by Tim O’Dwyer M.A., LL.B Solicitor Consumer Advocate From time to time some consumer advocates suggest to successful auction bidders, who might have a sudden change of mind, that they should refuse to sign anything and walk away. This is dangerous advice because in most parts of Australia auctioneers may lawfully sign a sale contract on behalf of a reluctant buyer (and hesitant vendor). (See “Winning Auction Bidders Beware“). Even if no signed post-auction contract, a...
Continue Reading »
An article by Jennifer Duke “In Victoria underquoting is endemic, rampant, it’s grubby, it’s misleading and deceptive and it’s a fraud on home buyers,” explained Rowe. “Consumer Affairs Victoria lacks the necessary laws and resources to police underquoting. Real estate agents enjoy the luxury of loop holes in the rules to bait home buyers into attending auctions which are outside their budget. This frustrates buyers. Underquoting causes home buyers to waste their time, money and...
Continue Reading »
While all property auctioneers, the vast majority of real estate agents and most newspaper property reporters sing the praises and extol the virtues of auctions for buyers and sellers alike, there are a few of us out here in real estate and conveyancing land who have our doubts. Fellow consumer advocate Neil Jenman has long argued that auctions get lower prices. Real estate trainer Gary Pittard recently demonstrated how it is impossible to guarantee the...
Continue Reading »
It’s a phenomenon fast becoming known in the property industry as ”GOMO”: Grief Over Missing Out. Prospective buyers who pin their hopes on a dream home and are outbid at auction by competitors are increasingly slumping into a state approaching clinical depression, experts say. “Some people put an enormous emotional investment in a particular place and fall in love with it before they’ve been able to buy it,” said Amanda Gordon, a clinical psychologist and...
Continue Reading »
Interesting new research about the emotional drivers behind property purchases cements the undeniable reality that investors are just like everyone else – sometimes susceptible to thoughts that go against their better judgment. “I reckon another $10,000 will get this bad boy across the line,” the agent smiled, smoothing down his slick suit and nudging his Montblanc pen closer towards me. “Just write the new offer amount there and initial it, and I reckon it’ll be...
Continue Reading »
Ever wondered why agents underquote? The simple answer is because it works. This may not be a popular view of underquoting and as frustrating as it may be, underquoting is a necessary evil in Melbourne’s auction system. Growth in property prices this year has highlighted the widespread practice of underquoting and the frustration of buyers who miss out when properties sell for much more than the advertised estimate. Ironically, the practice that frustrates buyers is...
Continue Reading »
Auction lingo is confusing potential buyers and putting them at a disadvantage, according to one buyers’ agent. Patrick Bright of EPS Property Search says buyers need to recognise the terminology used by auctioneers to understand the auction’s progress. “Like many professions, real estate has its own language and terminology that is often intimidating and confusing to outsiders.” Bright says the terminology is designed to elicit a response from potential buyers, but if they read between...
Continue Reading »
Whether we have been advising and representing property sellers or buyers, Mitchells have long warned our clients to be wary of auction sales. Sellers beware! A crusty old real estate agent once remarked that an auction was little more than a device for persuading sellers to drop your reserve price. And buyers beware…particularly of vendor or auctioneer bids! Some time ago our Tim O’Dwyer, wearing his Real Estate Watchdog’s hat, gave this on-line warning to...
Continue Reading »
By George Rousos Director Industry Training Consultants P: (02) 49 436110 F: (02) 49 436110 M: 0416 297197 e: george@itc.nsw.edu.au Back in 2010 we received an enquiry about the real estate auction method in NSW and the sharp, deceptive practices that are sometimes used to enforce a contract. A consumer buyer, whom we spoke to, believed they were induced to enter into a contract at auction by misleading and deceptive conduct and was considering a civil...
Continue Reading »
OPINION by Tim O’Dwyer M.A., LL.B Solicitor Consumer Advocate watchdog@argonautlegal.com.au When the purchaser of an up-market home unexpectedly says settlement won’t take place, does the vendor still have to move out before terminating and claiming damages? Donna Kelly-Corbett was pleased when she sold her home at auction for $1.2 million. Although she already had a finance-approved contract to purchase her next home, her purchase contract was not conditional on the prior sale. Because both contracts were due...
Continue Reading »
