so-trustworthy professionals that don’t always have their clients’ best interests at heart. “All industries have ethical and trustworthy professionals … who are genuinely passionate and want the best outcome for their clients’ individual needs and circumstances,” Edge said.
SNEAKY NINJA REAL ESTATE PROFESSIONAL
Lloyd Edge, director of Aus Property Professionals: Buyers Agent, said it was important to make sure you picked the right professional to help you.Īlso read: 13 suburbs where you can buy a home from $260,000Īlso read: Up $250 a week: 20 suburbs where it’s impossible to rentĪlso read: 6 property market forecasts and predictions for 2022 (Source: Getty)įor many Aussies, buying and selling a home may only happen a couple of times in their lives.īut what if your real estate agent is looking after their own best interest instead of yours? Real estate agents have been known to use some tricks that may be seen as unethical.
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