There are plenty of things to consider when purchasing or selling your home. These are the tricks that you should be aware of when engaging with Real Estate Agents. Below are some things to consider in “Blind Bidding” :-

No Offers
Rule : In Victoria, agents must not advertise a property for a lower price than a previously rejected offer.
Loophole : The way around this is that the Agent may state that the “vendor advised that they are not taking any offers”.

Fake the price
Rule : In Victoria, agents must not advertise properties for lower than the estimated sales price in their agreement.
Loophole : Vendors encouraged to execute an Agency Agreement with incorrect sales price, normally at a lower estimated price to encourage more potential buyers who are at the lower end.

Don’t Ask, Don’t tell
Rule : Agents must not list a home for lower than the owner’s reserve price.
Loophole : Agents encourage owners not to set a reserve price until shortly before the auction.
Agents are well trained in communication skills to win the seller on an underquoting strategy they would provide property appraisals. Do your research on the Agency and the Agent.

Compare Apples with Oranges
Rule : Victorian agents must in most cases take into account three comparable property sales
Loophole : Agents may select inferior properties to the property being marketed to achieve a “low ball” price guide. Agents change the selling range during a campaign after viewing weekly auction guides. Therefore, as a potential purchaser, always seek your own Due Diligence with property sales and compare Apples with Apples.

As a broad-spectrum guide, take the top of the agent’s listed price range and add between 15% to 20%. This may assist you in determining if you are in the “ball park”.

 

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