Why Real Estate prices are so high.

http://www.msn.com/en-au/news/austr...times-the-annual-income/ar-BBnqye7?li=AAavLaF

Nothing to do with real Estate agents is it.......naaahhh....

 

Anyone see the Block results... they are all the same apartment basically with all the same view, yet people are willing to spend hundreds of thousands of dollars to get the top or second floor. This highlites a central point in understanding the factors causing agents to act in a way which everyone sees as unethical...

The problem for agents is the seller wants the highest price, the buyer wants the lowest price, and both the seller, buyer and agent want it to sell, because if it doesn't sell the agent gets nothing and has done all that work for free. So if you can get your head around how hard it is to make two people moving in different directions meetup and agree on the price just to get paid, then also consider just how unpredictable the buyers are, as evidenced in the Block auctions we have people willing to spend huge amounts of money for the silliest of reasons. Every property and every buyer has their own unique silly little reasons. All those variables mean the agent cannot operate in the realm of truth and sincerity because its all unknown and too volatile - ALL the agent can do is create conditions to assist the buyer to move up in price and the seller to move down in price.

That is all they can do and so its stupid to complain about it. If you read into their suggestions more then is actually being said then its on you, not them.

But if you want to complain about illegal conduct then I will agree with you.

If you don't like that fact that they cannot operate with a code of conduct, then you'd have to perhaps outlaw open listings. As currently if its an open listing agents will do whatever it takes to get the business. If you think agents are bad to buyers and sellers you have not seen what an agent will do to another agent to steal the commission!!!!!!! Unfortunately, if you made open listings illegal then I think we'd all be worse off as people would be more demanding on the agent to perform faster (else they'll go to another agent) which means the agent will do the same stuff because the reason they do it in the first place is to try and make a sale happen.

As mentioned previously, if your more interested in getting a particular price then getting a sale, you can tell the agent that but you will have to accept it might not sell for a few years or decades at that price. The best way to have a nice experience with a real estate agent is to have a realistic price expectation.

Anyway, housing bubbles do exist IMO but they are more like surf waves at a beach then bubbles. The only people who drown in the surf of the property market are those who don't watch the waves - and the only 'bubble' is the gasping of air as they sink under the surface. Unfortunately most people do not watch the waves, and even less have the capacity to swim. The banks are the ocean I guess

 

Actually no, it isnt. It says buyers might run the risk of using debt to finance deposits on more debt to try and cash in on rises in markets. Nothing new about that, but that is between the buyer, the bank and the financial advisor - not the real estate agent.

Are you saying agents are inflating property prices to make a market rise so that people get more active in the property market so that agents can get more commissions, and therefore are responsible for people making bad financial commitments in the process!??!? Wow, that is a stretch. An agent pushes prices up for the seller but they will only push it up as much as the buyer is willing to decide to go - as if the sale does not happen the agent gets nothing. The agent would rather a low sold price then no sold price.

 

This from the Consumer Act;

Part 2-1 Misleading or deceptive conduct

Section 18 - Misleading or deceptive conduct
(1) A person must not, in trade or commerce, engage in conduct that is misleading or deceptive or is likely to mislead or deceive.

Note you do not have to actualy mislead or deceive someone, you break the law if you do or say something that is likely to deceive or mislead.

 

Nothing about a vendor's bid is misleading or deceptive. Everyone at the auction would know what has happened. Been to several auctions, vendor's bids have been mentioned before the auction, but I have not seen one made.

If it was illegal many real estate agents would have been prosecuted for this. As they have not been, it is legal.

House prices are high, but not for this reason.

 

I know, that's the trick... what they say is usually true in particular interpretations but they do not specify the details because its either unknown and cannot be proved, or illegal (at least I think its illegal to run a dutch auction in some places here). Unless they are a bad real estate agent, what usually happens is they will only say what they can get away with saying. So if you tried taking them to court about acting to deceive they already know they can get out of it.

 

AT, My eyes are rolling that much I must be looking like this emoticon These people are rogues, no better than second hand car salesman!

 

It's the banks and lawyers which are worse.

 

If some dumbarse Aussies want to pay $1.7 million for a unit that's been advertised on a TV program, then who cares. Just demonstrates how stupid they are.

As soon as the unit was sold and the TV cameras stopped filming, $700K would have been wiped from the real value of the property. The owners made a good profit, but the dumbarses buying it, just paid $1.7 million for a unit that was really valued at $700K.

Dumbarse Aussies

We made a small fortune buying and renovating ex-housing commission homes in the early 1990's.

Dumbarse Aussies were to laze to buy the properties really cheap and do them up for themselves. We made a killing on them. We tripled our overall costs on every property after sale.

 

We're talking real estate agents, banks are another issue! There are another clat of worms squirming to break loose over this issue!

 

Its no use blaming other people for dumbarse Australians who are willing to $700K for a property that only cost $400K to build new.

If dumbarse Australians want to pay double for something that's secondhand and 15 years old, then why blame other people for them buying it?

 

Stop paying $700K now for a house that only cost $400K to build 15 years ago. Houses "date"really quickly, and don't command their value increase.

 

Went to a couple of auctions on Saturday and saw an over valued place sell for $1.3m
Nearby another place went for $1.7m..similar styles of house but with the exception that
the $1.3m place was a dump...you would have to knock it down and have a build of less than
$400K to beat the $1.7m sale...(it was a beautiful home)....
Why would you not buy the more attractive home...
Because at each auction, the underhanded tricks of the auctioneer, conferring with vendors
during the auction, telling straight out lies to the bidders creates more bidding...
What a joke...
Auctions are nothing but extremely well rehearsed charades...nothing but charades......
Exact same lines at every auction...right down to the clever pauses and innuendos.....
Designed to heighten anxiety amongst bidders...designed to increase the euphoria of the
environment....just charades full of lies and deceit....
Even to the extent that the listing agents walk from one bidder to the other and back as
the bids go up in an effort to get a higher price by telling more (overheard) lies......
How can an agent have any integrity if he goes from buyer to buyer saying the exact same thing...
"He's beginning to weaken...I think you've got him...its a beautiful home...he's just about done...
one more bid will do it...."
Puleeeezz.....its almost laughable.....

 

Only because they forget who agents are working for... and don't understand the agent's job is to get them to pay more by any legal means. I guess its so easy because everyone is all special snowflake and think they are so entitled these days. The real question is why are people willing to participate in handing over hundreds of thousands of dollars without having a clue about the process.

 

Pft....why dont you address the question of their integrity for a change instead of jibbering about nothing....

 

It's not like going down to the local supermarket and buying products that you would buy everyday. People just don't absorb themselves in all the complexities and tricks of buying a house for maybe a once in twenty year event, especially people who just want to buy a home to "live" in and not use it as an investment to turn over a quick buck. It should be a completely straight forward transparent dealing.

Yes, you get as much money as you can but dang, it should be done without deception. I don't really know how people can be satisfied with their life by screwing someone over. I might be old fashioned or whatever it is, but I'd rather throw my unwanted couch to someone in need then try and get a few bucks for it. The sensation of doing a good deed surpasses many good feelings. Unfortunately the world today for some people is about who can screw over the next person the most and get away with it.

 

Most are just not really ready to operate in that realm I guess. I mean they didn't earn the money they are spending so its not like most have the business experience in getting or operating with that much money - so I guess its not wonder so many expect it to be like buying groceries LOL. Ignorance is no excuse, buyer beware is a lesson even people at grocery shopping level should know.

 

And you continue to skirt around the real subject...the way the sales are conducted....
Youre a jibberer mate...nothing more, nothing less.......

 

That is because I answered that in the earlier reply. If people want to ignore that and keep complaining, I'm happy to keep addressing it. I"m not the one complaining. Perhaps define jibbering, it is a discussion forum after all.

What don't you get about it being based on the legislation and how a code of conduct is impractical? Business is about negotiation, and negotiations revolve around comprimises - so the agent must explore ways to create comprimise. Do sellers tell the agent the truth about their intentions, do buyers tell the agents the truth about their intentions.... no? If not then how the heck can an agent tell the truth if they do not have it!? This is why its more business then grocery shopping. Its just bank give people the capacity to play in an arena they are not prepared for - and many people choose to do so and run the risk. Others chose to do so and educate themselves, and others have enough experience to do it. It's easy to complain but the blame needs to be put where it belongs, on the buyer or seller. Unless the agent has done something illegal of course...

.. else the whole complaining about agents is jibbering nonsense.

But I'm not closed minded to write it off else why would I be at a discussion forum.

So, would it be because you disagree with my answer, and therefore discount it. Perhaps you should look at why you disagree with it. Is it because you realize there is nothing you can do about it so chose to ignore it? Because that would make it seem 'jibbering'. Or is it because its wrong, in which case how so?

 

What a load of jibberish....

 

I don't think I have ever met anyone like you, you don't have one original neuron in your head, they all got washed away years ago

 

Hell AT, you heading more and more off track with each comment on this thread.

What don't you get that people aren't talking about functioning with current laws? It's gibberish!

 

Mate, Im just about done with this thread...we all have our opinions and AT is just a jibberer.....

 

That's all he has, he has no thought for himself, it is straight from the text book on Capitalism.

Because something is legal doesn't mean it is right. Here is a perfect example.

My wife and I were looking for a rental property, we found one we liked and filled in an application which included a deposit of 2 weeks rent which they are entitled to by law.

I knew that the deposit is to hold the unit, if we renege on the deal they keep the deposit to compensate for the extra work and lost rental.

ON THE DAY we went to collect the keys and sign the lease which we had been informed was approved, we were told we DIDN'T get the unit after all.

I asked for my $1200 deposit back and a further $1200 from them for reneging on the deal. He laughed, you get your $1200 and NOTHING else.

We had 2 days to get out of our previous address and had to put 4 bedrooms of furniture into storage and rent a motel for us and three children.

It took 3 weeks to find another rental, it cost us in actual costs about $3000 dollars and God knows how many extra hours flat hunting.

The real estate agents are protected by law, the tenant is not, you can rave on until the cows come home about whether it is legal or not....IT IS NOT RIGHT.

 

Later on I called in to see the new tenant. He told me that he was all approved except that there was one other couple ahead of them, but if he was to offer a further $50 per week he would get in over them (us). Now that IS NOT LEGAL, but they know no one will pursue it in court so they can away with it. But that is OK eh AT, it is the Capitalist way, profit before people.