Don’t be pressured into buying
AS the steam starts to come out of Australia's housing market, house hunters are being warned not to succumb to pressure to buy.
The Real Estate Buyers Agents of Australia (REBAA) is seeing signs of increasing pressure from selling agents to close deals amid evidence of a softening house price market in several capital cities.
REBAA president Rich Harvey said the property pendulum was beginning to swing in favour of buyers and some selling agents were feeling pressure to make a sale and using shrewd tactics to seal the deal.
"Many buyers are unaware of the tactics that selling agents use to influence their buying decisions and may inadvertently fall victim to subtle pressure by either overpaying or making an unsuitable purchase," he said.
"Often it's just the odd throw away comment that the selling agent drops in conversation to the buyer that ratchets up the buyer's fear of missing out.
"Buyers need to enter negotiations armed with extensive research and with their eyes wide open and if they are unsure, inexperienced, or lack time, get professional and independent advice to ensure they are paying the right price."
FIVE PRESSURE TACTICS TO WATCH OUT FOR:
1. Reference to new unapproved infrastructure improvements
2. Dummy bidders at auction (illegal but it still happens)
3. A biased comparable sales list
4. Embellished comparable sales
5. 'Shopping' offers around
DON'T BE PRESSURED BY THESE PHRASES:
"There's a second private viewing happening tonight/tomorrow etc."
"Think how much it would mean to your wife/husband/kids."
"This is one of a kind/once in a generation/unique."
"Last chance to buy and settle before Christmas" (particularly relevant now
given standard 42-day settlement period).
"There's lots of interest and the vendor is thinking about moving the auction
forward so best to put in your best offer prior."
"Word on the grapevine is that this area is being considered for rezoning."
"There's strong interest in this property so you better get a hurry along."
"We've issued 15 contracts so we expect the price to go well above reserve."
"The owner has already rejected $X so you need to be at $Y" - but the
unsuspecting buyer doesn't know if it is a true offer.
"The property is likely to sell over the weekend so you need to make an offer
now if you want a chance to own it."