Is There a Buyer Advocacy Group Like There Is a Vendor Advocacy Group?

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  tomleonhart on 14/07/2015 - 09:25

  Coming from the vendor's POV, would you sell your Ferntree Gully, VIC for 520k or 708k ?

  Personally I think this is supply and demand at its best. Speculative or not is another matter. If you want a place to live in and consistently get priced out, perhaps stretch your budget a bit more ? or go for non auction ?

  • 

    JackOfNoTrade on 14/07/2015 - 10:12

    -1

    Like I said in the post, I did stretch my budget by well over an extra 45K for a house that was only worth 660K, IF that. And the house was a private sale, not an auction. The vendor advocate basically called me and other guys who were interested, on the phone to get a deal for the vendor.

    I accept that if i was a seller, I would want a great price..but the house was not worth it and my wife and I were SETTLING for that house cos we cant afford a dream house in this market. That's why I was wondering IF there is such a thing as a BUYER ADVOCATE who looks out for us who are just trying to buy a home.

    • 

      tomclancy on 14/07/2015 - 11:20

      +2

      for a house that was only worth 660K, IF that

      but the house was not worth it and my wife and I were SETTLING for that house

      A house is worth what someone is willing to pay for it. Obviously both you and someone else were willing to pay $708k so it was worth at least that much.

      • 

        JackOfNoTrade on 14/07/2015 - 11:40

        I offered that much cos after 2 years and 68 actual written offers and auction bids, one gets desperate just to be over and done with all this bull. Just cos someone offers a lot of money to a house doesn't mean its WORTH that much. I guess in the end it was either an 'overseas buyer' or a property developer who clinched the deal.

      • 

        JimB on 14/07/2015 - 11:44

        @jophilips:

        The buyer could have also be a local buyer who wanted to live there.

      • 

        JackOfNoTrade on 14/07/2015 - 11:46

        +1

        You're probably right. I guess I'm just grumpy after 2 years of house hunting.

      • 

        [Deactivated] on 14/07/2015 - 16:41

        +1

        @jophilips:

        It is worth what someone pays for it, whether you disagree with that or not is irrelevant.

      • 

        Charlatan on 15/07/2015 - 10:06

        @Drew22: Defining value in this way generally only works in liquid markets. You can make an argument for it, but your definition of "value" is not the one and only.

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  toniyellow on 14/07/2015 - 10:22

  +1

  There are buyers agents. They are good if you are looking for an unusual property (e.g. require wheelchair access) or aren't confident enough to bid at an auction.

  I don't know why else you would use one if you are on a budget. They are not free, so it is just another expense. They aren't going to be able to stop people bidding against you. If anything I feel like using an agent will signal to the vendor that you have enough money to pay a buyers agent so they should try and squeeze even more out of you.

  • 

    JimB on 14/07/2015 - 11:21

    ooops

  • 

    dasher86 on 14/07/2015 - 12:40

    A buying agent basically short lists properties you may like for you.
    Some people use them because they either don't have the time or cannot be bothered doing it themselves.

    Apparently depending on the networks your buyer agency has they can have access to properties which aren't listed on the market yet. People who are looking for a quick turn around.

    I've never had experience with one before but a mate of mine used on to buy an apartment on St Kilda Road (Vic). He said that the buyers agent told him of offer a larger deposit as the owner was cash strapped. Supposedly managed to get the property <20k by doing so.

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  JimB on 14/07/2015 - 11:22

  +2

  Vendor Advocacy is an Agent?

  Sorry, no one looks after the buyer (apart from being misled about the house itself, not the price), I think what you're looking for is only found in a socialist country- that never works well in the long run.

  The vendor will sell for the highest price to look after themselves, they aren't a community service.

  Which property was the one in FTG? You will be able to find out a few months after the sale as it's public information then.

  If you don't to pay more than $xxx, don't offer more than $xxx.

  You may think it's only worth $660k, but was willing to pay $708k. The eventual buyer may have thought it was worth more than $708k and offered accordingly.

  I sold a few weeks ago, minimum I was going to accept was $650k, the agent advertised it at $590k and it sold for $680k after a fortnight. There were a few interested buyers at the $670k range, but $680k was the highest bid and so it was theirs.

  • 

    JackOfNoTrade on 14/07/2015 - 11:35

    I didnt want to offer anything more than 670K in all honesty. But with the way the market is skyrocketing, I probably wont be able to afford a house at all in a few months. I guess the pressure of dealing with that Vendor Advocate really got to me.

    Your advertised price and final sale price is so reasonable and ultimately a fair price I think. I guess that's what I'm struggling…not being able to get a house at a fair price.

    • 

      JimB on 14/07/2015 - 11:41

      I don't think the Melb Eastern Suburbs market will sky rocket between now and the rest of the year.

      You should be able to find a house in Bayswater for $670k.

      Which property in FTG were you looking at?

      • 

        JackOfNoTrade on 14/07/2015 - 11:44

        I'm trying to buy towards the west of the train tracks. Unfortunately houses are really getting pricey there. Attended an auction on Saturday for a Bayswater house that hadn't had any renovations done for at least 20 years on an 825sqm plot. Sold for 720K.

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  JackOfNoTrade on 14/07/2015 - 11:35

  Thanks to everyone for their responses so far. I appreciate all of you taking the time to respond. Cheers

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  donbot on 14/07/2015 - 13:05

  +3

  With all due respect - if you've been to 68 private sales or auctions over the past 2 years, I'd say that you're expectation might be set too high.

  Eg. If you're willing to pay $660k, but get beaten at auction by a little bit over your limit - then you're probably on the mark in terms of price.

  However, it sounds like you're getting beaten by a lot at every single auction you attend. Thats the market telling you that you that you're not in contention.

  Also - how are you bidding? Ask if the property is on the market while others are bidding. Make sure not to bid until its on the market. Put pressure on the auctioneer to get the property on the market.. make sure he tells the vendor in their little meeting in the back room that there is an interested party that isnt bidding until its on the market.

  Make others nervous that you're not bidding until its on the market - you send a message that you know the rules of the game, and are here to buy this property.

  Bid confidently - keep the message clear to others that you're not yet at your limit. Know your limit and absolute max and bid the same using the same tone and body language the whole way along - dont give anything away to other bidders who will be looking for any sign that your approaching or at your limit.

  I say this as someone who has only successfully bought at auction once, so by no means a guru at it. The pointers were from someone much more experienced at buying property.

  At the pointy end of my successful auction, I could tell that the lady I was bidding against limit was $x and I'd hit it. Her tone changed, her next bid was minuscule to what her previous bids were ($500) and all it took was one final blow of $1000 to prevent her from bidding again and to send a message that I wasn't yet done.

  Auctions are $hit for buyers, but I think the bigger problem is you're trying to buy in an area you cant afford.

  • 

    ykwon10 on 14/07/2015 - 16:18

    +1

    I can't agree more with tizey's comments above. If you have been to so many private sales and auctions and yet unable to come to term with the market price, it simply means that your valuation of the property market is too low.

    I was actually in the same boat as you about 5 years ago where I was looking around for almost 2 years, still couldn't buy anything. Was thinking property market is overvalued, prices will go down soon, etc. I regretted not buying then!!

    Now I finally bought a house (unit) approx. 1.5 years ago after struggling internally for 3.5 years for $650k and guess what? Real estate agents knocking and asking if we would like to sell our house now! Surrounding units of the same size is selling for $720k-$800k already!!!

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    JackOfNoTrade on 15/07/2015 - 17:56

    @tizey - I appreciate the constructive criticism. And I've never taken into consideration that bit of asking if the house is finally 'on the market' at auctions. Thanks for the advice.

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  Baysew on 14/07/2015 - 16:03

  There are many Buyers Advocates just check Google.
  They have to be a Licensed Real Estate Agent, and many just specialize purely as Buyers Advocates.

  Of course there will be a cost.

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  jimbo687 on 15/07/2015 - 07:48

  The problem with using a buyers agent is many, if not most, just flog you any rubbish properties they found on realestate.com.au, and charge you an arm & leg for it, by the time you realise they are rubbish you already bought it. Was going to use one, all were unethical & useless. Many buyer agents are failed real estate agents !

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  usmanyousaf on 19/07/2015 - 20:53

  Hey JoPhillips
  the secret to own a house is to bid the house 10k - 20k extra on what u think.
  By the time u settle in and start living, you will find within few months that u made the right choice coz prices r radicalously going up all the time & day by day.

  I personally bought a house for 420k. I thought at that time it is 15k expensive than it should. However, there were few buyers who offered 425k for the house on the last inspection day. I was lucky had signed the contract 1 day before last inspection day.

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  JackOfNoTrade on 24/07/2015 - 08:16

  Thanks to those who gave me some constructive criticism and real advice. And especially @ tizey Your advice on bidding hard and strong helped me secure an ideal family home in Bayswater for 710K.

  "Make others nervous that you're not bidding until its on the market - you send a message that you know the rules of the game, and are here to buy this property.

  Bid confidently - keep the message clear to others that you're not yet at your limit. Know your limit and absolute max and bid the same using the same tone and body language the whole way along - dont give anything away to other bidders who will be looking for any sign that your approaching or at your limit.

  At the pointy end of my successful auction, I could tell that the lady I was bidding against limit was $x and I'd hit it. Her tone changed, her next bid was minuscule to what her previous bids were ($500) and all it took was one final blow of $1000 to prevent her from bidding again and to send a message that I wasn't yet done."

  Thanks again to everyone for their advice.