When you're an agency that's become successful by doing things differently, it's natural for people to have questions. Presented below are answers to the questions we're frequently asked.
Many Agents like to tell (or rather 'sell') you that auctions are "the best way to sell". This is not true. A public Auction is one of the worst ways to sell your home, no matter what area you are in or no matter what the market conditions are like.
With recent legislative changes where Vendor bids now have to be declared by the Auctioneer, the Auction really relies solely on multiple (registered) bidders. Quite often there is only 1 bidder. Why would this bidder bid against a vendors' bid fully knowing that there is no one else in the public arena interested in the property? What happens if there are no bidders at all? What does this do to the value of the property? The best case scenario is that there are multiple bidders, but even in this scenario, the price is dictated by what the loser is prepared to pay – one bid above that and the winning bidder gets it.
In most instances the highest bidder would have paid more, but they didn't have to. Therefore the Sellers lose money. This can be tens of thousands of dollars – sometimes hundreds of thousands of dollars and the Agent doesn't even know! Kevin Walter, Principal of Walter & Irvine, has recorded many instances where he has represented Buyers at auctions where he had an authority to bid much higher than what was paid for the property.
One instance in particular stands out. The Real Estate Agency selling this property was a 'high profile' Agency. The large ads looked good in the newspaper. The Auctioneer was one of the State's best, but the process of Auction failed to get the extra $200,000+ which the buyers were willing to pay without further consultation with Kevin, as Kevin had received a written authority to bid to certain level. This means the sellers lost over $200,000 without EVER knowing! Auctions are a flawed system. Our advice is 'Only auction your home is price doesn't matter”. Other than that – steer clear.
Agents are the big winners with auctions. Consumers are the big losers, because they are so easily caught by the deceit and the tricks. One of the greatest tricks is the "reserve" price. Agents will say that homes often sell above reserve. But the reserve is your lowest price. It is the minimum you will accept, under pressure.
Auction involves extreme pressure to sellers - "crunching" them to accept whatever price is offered at the auction. Many agents are taught to use auctions to "condition sellers". The Real Estate Institute of Australia published a book describing auctions as "the fastest and best conditioning method."
Very few people, other than agents, understand the scale of auction fraud. As one lawyer commented, "The auction system is just one gigantic scam and everyone in the industry, other than consumers, seems to be in on it."
If there was a better way to sell 'Risk Free' would you want to know about it? Call us for an obligation free discussion.
There are two big dangers with open inspections - first, they are a security risk and second, they can easily damage the value of your home.
Despite the warnings and the enormous evidence, many agents continue to allow hordes of strangers to wander through family homes. Most people who visit open inspections are lookers, not buyers. Thieves also visit open inspections and check the home for a future break-in. Your home is probably not insured from theft caused by an open inspection.
The purpose of open inspections is not to sell the home; it is to create the impression of activity and "condition" sellers to lower their prices. Sellers believe that the people looking at their home are 'buyers'. This makes them easy to persuade to reduce their prices. Sure, some of the people at the open inspections will be buyers.
But these agents rarely know who is a real buyer and who is a looker. The agents then say to the sellers, "See, it didn't sell. They all think the price is too high. " As with typical advertising, one of the reasons the home does not sell is because the real buyers wonder what's wrong with it. Hence the value is damaged and the price has to be lowered.
Open inspections are also used by some agents to find sellers of other homes in the area. This is one of the most common behind-the-scenes tricks in real estate.
Insist on your security. The best agents interview buyers before bringing them to your home. This is called "Qualifying". And that's all you want - genuine qualified buyers. These buyers should be able to inspect your home at any time (within reason).
You hire an agent to sell your home for the best market price, not to wave people through your home. You could do that yourself and not have to pay an agent.
We have the contact details of the thousands of buyers who contact us as result of seeing our press and internet advertising every month (and we are available after hours and all weekend so buyers can easily contact us).
Every Walter & Irvine representative has an active client list of potential buyers.
Neighbouring properties owners are canvassed.
We have a large bank of past clients and investors.
Thousands of people all over Australia are ready to refer business to APPROVED Jenman agents such as Walter & Irvine.
For every property we sell we have a measured strategy that targets interested buyers, not simply 'all people'. This ensures your property reaches its target market in the most effective and efficient way.
To sell your home we will
Typically real estate advertising is one of the best examples of the incompetence and dishonesty in the real estate industry.
There are three reasons why agents insist on Vendor Paid Advertising
Our agency has a marketing system in place that attracts all buyers in the area to our agency via one central contact point. Each enquiry on a property from a buyer is recorded and the buyer receives regular contact from all members of our team relating to their specific buying needs.
Various advertising mediums are used within our agencies marketing strategy to assist in promoting our service and educate on our difference. We do not charge our vendors for any advertising costs.
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