Sydney real estate – it’s a jungle out there. Sydney property prices are higher than ever and so is demand, and real estate agents know this.
I’m not saying all real estate agents have some secret agenda. But like with any industry, there are a few sour apples ruining the rest of the crop.
But don’t lose heart! Here are the top 5 Sydney real estate fibs I get seen told, and what to do if you think you’re caught in a web of lies.
Sydney real estate lie #1: The off-plan apartment with it all
It’s got everything: security, a front desk, a swimming pool, a small gymnasium, and a view to make your friends envious. But you’ve never actually seen the place in person, because it hasn’t been built yet. Yep, you’re buying off the plan, and you think you’re buying your dream house. The real estate agent assures you it’s a bargain for the area you’re buying in, and you’d be crazy not to go all in. After all – the place is brand new and never been lived in!
My advice:
Don’t buy off the plan. Otherwise, you might end up like this guy without a bedroom.
Sydney real estate lie #2: It’s a bargain
Under quoting in Sydney real estate is rife. Luckily for Sydney first homebuyers, the NSW government introduced new laws last year to protect both buyers and sellers from under quoting tactics. No longer will you see homes advertised as “offers over”. Sydney real estate agents are now required by law to provide evidence on how they value a home, with the figure quoted to be no lower than this amount. The best part? They’re removing all that vague language surrounding the price of property in Sydney, with a maximum range of 10%. E.g. $600,000 to $660,000.
My advice:
By law, any price quoted needs to be in writing from the real estate agent – a quick phone call doesn’t cut it. If you think the real estate agent is telling you whoppers, they’ll now receive more than a slap on the wrist. Contact Fair Trading NSW if you suspect they’re being unethical. They may also be fined up to $22,000. Ouch.
Sydney real estate lie #3: The other buyer
You’ve found your dream home and your happily ever after, and you contact the real estate agent with your offer. They tell you that there are two other potential first homebuyers with bids higher than yours, but if you can sign the contract quickly and get all of the inspections done too, the owner might accept your offer. It’s a race to the finish line.
My advice:
If there’s a higher bid, why are they still talking to you?
The agent wants to sell the house quickly but also wants to get the most money for his client (the vendor). Usually when this happens, the agent isn’t confident the other buyers will proceed (if they even exist!).
Sydney real estate lie #4: It’s the vendor – not me!
Making up special conditions is a big lie we see in the Sydney real estate market. Recently, I had a customer of mine call me with an interesting query – she’d found her dream home, but the agent said the vendor was a bit finicky.
Apparently, the vendor wanted all offers to be made with a signed contract of sale. This was all without negotiating and agreeing on price, which is standard practice in the Sydney real estate market. Could they have been telling the truth? Potentially.
But unlikely, because my customer then went on to see another house from the same agent, with the exact same conditions.
My advice:
Don’t sign anything until you’re absolutely, 100% certain that you’re ready to commit. There is a lot of work to be ready to commit so you don’t want to do with without verbal agreement. If you suspect you’re stuck in a web of lies, cut your losses and move on.
Sydney real estate lie #5: We need to find a buyer with loads of advertisements!
The best agents will have a database of potential buyers who they’re well acquainted with. If your agent is talking about advertising your property all over the shop, you haven’t chosen the right Sydney real estate agent. A good real estate agent is in contact with buyers who trust him or her, who understands what they need, and treats them with respect and courtesy.
My advice:
Don’t jump at the chance to advertise if your real estate agent says so. If they’re an efficient, reliable and trustworthy real estate agent, they’ll have a decent idea of who will want to buy your property.
At the end of the day, a real estate agent needs to make a sale so they can get a commission. But all Sydney real estate agents are bound by NSW Fair Trading laws, and some agencies include a code of conduct for their agents. Don’t expect them to hold your hand with you into the sunset, but expect courtesy, respect, and most importantly, the truth.