When navigating the competitive real estate market in Sydney, it is important for property buyers to be aware of the tactics some real estate agents may use to their advantage. As experienced buyers’ agents based in the Inner West, we have seen these strategies employed time and again, often leaving buyers frustrated or misled. In this article, we will explore three common tricks used by real estate agents and explain how we, as professional buyers’ agents, can help you avoid falling victim to them.
1. Underquoting: The Price Bait
One of the most prevalent tactics used by real estate agents is underquoting. This involves advertising a property at a price significantly lower than what the vendor is willing to accept or what the property is likely to sell for. The goal of underquoting is simple: attract as many potential buyers as possible by making the property seem more affordable than it actually is. This tactic creates a sense of competition among buyers, driving up interest and ultimately leading to higher bids at auction.
The other less obvious goal is for the selling agent to grow their personal database by attracting as many people as possible to the property. They will then use their database to generate future business.
While underquoting may seem like a harmless strategy to generate interest, it can have serious consequences for buyers. Prospective buyers may invest time and money in inspecting properties, obtaining building reports, and attending auctions, only to find that the property is well beyond their budget. This leads to frustration and wasted money and resources.
According to NSW law, underquoting is illegal and agents are required to provide an estimated selling price that is based on recent comparable sales. However, despite these regulations, underquoting still occurs in Sydney’s fast-paced property market.
How We Help: As experienced buyers’ agents, we protect our clients from the pitfalls of underquoting by conducting thorough market research and providing realistic price estimates based on comparable sales data. We ensure that you are not misled by artificially low price guides and help you focus on properties that are genuinely within your budget. Our expertise allows us to negotiate effectively on your behalf, ensuring that you secure the best possible deal without wasting time on properties that are priced out of reach.
2. The Mysterious Other Buyers
Another common tactic used by real estate agents is creating the illusion of fierce competition through references to “other buyers” who are supposedly interested in the same property. Agents may hint at multiple offers or suggest that other potential buyers are ready to make bids, even if this is not entirely true. The aim here is to pressure you into making a quick decision or increasing your offer out of fear that you will lose out to another buyer.
This can be particularly frustrating for buyers who feel rushed into making decisions without having enough time to properly consider their options or conduct due diligence. In some cases, these “other buyers” may not even exist, but the mere mention of them can create anxiety and urgency.
How We Help: As your dedicated buyers’ agents, we ensure that you do not fall prey to this psychological pressure. We maintain open communication with selling agents and use our extensive experience in negotiations to gauge whether there truly are other interested parties or if it is simply a tactic being used against you. By staying calm and strategic in our approach, we help you make informed decisions without being swayed by artificial urgency.
3. Refusal to Sell Before Auction: The Auction Theatre
Many real estate agents prefer selling properties through auctions, as auctions can generate excitement and drive up prices through competitive bidding. Even when a property is listed for auction, some agents will refuse pre-auction offers or claim that the vendor is not interested in selling before auction day. This leads to “auction theatre,” where the drama and competition of the auction process often lead to higher sale prices.
While auctions can be used to determine fair market value in a public arena, they are not always in the best interest of buyers. Buyers may feel pressured into bidding beyond their budget due to the competitive nature of auctions, and there is always a risk of overpaying in the heat of the moment.
However, just because a property is listed for auction does not mean that pre-auction offers cannot be made – or accepted. In fact, as experienced buyers’ agents, we have a strong track record of successfully negotiating purchases before auction day.
How We Help: Our expertise in negotiating and understanding the critical importance of timing allows us to approach vendors with pre-auction offers that meet their needs while benefiting our clients. By negotiating before auction day, we help our clients avoid the stress and uncertainty of bidding at auction while securing properties at fair prices. Our deep understanding of Sydney’s real estate market combined with our relationships with the selling agents enables us to craft offers that stand out from the competition and appeal directly to vendors’ motivations.
Why Choose Us as Your Buyers’ Agents?
Navigating Sydney’s real estate market can be challenging for even the most seasoned property buyers. With tactics like underquoting, mysterious other buyers, and auction theatre being used by some real estate agents, it is easy for buyers to feel overwhelmed or misled.
At Buyer’s Domain, we are committed to providing our clients with transparency, expert advice, and strategic guidance throughout every step of the property buying process. As professional buyers’ agents, we work exclusively on behalf of our clients – never for sellers – ensuring that your best interests are always our top priority.
Here are just a few reasons why working with us can make all the difference:
- Expert Market Knowledge: We specialise in Sydney’s Inner West, Inner City and Eastern Suburbs and have an intimate understanding of local market trends and pricing.
- Access to Off-Market Opportunities: Through our extensive network of contacts with local real estate agents, we often gain access to off-market listings that are not advertised publicly.
- Skilled Negotiation: Our proven negotiation skills allow us to secure favourable deals for our clients while avoiding common traps like underquoting or inflated auction prices.
- Stress-Free Buying Experience: We handle all aspects of the buying process – from finding and researching properties and arranging inspections to negotiating contracts – so you are able to secure your dream home without unnecessary stress.
Conclusion
In conclusion, while some real estate agents may use sneaky tricks like underquoting, creating false competition with mysterious other buyers, or pushing properties towards auction theatre for higher prices, there are ways for savvy buyers to protect themselves from these tactics.
By working with experienced buyers’ agents like us at Buyer’s Domain, you can navigate Sydney’s competitive property market with confidence. Our expertise ensures that you avoid common pitfalls while securing your ideal property at a fair price.
If you are looking for expert guidance in your next property purchase in Sydney’s Inner West suburbs or beyond, contact us today at Buyer’s Domain. Let us help you turn your property dreams into reality without falling victim to these sneaky tricks!
