The Block Hampton; FAKE REALITY
I have always been a passionate consumer advocate when it comes to real estate buying. I initiated and continued the media campaign and lobbying government against underquoting in 2014 for 2 years, to finally see legislated changes implemented in 2017 and then revised in 2019.
But watching the auctions last night made me feel sick.
To see such a discrepancy between the quote ranges and the high reserves (declared 48 hours before the auction), while Consumer Affairs watched on at the auctions, was a disgrace. From a viewer’s perspective, it certainly looked like underquoting was going on, with a minimum $600k difference between the quote range and the reserves. Editing could have created the appearance of underquoting, so Consumer Affairs Victoria MUST publicly come out and confirm if they are investigating the potential underquoting and if not, explain why no one is being investigated.
Watching auctioneers pander to one single buyer, rather than take control of the auction process and command it, was laughable. Presumably their vendor instructions and their 'reality' was possibly to cater to that one special buyer, but at their own professional expense.
While I am commenting and given it is 2021, maybe the producers should insist on female auctioneers for a change. That might at least make it more relatable for 51% of the population.
Buyer’s agents legally represent their buyer and should have their best interests at heart. They DO NOT work for the vendor or selling agent and should not use the same tactics that selling agents use at auctions to push buyers to spend more money in the heat of the moment and under intense emotional pressure. There should be no desperate last minute phone calls and texts demanding more money.
I do not want to see ‘buyer’s’ agents’ behaving like selling agents and manipulating more money from their clients on the spot during an auction. It would be unforgivable. A buyer’s agent’s role is to take the stress and pressure away, not add to it.
As an industry recognised , multi award winning buyers agent, I am concerned that some ex-selling agents may not have 'unlearned' being a selling agent and/or not been formally trained as advocates, as they still transacted like selling agents. It was about doing ‘The Deal’ and not about the client.
To be fair, at least two advocates didn’t buy and consequently didn’t pay the overinflated prices that probably won’t stack up under the scrutiny of a bank valuation (Dave Hughes publicly declared and can attest to exactly that happening to him when he bought at the Brighton Block in 2020!)
Enough is enough !
If you are thinking of engaging a buyers’ agent, PLEASE consider the following:
- Many ex selling agents who become buyer agents are often unconsciously wired to transact – it’s all about overpaying to earn their fee and churning deals (clients). They frequently offer cheap fees, leave out necessary due diligence and do high volumes to compensate for not charging the appropriate fee for the job and due diligence they should be doing. You do not want someone representing you who will have you buy at any cost, has to 'win' or who spruiks about buying mainly (often compromised) property ‘off market’ or buying for you in only 30 days. These are sales statistics, not buying statistics and don’t apply to what is an advice driven consultative approach to buying real estate. I liken it more to being an advisor, than a real estate agent. Its about buying the right property at the right price with the right attributes. And that may take 2 - 3 attempts to secure the best outcome for a client.
- Engage a reputable buyers’ agent who is not ego driven, not driven by the ‘win’ , and who is balanced and humble. They will have your best interests at heart and concern for you, they won’t encourage you to buy at any price and they will advise you as the to the hard limit to pay for a property BEFORE the auction. They won’t bully you or manipulate you for more money during the auction. They will tell you when to walk away and to start again if its required.
- Only work with Independent Buyers agents who aren't linked to, or in bed with a sales agency. This is a blatant conflict of interest and a totally different skill set is needed for advocacy. They also won't get access to good off market properties, as no competing selling agency will want to work with them.
- As with any profession, make sure they can demonstrate a strong reputation, many years of real estate and buyer’s advocacy experience and be a REBAA member. FAKE BUYER’S AGENTS are rife and rising in the market as I write this, and they too are a significant danger to consumers.
- Read google reviews, ask for awards wins, ask them to prove how they will look after your best interests and not sell you down the river to move on to their next deal ... oops, I mean client.
- And remember, you get what you pay for. Always!
Author; Miriam Sandkuhler
REIV Winner 2021 Buyers Agent of the Year
Property Prosperity
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