Posted to The Age (22/1/2012) on 24/1/2012 at 3:46 PM
Commenting on "Risky ride on the vendor-go-round"
http://theage.domain.com.au/real-estate-news/risky-ride-on-the-vendorgoround-20120121-1qbal.html
It is most unfortunate that many vendors and buyers do not take the trouble to learn more about sale / purchase of property and real estate agents' behaviour. Vendor selling a property is in fact conducting a small business, even though the business concern lasts hopefully within days or weeks. Some potential business operators attend related TAFE courses or seminars prior to sinking their hard earned money in for the venture, and yet many property vendors just blindly follow the instructions of the agents or agent representatives. The present property median price of $551,000 is worth more than a small grocery store or milk bar. In order to run a successful business, the operators do need to understand a bit of business plan, marketing, budgeting and decision making.
Analogous to a property buyer, we know that many people shop around for a thousand-dollar fridge and 20-30 thousand-dollar car for days and weeks. However, purchasing a property is very different from these items; there is no warranty period or refund policy. Once purchased, the buyer cannot return the property to the previous owner and ask for a refund if the buyer changes his/her mind. Property buyers must not think that they are expert in this field even if they have sold or purchased several properties before. A good agent or representative is required to sell a property a week or around 40 in a year. This is beyond the capacity of many property investors!
I have written a lot of blogs on this subject matter, and I must reiterate here that real estate agents piggy-back on vendors' advertisements to promote their profile, thus relying on the vendors' advertising expenses.
Commenting on "Risky ride on the vendor-go-round"
http://theage.domain.com.au/real-estate-news/risky-ride-on-the-vendorgoround-20120121-1qbal.html
It is most unfortunate that many vendors and buyers do not take the trouble to learn more about sale / purchase of property and real estate agents' behaviour. Vendor selling a property is in fact conducting a small business, even though the business concern lasts hopefully within days or weeks. Some potential business operators attend related TAFE courses or seminars prior to sinking their hard earned money in for the venture, and yet many property vendors just blindly follow the instructions of the agents or agent representatives. The present property median price of $551,000 is worth more than a small grocery store or milk bar. In order to run a successful business, the operators do need to understand a bit of business plan, marketing, budgeting and decision making.
Analogous to a property buyer, we know that many people shop around for a thousand-dollar fridge and 20-30 thousand-dollar car for days and weeks. However, purchasing a property is very different from these items; there is no warranty period or refund policy. Once purchased, the buyer cannot return the property to the previous owner and ask for a refund if the buyer changes his/her mind. Property buyers must not think that they are expert in this field even if they have sold or purchased several properties before. A good agent or representative is required to sell a property a week or around 40 in a year. This is beyond the capacity of many property investors!
I have written a lot of blogs on this subject matter, and I must reiterate here that real estate agents piggy-back on vendors' advertisements to promote their profile, thus relying on the vendors' advertising expenses.
