{"id":40332,"date":"2022-09-29T03:17:52","date_gmt":"2022-09-28T14:17:52","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=40332"},"modified":"2022-09-29T03:17:52","modified_gmt":"2022-09-28T14:17:52","slug":"house-price-problem-plaguing-sydney","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/house-price-problem-plaguing-sydney\/","title":{"rendered":"House price problem plaguing Sydney"},"content":{"rendered":"

PHOTO: Aussie homebuyers are facing a \u2018frustrating\u2019 problem.<\/strong><\/p>\n

An expert has revealed a sneaky tactic being used by some real estate agents<\/a>, and its causing a major headache for potential homebuyers.<\/p>\n

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Homebuyers are being faced with a \u201cfrustrating\u201d problem that is making the already difficult task of purchasing a property nearly impossible.<\/p>\n

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How to report \u2018deceitful\u2019 real estate agents<\/a><\/h2>\n<\/header>\n<\/div>\n<\/div>\n

A recent ad for a house for sale in Sydney<\/a> has highlighted one of the key issues buyers are having to navigate when looking for a new home.<\/p>\n

When looking to buy, many people rely on the provided price guide on the listing to determine whether a particular property is within their budget.<\/p>\n

Makes sense, right?<\/p>\n

Well, unfortunately, it seems these guides aren\u2019t always the price a seller wants.<\/p>\n

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New real estate agents are in for a market shock<\/a><\/h2>\n<\/header>\n<\/div>\n

A home whose listing has brought this issue into focus went to auction last weekend, with buyers given a guide of $1.5m to $1.6m during the campaign.<\/p>\n

The property was then passed in, meaning the top bid did not meet the vendor\u2019s expectations.<\/p>\n

The listing was then changed to include what was branded a \u201crealistic guide\u201d, which had increased by more than a hundred thousand dollars.<\/p>\n

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The listing now displays a \u2018realistic\u2019 price guide.<\/strong><\/em><\/div>\n

Chief executive of real estate mentoring business The Property Mentors, Luke Harris, told news.com.au a realistic price guide and a regular guide can actually mean the same thing in the real estate world.<\/p>\n

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\u201cBy law, a price guide should be realistic anyway to avoid underquoting. Agents will often use whatever terminology they feel suits the vendors requirements, market conditions and buyer demand,\u201d Mr Harris explained.<\/p>\n

\u201cFor example, if they know the seller is very keen to sell, the agent may emphasise the \u2018realistic\u2019 component to tell buyers that the vendor is serious at that price range, rather than other sellers that might be holding out for a higher price.\u201d<\/p>\n

Unfortunately, changing price guides are something that potential buyers are having to continually navigate through.<\/p>\n

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Selling Sunset: How the real estate agents REALLY make their millions without earning a salary | WATCH<\/a><\/h2>\n<\/header>\n<\/div>\n

There could be a number of reasons for price guides to change, but buyer\u2019s agent John Carew of Mayfield Property Buyers told news.com.au the situation is \u201cvery frustrating\u201d for buyers.<\/p>\n

Mr Carew said a sudden price guide change could indicate a seller changing their mind about the price they want, but there are also agents that have been using lower price guides to their advantage.<\/p>\n

\u201cIn many cases, agents are still significantly under quoting or under guiding a property in regards to where the vendor wants to be and where likely fair or market value is,\u201d he said.<\/p>\n

\u201cThis is a constant battle and frustration to many buyers. And it causes many of them to dollar up on building and pest inspections, conveyances other checks for a property that actually is never going to be within their budget.\u201d<\/p>\n

The buyer\u2019s agent said using more conservative price guides could be a tactic to bait more potential buyers in order to build competition for a property.<\/p>\n

The practice isn\u2019t illegal and Mr Carew said, in some cases, properties are being under guided by up to 20 per cent of their realistic fair value.<\/p>\n

Mr Carew said the opposite can also occur.<\/p>\n

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Real Estate GURU warns real estate agents will lose their jobs | WATCH<\/a><\/h2>\n<\/header>\n<\/div>\n

There have been recent cases where some properties are being over-guided relative to their fair value and, as a result, selling well below the original price guides.<\/p>\n

\u201cSo it\u2019s quite a maze for buyers or potential buyers to sort of work through,\u201d he said.<\/p>\n

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Homebuyers are faced with \u201cfrustrating\u201d price guides. Picture: Newscorp- Daily Telegraph \/ Gaye Gerard<\/strong><\/em><\/div>\n

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