I get very agitated at the misinformation and bias in the property industry.
Sure, most people start out in the property industry with good intentions. (Yes others do start out with the focus on making the most money possible, no matter what.)
Few maintain that philosophy however.
Or perhaps it is simply a fact that ‘professionals’ in the industry remain as uninformed as those who are not in the industry?
Either way, it is not a great situation for a buyer to be in…
This week I was reviewing a number of real estate sites and came across this listing on a website focused on helping First Home Buyers:
Nice looking house and I am sure that as a first home buyer, this sort of thing would appeal. This property is located in Rockhampton and while that might not be everyone’s pick for their first home, it may well suit first time buyers in Rocky.
Here is the description:
That sounds nice doesn’t it?
However, look at the RP Data report date, 2013. That raises a red flag right there as the report is 4 years old!?
Over the past 13 years RPA has bought properties in Rocky (it has not been for FHB’s and it has not been new property) and I know the prices in the Rocky market reasonably well. I think Rocky has some great buying and is a fantastic place to acquire well priced duplexes for maximum returns.
However the price for the new, First Home Buyer house and land, struck me as being on the high side.
So I jumped online and took a look at the current properties for sale and recently sold offerings.
This is what I found for sale now – same suburb.
Nice looking house, big block, not very old. And $100,000 cheaper!
Here is another property that sold in April 2017:
4 bedroom house and in good condition in a different suburb yes, but surrounded by new homes also $100,000 cheaper than the brand new offering.
That took me 10 minutes online to find and cut the screen shots out for this article. Not a very long time to find an option or two that is $100,000 cheaper than a brand new construction!!!!
The moral of this story is not that the First home Buyer’s website is ripping people off. They are a good team who earnestly, in their minds, advance the plight of their First Home Buyer followers.
The moral is:
Even when using services ‘tailored’ to your situation, in this case a first home buyer using the services of the first home buyers website, you still need to do your research!
The companies that market property to you are getting paid to do so. Even if they are first home specialists, investment specialists, new home specialists, portfolio specialists or whatever they call themselves; they are not charities.
The simple fact is if you are being sold something (in this case a house) and not paying an advice fee to do so, then the person/company you are dealing with does not represent you or your interests, they represent the seller, are paid by the seller and have a goal to get the most money out of your pocket as possible.
In this example a first home buyer could save $100,000 by doing 10 minutes of research online. There is no excuse to pay too much, and if you don’t feel comfortable doing your own research, you can have someone do it for you.
No decent buyers agent in Australia (including us!) would charge you $100,000 for their services on a property purchase of $300,000.
In this instance, if a buyers agent was used, you would have be miles ahead!
Since 2004 Scott Northcott has been helping people buy the best properties for their needs at prices that simply speak for themselves.
Scott has been instrumental in bridging the gap between financial planning and traditional real estate transactions through his property advice model.
By carefully considering his clients’ goals and planning for market changes via demographics and trends, Scott designs a future proof outcome not only specific to the client’s needs but dynamic in its execution with performance indicators and exit strategies built in.