I heard another story about real estate agents ripping off a client. It is worth considering this story, especially if you are thinking of selling, as it is not uncommon. The agent, who is well regarded, advised the seller of a potential sales price, lets say $900,000. The agent then sold an advertising and promotional package to the seller, at a cost of more than $20,000. The agent recommended an auction. The highest bid at the auction was about $700,000. The agent then bullied the seller to sell at that price. The seller refused, and the property did not sell. It is still on the market. The agent over-estimated the sales price to get the listing, and made a good profit from the advertising package. The seller is unhappy, as she would never have tried to sell the property if it was only worth $700,000.
Take care when an agent recommends an auction and an expensive advertising package.
Ask the agent to provide you with a CMA (Competitive Market Analysis) to justify the agent's view of the selling price, and get that in writing. Study it careful. And take care!
Recent quote from Warren Buffett: "It is a lot easier to buy than to sell."
Showing posts with label scam. Show all posts
Showing posts with label scam. Show all posts
Sunday, May 12, 2013
Real Estate Rort
The Courier Mail recently had a story regarding a real estate rort that is said to be ruining the lives of thousands. An extract:
"Using cold calls, home visits and high-pressure seminars, marketing agents ramp up fear of an impoverished retirement to push gullible mum and dad investors into buying investment real estate.
They promise a low weekly cost to negatively gear properties, high rents and the certainty of strong capital growth in suburbs well outside of the Brisbane CBD.
But many of the units and townhouses' capital growth has been largely absent, with most buyers only learning the sad truth if they go to list the property for re-sale.
Investors have also found their weekly costs are higher than expected, putting pressure on household budgets. Rents are often far less than predicted and supposed waiting lists of tenants never materialise...."
Monday, May 3, 2010
Beware of unlicensed offsite operators
The results of the recent Circle on Cavill lawsuit is a warning both to renters and apartment owners who use unlicensed offsite operators.
Tailly leased about 40 apartments in Circle on Cavill from owners, on a long term basis, for example, on one year leases. He then advertised the apartments for rent on the Internet on a short term basis. The Federal Court found that his websites were illegal, and shut them down. Tailly then went into bankruptcy. The apartment owners were not paid rent. The renters and holidaymakers lost their money and had no booking -- Tailly collected the money upfront at the time of booking, and then spent the money. Tailly was not a licensed real estate agent or travel agent -- just a tenant illegally subletting his apartments.
So if you are an apartment owner, make sure that you are using a licensed real estate agent and that you prohibit your tenant from subletting. (In this case, many of the apartment owners used real estate agents that expressly allowed Tailly to sublet!) If you are a renter or holidaymaker, it is best to deal directly with the property or use a reputable website such as Wotif.
If you are getting a too-good-a-deal from eBay, Stayz or a website that is not operated by a real estate agent or travel agent, then watch out! Not all websites are legitimate.
Another example is Paul Whitehead and his company, WorldTourism. Take care when booking with WorldTourism, to make sure you understand who you are booking with. See story on A Current Affair, and these newspaper stories.
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