Why auction theory won two American economists a Nobel Memorial Prize. Think of what happens when you bid for a house at an auction. As a bidder you’re going to behave strategically, based on the available information, in competition with other bidders. You’ll take into consideration what you know about the house, but also what you believe other people know about the house. But what’s the best format for an auction? If you had to...
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COMPETITION in the cut-throat real estate market is so intense one Gold Coast agent is giving out $1000 incentives for referrals. Andre Sharples, of Professionals John Henderson Real Estate, has given away $10,000 this year — and hopes to give out more. “It gets me business as I’ve got people out there promoting me to get their $1000,” Mr Sharples said. “Listings are very tight and it’s another way to promote yourself. “It doesn’t affect...
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Author: George Rousos of Industry Training Consultants Some of the activities and practices of the real estate industry, that might be questioned in ethical terms are about the potential to distort pricing information in a market in which it is already very difficult to obtain relevant and dependable information. The pricing information is distorted because some of the conditions associated with the definition of market value have been manipulated, particularly the concept of the arm’s length transaction...
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Shannon Molloy, deputy editor of Australian Property Investor Magazine, has posted a commendably detailed and informative article on-line on the above topic. Discover what the legal and tax implications are, he writes, when converting your family home into an investment property: Whether you’re taking off overseas for a holiday or new job, moving interstate or buying a new house elsewhere, it’s probably crossed your mind to rent out your current family home rather than sell...
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For all the neatly angled flags, shining A-frame notices and freshly-stocked clipboards, the urban warfare of the Sydney open-house inspection has a slyly winking underbelly. Throwing the doors of our most valuable properties open to Joe Public has a way of bringing about the baddest of bad behaviour, from neighbourly sabotage to staged lunacy. Add to that the litany of minor accident booby-traps, alarm debacles and fiendish take-no-prisoners buying strategy, and the Saturday morning house-viewing...
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A newspaper report brings to light one of the perennial problems in real estate – the real estate agent valuation or “appraisal”. It is common practice for real estate agents to overstate the value of real estate in order to win a listing, and then “condition” the vendor into accepting a lower price. Few consumers ever complain about the practice, and the real estate agent is usually able to brush away a complaint with the...
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Claudia Fiori knew selling her home would come at a cost, but drew the line at paying commission to an agent who, she claims, did nothing. Ms Fiori believes she was led into a trap of signing an exclusive contract with LJ Hooker’s Kathy Phillips when she put her Woodridge house up for sale. However, 36 hours after signing the contract Ms Fiori sacked Phillips. According to Ms Fiori Phillips allegedly agreed to terminate the contract. However,...
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THE time has come for you to sell the rather dated home of your elderly relative or long-standing family friend. It is a home you may have known for many, many years. A house that is a time capsule full of your life’s memories, a place you played as a kid, and perhaps where even your own parents played. From the apple tree in the backyard out of which your sibling pushed you so many...
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When looking to buy an investment property that will bring in a good rental return, location – in particular, proximity to public transport and the local shopping strip – is key. As is buying something that offers a sensible layout and, if you’re intending to lease it immediately, won’t require large capital works to bring it up to scratch. But once you’ve taken possession, what – apart from ensuring the property has been properly cleaned...
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THEY say you can’t sell a secret, but some scenes are best kept hidden, especially when selling real estate. A goat tied to the clothes line, dirty dishes throughout the kitchen and grotty bathrooms – these all sound like scenes from a reality TV show about hoarders, but in fact all these “special” features have popped up in “unreal estate” listings online. Real estate commentator and host of Selling Houses Australia, Andrew Winter, said great photos...
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