I Swear Real Estate Agents Are Doing Something Dodgy!

Cheese86 on 08/02/2021 - 15:11

It's like the 3rd time this has happened. I saw a GREAT property today for the first time on realestate.com.au. I call/email the agent resposible for it to ask when we can inspect it. Turns out it's just been sold. When I ask how long the property has been on the market for, he replied "2 weeks". That's BS. If so, I would've seen it prior to today. How much did it sell for? Every time it's less than what I would've offered or what it would've gone for had there been an auction.

Is it just me or has anyone else experienced this? It's as though agents are hoarding these great properties for mates or something and selling it for a lower price…before everyone else has a chance to even inspect it.

Home & Garden

Comments

  • jjjaar on 08/02/2021 - 15:16
    +24

    Some houses are on the market but not advertised. They’re shown to interested buyers in a more private manner to see how much enthusiasm there is on the market for them. If this fails, then they will begin public advertising of it.

    • Cheese86 on 08/02/2021 - 16:12
      +1

      Thanks. I always thought that "on the market" = "advertised". What a noob I am.

      • voo123 on 08/02/2021 - 17:15
        +7

        If you give out your details to agents, you will join their database. For any property about to hit the market, the agent spams that database so you have your chance to offer. If offer not good enough, property then hits the public market. Agents wants a quick easy sale more than anything, so a quick sale in the off market is sweet for them.

        Sometimes if they get a quick sale in the off market, they will still market it on realestate.com as ' SOLD IN 2HOURS!!' to boost their ego and drive up the FOMO.

        So its good to get into their database, however many people act all wierd when agents ask for their details.

        • deme on 08/02/2021 - 19:07

          How do you get on their databases fast

          • voo123 on 08/02/2021 - 19:58

            @deme: Show that you're a keen and serious buyer. Or just be open to providing your details to them. Don't throw ridiculous low ball offers as it shows that you're a tyre kicker.

          • dmbminaret on 09/02/2021 - 08:26

            @deme: Go to all the open houses

      • Forkinhell on 09/02/2021 - 09:39
        +2

        'Real estate agent' is swahili for 'con artist'.

        They never give a property owner a true assessment, just get them to sell for whatever will give the agent a quick return.
        In that way, they manipulate market.

        We were told by an estate agent, when we sold our house, that he would give us a 'spotters fee' of $500 if a person we recommended then sold their property through him.
        Friends sold their property, but the agent then denied our involvement, so, no $500.

  • Muzeeb on 08/02/2021 - 15:17
    +20

    I don't believe any real estate agents are dodgy so your observations are likely incorrect.

    • Euphemistic on 09/02/2021 - 10:58
      +2

      I think I need to see that in Ms paint.

  • Hithere on 08/02/2021 - 15:20
    +10

    Real Estate Agents and Car Salespeople, neither are dodgy nor do they try to con people.

    You are badly mistaken OP /s

    • maiuspala on 09/02/2021 - 13:58
      +1

      Neither are politicians

  • tsunamisurfer on 08/02/2021 - 15:21
    +1

    When I ask how long the property has been on the market for, he replied "2 weeks". That's BS. If so, I would've seen it prior to today.

    What mechanisms have you put in place to be notified of stock coming on the market?

    Was it even listed on the major sites? It may have been available on the market where the agent gave his list of buyers the first glance at the property (thereby avoiding listing fees). Yes there is a slight chance that his list of buyers may contain 'friends' but that does not mean he can sell it under market for mates.

    Is it just me or has anyone else experienced this?

    Just you.

    When I was interested in an area I put in saved searches and notified by the major sites. I put my name down with the main REA's that service the area I am after, they often call and say I have such and such coming on line soon, would you consider XYZ?

  • [Deactivated] on 08/02/2021 - 15:26
    +5

    Listing prices on realestate.com.au / domain can be up to $5K depending on the area and the market is crazy hot (in some areas) right now.

    Agents are avoiding paying these fees if they don't need to. Therefore if they have contact details of prospective buyers they will contact them directly. This is called selling "off market".

    I suggest you become friendly with some agents so that they call you directly when they have something they think you will want to buy.

    • Cheese86 on 08/02/2021 - 16:14

      Thanks, I had no idea that agents contact prospective buyers before doing the full marketing thing. Looks like I have to start talking to some of these agents personally. Don't want to miss out on any more gems.

      • SydStrand on 08/02/2021 - 16:24
        +5

        I'm surprised you hadn't been contacted. Each time I went to an inspection, the REA would practically beg to put you on their mailing list, will call to follow up and see how your search is going, etc.

        • Cheese86 on 08/02/2021 - 16:31

          Oh, quite a few agents should have my details by now, but probably not enough. Will have to get in touch with a few more.

    • Drakesy on 08/02/2021 - 16:21
      +2

      Geeze, i thought it was a bit to list with them but not that much, that's incredible.
      No wonder the Murdoch Train is pushing high property prices through Domain, Realestate.com and his editorials.

      But yeah, Real Estate Agenets, value add next to nothing and get to tack 0.5-1% of your property.

  • Baysew on 08/02/2021 - 15:29

    Every time it's less than what I would've offered or what it would've gone for had there been an auction.

    Blame this guy

  • pharkurnell on 08/02/2021 - 15:32
    +5

    You need to get Dennis Denuto on the case.

    • DashCam AKA Rolts on 08/02/2021 - 17:47
      +1

      He's sticking to the Melbourne market currently, but may be open to a lucrative offer to undertake Sydney real estate work.

  • Muzeeb on 08/02/2021 - 15:33
    +5

    It's as though agents are hoarding these great properties for mates or something and selling it for a lower price…before everyone else has a chance to even inspect it.

    You imagination is running wild. This is so far from reality it's bordering on narcissism and blame shifting.

    • pharkurnell on 08/02/2021 - 19:58
      +1

      RE's have been nailed for this in the past…
      But I wouldnt think it wide spread with all the fine tooth comb reporting etc… but nothing surprises me anymore.

  • TheMindsetTraveller on 08/02/2021 - 15:39
    +3

    Many/some agents offer serious/prospective buyers off-market opportunities a few weeks prior to releasing it to the general public and incurring $x,xxx of marketing costs.

    I would be guessing that happened exactly in this case; the property was shown to some prospective buyers … nothing concrete came through, so it went to online market, and at the same time, one of those buyers finally came through and the property is in fact, co-incidentally, sold.

    • Cheese86 on 08/02/2021 - 16:15

      That makes total sense and explains a lot. Thanks!

  • Keplaffintech on 08/02/2021 - 15:49
    +5

    Real Estate agents are always doing something dodgy. Never believe anything the REA says at face value, do your own research.

    REA's top priority is to sell the property as fast as possible. Sometimes the vendor wants this too, in these cases then it's not about getting the best price, but the fastest sale. REA will tend to have a list of buyers at hand to contact first. You can get on that list by calling up / showing up to inspections and looking serious (ready to buy).

    • netjock on 08/02/2021 - 15:59
      +1

      Probably closest to the truth. REAs would want to flip it for a quick buck considering potentially a few extra hours of work is enough to flip another property quickly.

      • CrowReally on 08/02/2021 - 16:25
        +5

        Yes, this is covered in the first Freakenomics book. If you have a REA on a 2% commission trying to sell a $1m property, they know when they sell the property they get $20,000.

        If they find out there's a potential better price of $1.05m if they hold out for an extra fortnight and push the property harder, then they have the potential to get their seller an additional $50,000 … but the REA cut is only $1,000. And the REA likely doesn't want to spend 2 weeks trying to churn $1k of extra money and neglect their chance at making another $20K flip in the meantime.

  • GG57 on 08/02/2021 - 15:49
    +2

    If you were seriously in the market, you would be on the agents' list of prospective buyers.

    • Cheese86 on 08/02/2021 - 16:14

      Note taken! Will be contacting some agents tonight.

      • Cheaplikethebird on 08/02/2021 - 16:38

        Yes just remember that the agents fiduciary duty is to the seller. It's their duty to get the best price out of you for the seller as possible.

  • Archi on 08/02/2021 - 16:06
    +3

    i understand the general consensus that REA are dodgy and i have come across my fair share of a few.

    but what happened to me was when i was looking at purchasing the family house. i met one that was helpful and i thought gave good advise although i missed out on the house that he was selling i asked if he was interested in selling my property that was outside his area. he agreed and got me record price for the sale. i continued looking in the area and came across him a few more times and had good report with him. eventually found the house i wanted to buy that was listed by another REA. i asked if he could bid on my behalf, using his experience and strategies. He won the auction under my budget and i have a new home. that was 4 years ago, and now he has opened his own REA, he has a reputation in the area for being a super nice guy.

    they are not all dodgy. but certainly strategic, i've gained a friend and someone i can go to should i need advice on the market or is i am looking for property,

  • Bunnyburger on 08/02/2021 - 16:08
    +1

    Is there anything they are doing that isn't dodgy?

    • CyberMurning on 08/02/2021 - 16:09
      +1

      either dodgy or cathy…

  • askme69 on 08/02/2021 - 16:17
    -1

    Real Estate agents are always goods mates with Lawyers who handle wills etc.

    Guess why.

  • Ryanek on 08/02/2021 - 16:17
    +1

    Some properties are sold even before they are advertised, but they will still upload to Realestate.com so that can show a portfolio of sold properties.

    • Cheese86 on 08/02/2021 - 20:49

      I totally think this is the case with those properties. I had no chance…

  • twadds on 08/02/2021 - 16:42

    What does it say on the listing? In the corner of the 1st picture there should be a blue box saying how long ago it was listed, though it's only there for the first 7 days.

  • Cheeper on 08/02/2021 - 17:17
    +1

    A lot of houses are sold before being advertised. It is a sellers market and many REAs have buyers waiting …
    They are slack in removing ads for sold properties though. 24 hrs would be enought time for them to take them off or get hit with a fine.
    One place I purchased still had photos of it in an agents window months afterwards with no indication it was sold.
    Go register with some REAs, it may help to get you notified first rather than chasing old ads.

    • Cheese86 on 08/02/2021 - 20:42

      I only learned today (thanks to you guys here) that often, the houses that turn up on realestate or domain are already old news.
      I will be getting in touch with some agents personally to get a fair go at the rare gems!

  • Brucet on 08/02/2021 - 17:26
    +1

    Most of them are Dodgy. Car sale men too.

    • No on 08/02/2021 - 17:38

      Car sale women are ok?

  • iNeed2Pee on 08/02/2021 - 18:18
    +2

    Some Gumtree scammers are less dodgy than Real Estate agents.

  • Quantumcat on 08/02/2021 - 18:21
    +1

    Talk to all the real estates in your area, tell them what you're looking for ie suburbs, number bedrooms, car spaces, what sort of back yard you want, etc and they'll contact you when something suitable comes up

    • Cheese86 on 08/02/2021 - 20:35
      +1

      Will do. Guess I have to be more proactive than waiting for the right house to turn up online. I've learned that by the time it appears on realestate, it's probably too late.

      • HelpMeiCantSee on 09/02/2021 - 08:26

        You’re right. It’s a sellers market right now. You need to make it known you’re in the market and what you’re after.

    • JIMB0 on 09/02/2021 - 07:23

      You also have to be very specific with what you want, otherwise they'll try to sell you a 2 bedroom unit in suburb B when you're really after a 4 bed house in suburb A.

  • yolo123456789 on 08/02/2021 - 18:24

    totally agree

  • dogboy on 08/02/2021 - 18:29
    +6

    Real estate agents are the lowest of the low. One rung below job agents.

  • HelpMeiCantSee on 09/02/2021 - 08:25

    The market is hot as hell right now. A huge number of homes are on the market for days, and never get to the advertising stage before being sold.

  • HeWhoKnows on 09/02/2021 - 08:39
    -1

    The only person being dodgy here and dishing out BS here is OP

    Almost everyone knows we are in the biggest property boom ever.
    Money is almost free and very easy to get.
    Its never been better

    Even properties in country towns such as Tuncurry and Forster NSW are selling the same day they are listed.

    So OP I suggest you quickly pull your head in and apologise for this inappropriate and degrading comment about real estate agents!

  • WPete on 09/02/2021 - 11:11

    Have you checked out the material at jenman.com.au? Neil Jenman has been in real estate for many years, and discloses the tricks of the trade used by the (few) unscrupulous agents.

  • Willco88 on 09/02/2021 - 11:17
    +2

    EXACTLY the same with "certain" car yards they have killer deal online then you ring " oh it just sold " what it is, they make a very attractive deal for people to get excited about and to hope it will attract enough people to look closer and do A DEAL With them….. It's just marketing

  • afah0447 on 09/02/2021 - 12:13
    +1

    Of course they are dodgy! Australia has the greediest (and most vein) real estate agents in the world. They get paid so much for doing so little. Its an absoule scam and an industry which is ripe for some sort of innovative app to shake it up and weed out all the absolute greed.

  • terlalu on 09/02/2021 - 15:56

    how much do real estate agents really make? say it's 2% commission on $1m property. Do they pocket the $20k, and just pay fixed $$$ to the company, or split it 50/50 ??

    • voo123 on 10/02/2021 - 15:36
      +1

      They split the commission with the real estate company. The percentage is variable based on skill and sales etc. For example, my real estate agent (who gains the listing) had a 40% split with his company when he first started, then negotiated to 45% once he establishes his reputation. Then the secondary agent (who didn't gain the listing, but assists the listing agent in inspections etc) has a smaller % commision, probably 5-10%.

  • SlickMick on 10/02/2021 - 00:03

    Looks like the real estate market is getting busy again. I'm noticing Sold signs where there wasn't even a For Sale sign when I drove past a week before.

  • blwnhr on 10/02/2021 - 09:50

    We settled on a block in October, the last block in the subdivision. It's still listed on the agents web site and the signage at the entrance to the subdivision has every block but ours listed as sold. The agents want the free contacts.
    We have emailed them to take the signs down but they don't respond.

    • GG57 on 10/02/2021 - 10:35

      The signs are not on your property?
      Don't worry about it.
      Or, just push it over.

      • blwnhr on 11/02/2021 - 08:53
        +1

        There is one at the entrance to the estate on a main road, another at the entrance to the subdivision (both 2m high).

        Not a huge issue, except when we go up there to plan for the build, maintain the lot etc. there are people walking around "inspecting" it. As the owner, if someone hurt themselves (possible, it's a rocky site) we would be liable.

  • bobolo on 10/02/2021 - 14:23

    Plenty of properties are selling before they hit the market. If the seller can get the price they want or more without having hundreds of people walk through their house and spending thousands on unnecessary marketing, they will. Likewise if an agent can sell a house without conducting 20 inspections and hundreds of phone calls, they'll be happy to do that as well.

    Your job as a buyer is to communicate with selling agents to let you know about these listings before they get advertised

    In a hot market you simply need to be more competitive. You snooze, you lose.

  • happyhammer on 10/02/2021 - 14:57

    If its anything like the job recruitment market, then they could be too good to be true so they get your details?

    Had a friend work in recruitment at one of the top agencies who just made up enticing jobs to get interested people's details and then say that 'its gone, but here's another similar role' (of course a real opportunity but for less money etc.)

  • Dack Smith on 10/02/2021 - 14:58

    Never known real estate agents to be honest or trustworthy, the very nature of their profession lends itself to various problems that are poorly regulated.

    So many stories …… so few learn

  • haemolysis on 12/02/2021 - 13:24

    Lots of agencies have “pre-market opportunities” which go onto email lists or on their own website but aren’t put up on the big advertising yet. I guess it’s to save on marketing costs. Just ask to be on their email spam list and you’ll see these things. You can unsubscribe when you’re done with the spam.

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